----

----

| [X]                  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|----------------------|------------------------------------------------------------------------------------|
|                 |                                                                               |
|                 | For the quarterly period ended March 31, 2011                                      |
|                 |                                                                               |
| [   ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

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

----

|          |   |                                                                                                                                                                              | Page No |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Part I        |   | Financial Information                                                                                                                                                             |    |
| Item 1.       |   | Financial Statements:                                                                                                                                                             |    |
|          |   | Consolidated Balance Sheet – March 31, 2011 (unaudited) and  June 30, 2010                                                                                        | 2       |
|          |   | Consolidated Statements of Operations and Other Comprehensive  Income (Loss) – for the Three and Nine Months Ended March 31,  2011 and 2010 (Unaudited) | 3       |
|          |   | Consolidated Statements of Cash Flows – for the Nine Months  Ended March 31, 2011 and 2010 (Unaudited)                                                            | 4       |
|          |   | Notes to Consolidated Financial Statements (Unaudited)                                                                                                                            | 5       |
| Item 2.       |   | Management’s Discussion and Analysis of Financial Condition and  Results of Operations                                                                            | 11      |
| Item 3        |   | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                        | 16      |
| Item 4.       |   | Controls and Procedures                                                                                                                                                           | 16      |
| Part II       |   | Other Information                                                                                                                                                                 |    |
| Item 1.       |   | Legal Proceedings                                                                                                                                                                 | 17      |
| Items 1A.     |   | Risk Factors                                                                                                                                                                      | 17      |
| Item 2.       |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                       | 17      |
| Item 3.       |   | Defaults Upon Senior Securities                                                                                                                                                   | 17      |
| Item 6.  |   | Exhibits                                                                                                                                                                          | 17      |
| Signatures    |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                                                                                                       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                            |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   | March 31 |   |   | June 30 |   |
|                                                                                                                                                                                   |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                                   |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                                                                                                                 |
|                                                                                                                                                                                   |
| CURRENT ASSETS:                                                                                                                                                                        |   |   |   |   |   |   |
|      Cash                                                                                                                                                     |   | $ | 3,117,787 |   |   | $ | 3,985,710 |   |
|      Accounts receivable, net of allowance for doubtful accounts of                                                                                           |   |   | 2,473,734 |   |   |   | 1,724,198 |   |
|          $3,382,900 and $2,575,177, respectively                                                                                          |   |   |   |   |   |   |   |   |
|      Loan receivable                                                                                                                                          |   |   | 483,076 |   |   |   | 748,790 |   |
|      Inventory                                                                                                                                                |   |   | 1,972,482 |   |   |   | 1,564,975 |   |
|      Deposits with suppliers                                                                                                                                  |   |   | 489,897 |   |   |   | 475,042 |   |
|      Prepaid expenses and sundry current assets                                                                                                               |   |   | 663,459 |   |   |   | 421,391 |   |
| TOTAL CURRENT ASSETS                                                                                                                                                                   |   |   | 9,200,435 |   |   |   | 8,920,106 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| LONG - TERM ASSETS                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Property and equipment, net of accummulated depreciation                                                                                                                               |   |   | 26,846,960 |   |   |   | 25,569,782 |   |
| Other intangible assets                                                                                                                                                                |   |   | 1,395,492 |   |   |   | 1,431,182 |   |
| Goodwill                                                                                                                                                                               |   |   | 19,601,196 |   |   |   | 19,012,321 |   |
| Deferred tax assets                                                                                                                                                                    |   |   | 4,066,317 |   |   |   | 3,394,103 |   |
