----

| [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 ID Number) |

----

|       |                                                                                                                                                          | Page No |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Part I     | Financial Information                                                                                                                                         |    |
|       |                                                                                                                                                          |    |
| Item 1.    | Financial Statements:                                                                                                                                         |    |
|       |                                                                                                                                                          |    |
|       | Consolidated Balance Sheet – December 31, 2016 (unaudited) and June 30, 2016                                                                            | 2       |
|       |                                                                                                                                                          |    |
|       | Consolidated Statements of Operations and Other Comprehensive Income (Loss) – for the Three and Six Months Ended December 31, 2016 and 2015 (Unaudited) | 3       |
|       |                                                                                                                                                          |    |
|       | Consolidated Statements of Cash Flows – for the Six Months Ended December 31, 2016 and 2015 (Unaudited)                                                 | 4       |
|       |                                                                                                                                                          |    |
|       | Notes to Consolidated Financial Statements (Unaudited)                                                                                                        | 5       |
|       |                                                                                                                                                          |    |
| Item 2.    | Management's Discussion and Analysis of Financial Condition and  Results of Operations                                                                   | 15      |
|       |                                                                                                                                                          |    |
| Item 3     | Quantitative and Qualitative Disclosures about Market Risk                                                                                                    | 19      |
|       |                                                                                                                                                          |    |
| Item 4.    | Controls and Procedures                                                                                                                                       | 19      |
|       |                                                                                                                                                          |    |
| Part II    | Other Information                                                                                                                                             |    |
|       |                                                                                                                                                          |    |
| Item 1A    | Risk Factors                                                                                                                                                  | 19      |
|       |                                                                                                                                                          |    |
| Item 2     | Unregistered Sale of Securities and Use of Proceeds                                                                                                           | 19      |
|       |                                                                                                                                                          |    |
| Item 3     | Defaults Upon Senior Securities                                                                                                                               | 19      |
|       |                                                                                                                                                          |    |
| Item 4     | Mine Safety Disclosures                                                                                                                                       | 19      |
|       |                                                                                                                                                          |    |
| Item 5     | Other Information                                                                                                                                             | 19      |
|       |                                                                                                                                                          |    |
| Item 6     | Exhibits                                                                                                                                                      | 20      |
|       |                                                                                                                                                          |    |
| Signatures |                                                                                                                                                          | 21      |