| TOTAL LONG-TERM ASSETS                                                                                                                                                                 |   |   | 51,909,965 |   |   |   | 49,407,388 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                           |   | $ | 61,110,400 |   |   | $ | 58,327,494 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|      Short-Term borrowings                                                                                                                                    |   | $ | 228,307 |   |   | $ | 293,746 |   |
|      Accounts payable                                                                                                                                         |   |   | 3,674,917 |   |   |   | 2,965,514 |   |
|      Loans payable - bank                                                                                                                                     |   |   | 8,371,258 |   |   |   | 8,078,019 |   |
|      Current portion of long term debt - other                                                                                                                |   |   | 3,145,549 |   |   |   | 46,999 |   |
|      Current portion of long term debt - related parties                                                                                                      |   |   | 97,990 |   |   |   | 94,760 |   |
|      Accrued expenses and taxes payable and other sundry current liabilities                                                                                  |   |   | 3,002,776 |   |   |   | 2,076,555 |   |
|      Warrant and derivative liabilities                                                                                                                       |   |   | 69,943 |   |   |   | 1,913,534 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                              |   |   | 18,590,740 |   |   |   | 15,469,127 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT-- RELATED PARTIES                                                                                                                                                       |   |   | 6,558,871 |   |   |   | 6,329,118 |   |
|                              -- OTHER |   |   | 1,587,322 |   |   |   | 2,221,943 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Common stock, par value $0.001,                                                                                                                                                        |   |   | 46,513 |   |   |   | 46,495 |   |
|     100,000,000 shares authorized,                                                                                                                                 |   |   |   |   |   |   |   |   |
|      46,512,491 and 46,494, 903 shares issued and outstanding                                                                                                 |   |   |   |   |   |   |   |   |
|     on March 31,2011 and June 30, 2010, respectively                                                                                                               |   |   |   |   |   |   |   |   |
| Additional paid in capital                                                                                                                                                             |   |   | 50,050,796 |   |   |   | 49,594,553 |   |
| Accumulated deficit                                                                                                                                                                    |   |   | (16,815,907 | ) |   |   | (15,598,600 | ) |
| Other comprehensive income                                                                                                                                                             |   |   | 1,441,411 |   |   |   | 525,555 |   |
| TOTAL STOCKHOLDERS' EQUITY OF THE COMPANY                                                                                                                                              |   |   | 34,722,813 |   |   |   | 34,568,003 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| NONCONTROLLING INTEREST IN SUBSIDIARIES                                                                                                                                                |   |   | (349,346 | ) |   |   | (260,697 | ) |
| TOTAL EQUITY                                                                                                                                                                           |   |   | 34,373,467 |   |   |   | 34,307,306 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                             |   | $ | 61,110,400 |   |   | $ | 58,327,494 |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                            |   |
|-----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) |   |
| (Unaudited)                                                                 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   | For the three months ended |   |   | For the nine months ended |   |
|                                                                        |   | March 31, |   |   | March 31, |   |
|                                                                        |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| SALES                                                                       |   | $ | 1,628,627 |   |   | $ | 1,561,915 |   |   | $ | 5,309,839 |   |   | $ | 4,565,009 |   |
| COST OF SALES                                                               |   |   | 807,492 |   |   |   | 374,410 |   |   |   | 2,410,633 |   |   |   | 1,365,069 |   |
| GROSS PROFIT                                                                |   |   | 821,135 |   |   |   | 1,187,506 |   |   |   | 2,899,206 |   |   |   | 3,199,941 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Research and development expense                                |   |   | 70,362 |   |   |   | 314,069 |   |   |   | 347,760 |   |   |   | 506,133 |   |
|   General and administrative expenses                             |   |   | 1,364,117 |   |   |   | 916,912 |   |   |   | 3,520,353 |   |   |   | 2,619,899 |   |
|   Selling expenses                                                |   |   | 354,600 |   |   |   | 336,939 |   |   |   | 1,228,492 |   |   |   | 885,236 |   |
|   Depreciation and amortization                                   |   |   | 155,960 |   |   |   | 110,013 |   |   |   | 458,266 |   |   |   | 328,703 |   |
|       TOTAL COSTS AND EXPENSES                |   |   | 1,945,039 |   |   |   | 1,677,932 |   |   |   | 5,554,871 |   |   |   | 4,339,970 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                        |   |   | (1,123,904 | ) |   |   | (490,427 | ) |   |   | (2,655,665 | ) |   |   | (1,140,030 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest expense, net of interest income                        |   |   | (451,782 | ) |   |   | (502,785 | ) |   |   | (1,211,890 | ) |   |   | (1,545,940 | ) |
|   Change in fair value of warrant and derivative liabilities      |   |   | 726,567 |   |   |   | 574,438 |   |   |   | 1,843,590 |   |   |   | 3,055,971 |   |
|   Gain on foreign currency transactions                           |   |   | - |   |   |   | (8,274 | ) |   |   | - |   |   |   | (8,033 | ) |
|   Loss on disposal of assets                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (21,415 | ) |
|   Forgiveness of debt                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,579,085 |   |
|      TOTAL OTHER INCOME (EXPENSE)                  |   |   | 274,785 |   |   |   | 63,379 |   |   |   | 631,700 |   |   |   | 5,059,667 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                           |   |   | (849,119 | ) |   |   | (427,048 | ) |   |   | (2,023,965 | ) |   |   | 3,919,637 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes (credit)                                                       |   |   | (280,004 | ) |   |   | (595,870 | ) |   |   | (672,214 | ) |   |   | 615,445 |   |
| NET INCOME ( LOSS)                                                          |   |   | (569,115 | ) |   |   | 168,822 |   |   |   | (1,351,751 | ) |   |   | 3,304,192 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributed to non-controlling interest                             |   |   | (56,001 | ) |   |   | (24,764 | ) |   |   | (134,443 | ) |   |   | 123,044 |   |
| INCOME (LOSS) ATTRIBUTABLE TO THE SHAREHOLDERS OF THE COMPANY               |   |   | (513,114 | ) |   |   | 193,585 |   |   |   | (1,217,308 | ) |   |   | 3,181,148 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME ( LOSS) :                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustment                         |   |   | 91,017 |   |   |   | 26,426 |   |   |   | 961,649 |   |   |   | 36,360 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                                 |   |   | (422,097 | ) |   |   | 220,011 |   |   |   | (255,659 | ) |   |   | 3,217,508 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income attributable to non-controlling interest         |   |   | 4,334 |   |   |   | 1,321 |   |   |   | 45,793 |   |   |   | 1,818 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY                     |   | $ | (426,431 | ) |   | $ | 218,690 |   |   | $ | (301,452 | ) |   | $ | 3,215,690 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS (LOSSES) PER COMMON SHARE                        |   | $ | (0.01 | ) |   | $ | 0.00 |   |   | $ | (0.03 | ) |   | $ | 0.07 |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                               |   |   | 46,505,576 |   |   |   | 46,348,115 |   |   |   | 46,498,409 |   |   |   | 45,288,507 |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                   |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                              |   |
| (Unaudited)                                                                                        |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   | For the nine months ended |   |
|                                                                                               |   | March 31, |   |
|                                                                                               |   | 2011 |   |   | 2010 |   |
|                                                                                               |   |   |   |   |   |   |
| OPERATING ACTIVITIES:                                                                              |   |   |   |   |   |   |
|  Net income (loss)                                                                            |   | $ | (1,217,308 | ) |   | $ | 3,181,148 |   |
|   Adjustments to reconcile net loss to net cash used in operating activities:            |   |   |   |   |   |   |   |   |
|       Depreciation and amortization                                  |   |   | 875,303 |   |   |   | 878,408 |   |
|       Deferred tax assets                                            |   |   | (672,214 | ) |   |   | 615,445 |   |
|       Loss on desposal on assets                                     |   |   | - |   |   |   | 21,486 |   |
|       Forgiveness of debt                                            |   |   |   |   |   |   | (3,596,523 | ) |
|       Non-cash interest expense related to                           |   |   |   |   |   |   |   |   |
|           debentures and warrants                |   |   | - |   |   |   | 89,561 |   |
|       Stock issued for services                                      |   |   | 415,612 |   |   |   | 468,557 |   |
|       Change in fair value of warrants and derivative liability      |   |   | (1,843,590 | ) |   |   | (3,055,971 | ) |
|       Minority interest                                              |   |   | (134,443 | ) |   |   | 123,044 |   |
|   Changes in operating assets and liabilities:                                           |   |   |   |   |   |   |   |   |
|        Accounts receivable                                      |   |   | (675,273 | ) |   |   | (528,856 | ) |
|        Inventories                                              |   |   | (350,696 | ) |   |   | (1,017,006 | ) |
|        Prepaid expenses and sundry current assets               |   |   | (236,548 | ) |   |   | (950,790 | ) |
|        Accounts payable                                         |   |   | 601,753 |   |   |   | 91,855 |   |
|        Accrued expenses, taxes and sundry current liabilities   |   |   | 723,922 |   |   |   | 729,641 |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                              |   |   | (2,513,482 | ) |   |   | (2,950,001 | ) |
|                                                                                               |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |
|   Acquisition of property and equipment                                                  |   |   | (1,136,634 | ) |   |   | (1,223,014 | ) |
|   Repayment of loans to unrelated parties                                                |   |   | 292,896 |   |   |   | - |   |
|   Cash Proceeds from sale of assets                                                      |   |   | - |   |   |   | 950,626 |   |
| NET CASH USED IN INVESTING ACTIVITIES                                                              |   |   | (843,738 | ) |   |   | (272,388 | ) |
|                                                                                               |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                              |   |   |   |   |   |   |   |   |
|   Repayment of bank loan                                                                 |   |   | - |   |   |   | (4,271,529 | ) |
|   Short-term borrowings                                                                  |   |   | (76,102 | ) |   |   |   |   |
|   Other borrowings, net of repayments                                                    |   |   | 2,381,565 |   |   |   | 3,753,945 |   |
|   Loans from related party                                                               |   |   | - |   |   |   | 698,839 |   |
|   Sale of common stock                                                                   |   |   | - |   |   |   | 5,000,000 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                                          |   |   | 2,305,463 |   |   |   | 5,181,255 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                                                    |   |   | 183,834 |   |   |   | (18,131 | ) |
|                                                                                               |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH                                                                        |   |   | (867,923 | ) |   |   | 1,940,735 |   |
| CASH – BEGINNING OF YEAR                                                                     |   |   | 3,985,710 |   |   |   | 1,271,922 |   |
| CASH – END OF PERIOD                                                                         |   | $ | 3,117,787 |   |   | $ | 3,212,657 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                 |   |   |   |   |   |   |   |   |
|   Non-cash financing activities:                                                         |   |   |   |   |   |   |   |   |
|      Conversion of loan  and accrued interest into common stock |   | $ | - |   |   | $  | 4,830,847 |   |
|      Cash paid for interest                                               |   | $ | 879,437 |   |   | $ | 809,921 |   |
|      Cash paid for income taxes                                           |   | $ | - |   |   | $ | - |   |

----

----

----

----

| Estimated dividends     | None   |
|-------------------------|--------|
| Expected volatility     | 49.47% |
| Risk-free interest rate | 0.17%  |
| Expected term (years)   | 0.46   |

----

|            |   | March 31 |      |   | June 30 |   |
|-----------------|--------|----------|-----------|--------|---------|--------|
|            |   | 2011     |      |   | 2010    |   |
|            |   |     |      |   |    |   |
| Work in process |   | $        | 180,768   |   |    | $      | 119,327 |   |
| Raw materials   |   | $        | 1,294,484 |   |    | $      | 449,137 |   |
| Finished goods  |   |     | 497,230   |   |    |   | 996,511 |   |
|            |   | $        | 1,972,482 |   |    | $      | 1,564,975 |   |

----

|                                          |   | March 31 |      |   | June 30 |   |
|-----------------------------------------------|--------|----------|-----------|--------|---------|--------|
|                                          |   | 2011     |      |   | 2010    |   |
|                                          |   |     |      |   |    |   |
| Accrued salaries and benefits                 |   | $        | 569,604   |   |    | $      | 308,693 |   |
| Accrued interest                              |   |     | 1,442,162 |   |    |   | 1,073,890 |   |
| Accrued taxes                                 |   |     | 229,697   |   |    |   | 52,637 |   |
| Other accrued expenses and sundry liabilities |   |     | 761,313   |   |    |   | 641,335 |   |
|                                          |   | $        | 3,002,776 |   |    | $      | 2,076,555 |   |

|                                                                                                                                                                                                                                                                                                    |   | March 31 |      |   | June 30 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                    |   | 2011     |      |   | 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 and renewed in subsequent period that matures on April 15, 2012 |   | $        | 4,566,141 |   |    | $      | 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 and renewed in subsequent period that matures on April 20, 2012                   |   |     | 3,805,117 |   |    |   | 3,671,827 |   |
|                                                                                                                                                                                                                                                                                                    |   | $        | 8,371,258 |   |    | $      | 8,078,019 |   |

|                                                                                                                                             |   | March 31 |                   |   | June 30 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------------------|--------|---------|--------|
|                                                                                                                                             |   | 2011     |                   |   | 2010    |   |
| Loans payable bearing interest at rates ranging from 10% to 25.2% per annum and maturing in December 2012, February 2013, and April 2014         |   | $        | 1,587,322              |   |    | $      | 2,221,943 |   |
| Loans from unrelated third parties maturing on various dates from August 2011 to March 2012 and bearing interest at rates ranging from 6% to 18% |   |     |   3,145,549       |   |    |   |    46,999 |   |
|                                                                                                                                             |   |     | 4,732,871              |   |    |   | 2,268,942 |   |
| Less current portion                                                                                                                             |   |     |    3,145,579 |   |    |   |     46,999 |   |
|                                                                                                                                             |   | $        | 1,587,322              |   |    | $      | 2,221,943 |   |

----

|                                                                                                                      |   | March 31 |                |   | June 30 |    |
|---------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------------|--------|---------|---------|
|                                                                                                                      |   | 2011     |                |   | 2010    |    |
| Loans maturing on December 31, 2012 and April 28, 2014  bearing interest from  10% to 25.2% per annum |   | $        | 6,558,871           |   |    | $  | 6,329,118 |   |
| Loans maturing on August 17, 2011 bearing interest at an average rate of 10%                                              |   |     | 97,990              |   |    |    | 94,760 |   |
|                                                                                                                      |   |     | 6,656,861           |   |    |    | 6,423,878 |   |
| Less current portion                                                                                                      |   |     |    97,990 |   |    |    |   94,760 |   |
|                                                                                                                      |   | $        | 6,558,871           |   |    | $       | 6,329,118 |   |

|                                       |   | Nine months ended March 31, |     |
|--------------------------------------------|--------|-----------------------------|----------|
|                                       |   | 2011                        |     |   | 2010 |   |
|                                       |   |                        |     |   |   |   |
| U.S. Statutory rate                        |   | $                           | (708,388 | ) |   | $ | 1,371,873 |   |
| Tax rate difference between China and U.S. |   |                        | 268,886  |   |   |   | (245,865 | ) |
| Change in valuation allowance              |   |                        | (232,712 | ) |   |   | (510,563 | ) |
| Effective tax rate                         |   | $                           | (672,214 | ) |   | $ | 615,445 |   |

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|                          |   | Nine months ended March 31, |       |
|-------------------------------|--------|-----------------------------|------------|
|                          |   | 2011                        |       |   | 2010 |   |
|                          |   |                        |       |   |   |   |
| Deferred - United States      |   | $                           | 232,712.0  |   |   | $ | 510,563.0 |   |
| Deferred - China              |   |                        | (672,214.0 | ) |   |   | 615,445.0 |   |
| Change in valuation allowance |   |                        | (232,712.0 | ) |   |   | (510,563.0 | ) |
| Total                         |   | $                           | (672,214.0 | ) |   | $ | 615,445.0 |   |

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| Contractual Obligations |   | Total |       |   | < 1 Year |   |       | 1-3 Year |   |   | 4-5 Years |   |   | After 5 Years |   |
|-------------------------|--------|-------|------------|--------|-------------|--------|------------|----------|--------|--------|-----------|--------|--------|---------------|--------|
|  - Bank            |   | $     | 8,371,258  |   |        | $      | 8,371,258  |     |   | $      | --        |   |   | $             | --     |   |   | $ | -- |   |
|  - Related Party   |   | $     | 6,656,861  |   |        | $      | 97,990     |     |   | $      | 6,558,871 |   |   | $             | --     |   |   | $ | -- |   |
|  - Others          |   | $     | 4,732,871  |   |        | $      | 3,145,549  |     |   | $      | 1,587,322 |   |   | $             | --     |   |   | $ | -- |   |
|  - Short-term      |   | $     | 228,307    |   |        | $      | 228,307    |     |   | $      | --        |   |   | $             | --     |   |   | $ | -- |   |
| TOTAL                   |   | $     | 19,989,297 |   |        | $      | 11,843,104 |     |   | $      | 8,146,193 |   |   | $             | --     |   |   | $ | -- |   |

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| 3.1(i)  | Articles of Incorporation, as amended to date (filed as Exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010 and incorporated by reference herein) |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1(ii) | By-laws, as amended to date (filed as Exhibit to the Company's Current Report on Form 8-K filed on November 16, 2009 and incorporated herein by reference).                                     |
| 31.1    | Certification of Chief Executive Officer pursuant to Section 302 of the SOX of 2002.                                                                                                            |
| 31.2    | Certification of Chief Financial Officer pursuant to Section 302 of the SOX of 2002.                                                                                                            |
| 32.1    | Certificate of Chief Executive Officer pursuant to 18 U.S.C.ss.1350.                                                                                                                            |
| 32.2    | Certificate of Chief Financial Officer pursuant to 18 U.S.C.ss.1350.                                                                                                                            |

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|               | AOXING PHARMACEUTICAL COMPANY, INC.          |
|--------------------|----------------------------------------------|
|               |                                         |
| Date: May 16, 2011 | By: /s/ Zhenjiang Yue                        |
|               | Zhenjiang Yue, Chief Executive Officer       |
|               | (Principal Executive Officer)                |
|               |                                         |
| Date: May 16, 2011 | By: /s/ Bob Ai                               |
|               | Bob Ai, Chief Financial Officer              |
|               | (Principal Accounting and Financial Officer) |

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