----

|                                                                                                                                                 |   | December 31, |        |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|----------|--------|
|                                                                                                                                                 |   | 2016         |        |   | 2016     |   |
|   ASSETS                                                                                                                                        |   | (Unaudited)  |        |   |     |   |
| CURRENT ASSETS:                                                                                                                                      |   |         |        |   |     |   |
| Cash and cash equivalents                                                                                                                            |   | $            | 6,848,691   |   |     |   | 6,912,100 |   |
| Accounts receivable, net                                                                                                                             |   |         | 12,845,837  |   |     |   | 10,435,101 |   |
| Notes receivable, net                                                                                                                                |   |         | 792,395     |   |     |   | 765,317 |   |
| Inventories, net                                                                                                                                     |   |         | 2,043,681   |   |     |   | 2,841,690 |   |
| Prepaid expenses and other current assets                                                                                                            |   |         | 8,307,919   |   |     |   | 5,912,555 |   |
| TOTAL CURRENT ASSETS                                                                                                                                 |   |         | 30,838,523  |   |     |   | 26,866,763 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| LONG-TERM ASSETS:                                                                                                                                    |   |         |        |   |     |   |   |   |
| Property and equipment, net of accumulated depreciation                                                                                              |   |         | 24,065,526  |   |     |   | 25,603,734 |   |
| Deferred income tax                                                                                                                                  |   |         | 2,002,886   |   |     |   | 1,878,595 |   |
| Other intangible assets, net                                                                                                                         |   |         | 1,817,553   |   |     |   | 1,878,299 |   |
| Investment in joint venture                                                                                                                          |   |         | -           |   |     |   | 4,200 |   |
| TOTAL LONG-TERM ASSETS                                                                                                                               |   |         | 27,885,965  |   |     |   | 29,364,828 |   |
| TOTAL ASSETS                                                                                                                                         |   | $            | 58,724,488  |   |     |   | 56,231,591 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                 |   |         |        |   |     |   |   |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                 |   |         |        |   |     |   |   |   |
| Short-term borrowings                                                                                                                                |   | $            | 10,519,951  |   |     |   | 11,070,966 |   |
| Accounts payable                                                                                                                                     |   |         | 3,759,101   |   |     |   | 2,709,819 |   |
| Loan payable – bank                                                                                                                            |   |         | 13,769,373  |   |     |   | 14,372,630 |   |
| Current portion of loan payable - related parties                                                                                                    |   |         | --          |   |     |   | 13,317 |   |
| Current portion of loan payable – others                                                                                                       |   |         | --          |   |     |   | 15,048 |   |
| Accrued expenses and other current liabilities                                                                                                       |   |         | 12,462,633  |   |     |   | 9,633,750 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                            |   |         | 40,511,058  |   |     |   | 37,815,530 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| LONG-TERM LIABILITIES:                                                                                                                               |   |         |        |   |     |   |   |   |
| Loan payable - related parties                                                                                                                       |   |         | 12,992      |   |     |   |   |   |
| Loan payable – others                                                                                                                          |   |         | 86,382      |   |     |   |   |   |
| Deferred income                                                                                                                                      |   |         | 308,563     |   |     |   | 340,089 |   |
| TOTAL LONG-TERM LIABILITIES                                                                                                                          |   |         | 407,937     |   |     |   | 340,089 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| Common stock, par value $0.001, 100,000,000 shares authorized, 76,209,195  shares issued and outstanding on December 31, 2016 and June 30, 2016 |   |         | 76,209      |   |     |   | 76,209 |   |
| Additional paid in capital                                                                                                                           |   |         | 73,642,951  |   |     |   | 73,629,751 |   |
| Accumulated deficit                                                                                                                                  |   |         | (55,991,118 | )      |     |   | (56,293,745 | ) |
| Accumulated other comprehensive income                                                                                                               |   |         | 1,116,743   |   |     |   | 1,723,740 |   |
| TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY                                                                                                            |   |         | 18,844,785  |   |     |   | 19,135,955 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| NONCONTROLLING INTEREST IN SUBSIDIARIES                                                                                                              |   |         | (1,039,292  | )      |     |   | (1,059,983 | ) |
| TOTAL EQUITY                                                                                                                                         |   |         | 17,805,493  |   |     |   | 18,075,972 |   |
|                                                                                                                                                 |   |         |        |   |     |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                           |   | $            | 58,724,488  |   |     |   | 56,231,591 |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                            |   |
|-----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) |   |
| (Unaudited)                                                                 |   |
|                                                                        |   |
|                                                                        |   | For the three months ended |   |   | For the six months ended |   |
|                                                                        |   | December 31, |   |   | December 31, |   |
|                                                                        |   | 2016 |   |   | 2015 |   |   | 2016 |   |   | 2015 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| SALES                                                                       |   | $ | 8,009,111 |   |   | $ | 8,195,839 |   |   | $ | 15,578,407 |   |   | $ | 16,940,661 |   |
| COST OF SALES                                                               |   |   | 1,712,635 |   |   |   | 1,726,592 |   |   |   | 3,227,567 |   |   |   | 3,484,671 |   |
| GROSS PROFIT                                                                |   |   | 6,296,476 |   |   |   | 6,469,246 |   |   |   | 12,350,840 |   |   |   | 13,455,990 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Research and development expense                                |   |   | 76,403 |   |   |   | 830,105 |   |   |   | 453,690 |   |   |   | 1,207,411 |   |
|   General and administrative expenses                             |   |   | 2,924,210 |   |   |   | 511,127 |   |   |   | 4,200,930 |   |   |   | 1,455,485 |   |
|   Selling expenses                                                |   |   | 2,943,455 |   |   |   | 1,589,866 |   |   |   | 5,520,821 |   |   |   | 3,984,212 |   |
|   Depreciation and amortization                                   |   |   | 119,212 |   |   |   | 128,126 |   |   |   | 238,697 |   |   |   | 259,656 |   |
|       TOTAL OPERATING EXPENSES                |   |   | 6,063,280 |   |   |   | 3,059,224 |   |   |   | 10,414,138 |   |   |   | 6,906,764 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS                                                      |   |   | 233,196 |   |   |   | 3,410,023 |   |   |   | 1,936,702 |   |   |   | 6,549,225 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest expense, net of interest income                        |   |   | (640,399 | ) |   |   | (979,906 | ) |   |   | (1,296,885 | ) |   |   | (1,908,936 | ) |
|   Gain on foreign currency transactions                           |   |   | 0 |   |   |   | 24,753 |   |   |   | 0 |   |   |   | 83,345 |   |
|   Equity in loss of joint venture, net                            |   |   | 52 |   |   |   | (14,474 | ) |   |   | (4,134 | ) |   |   | (38,765 | ) |
|   Subsidy income                                                  |   |   | 17,294 |   |   |   | 157,266 |   |   |   | 17,294 |   |   |   | 205,027 |   |
|      TOTAL OTHER EXPENSE                           |   |   | (623,053 | ) |   |   | (812,362 | ) |   |   | (1,283,725 | ) |   |   | (1,659,329 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                                                  |   |   | (389,857 | ) |   |   | 2,597,661 |   |   |   | 652,977 |   |   |   | 4,889,897 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                                |   |   | (356,897 | ) |   |   | 409,393 |   |   |   | 294,180 |   |   |   | 1,353,196 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                           |   |   | (32,960 | ) |   |   | 2,188,268 |   |   |   | 358,797 |   |   |   | 3,536,700 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributed to non-controlling interest in subsidiaries           |   |   | 10,493 |   |   |   | 119,633 |   |   |   | 56,170 |   |   |   | 200,129 |   |
| INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY                          |   |   | (43,453 | ) |   |   | 2,068,635 |   |   |   | 302,627 |   |   |   | 3,336,571 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE LOSS:                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustment                         |   |   | (681,570 | ) |   |   | (753,581 | ) |   |   | (709,591 | ) |   |   | (1,423,572 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                                 |   |   | (714,530 | ) |   |   | 1,315,054 |   |   |   | (350,793 | ) |   |   | 1,912,999 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss attributable to non-controlling interest           |   |   | (34,078 | ) |   |   | (37,679 | ) |   |   | (35,480 | ) |   |   | (71,179 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY                            |   | $ | (680,452 | ) |   | $ | 1,352,733 |   |   | $ | (315,313 | ) |   | $ | 1,984,178 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS PER SHARE                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                       |   | $ | (0.00 | ) |   | $ | 0.03 |   |   | $ | 0.00 |   |   | $ | 0.05 |   |
| Diluted                                                                     |   | $ | (0.00 | ) |   | $ | 0.03 |   |   | $ | 0.00 |   |   | $ | 0.05 |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                       |   |   | 76,209,195 |   |   |   | 73,097,698 |   |   |   | 76,209,195 |   |   |   | 71,475,000 |   |
| Diluted                                                                     |   |   | 76,209,195 |   |   |   | 73,177,698 |   |   |   | 76,209,195 |   |   |   | 71,555,000 |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES             |   |
|-----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                        |   |
| (Unaudited)                                                  |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   | For the Six Months Ended |   |
|                                                                        |   | December 31, |   |
|                                                                        |   | 2016 |   |   | 2015 |   |
|                                                                        |   |   |   |   |   |
| OPERATING ACTIVITIES:                                                       |   |   |   |   |   |   |
| Net income                                                                  |   | $ | 302,627 |   |   | $ | 3,336,571 |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                               |   |   | 496,706 |   |   |   | 528,874 |   |
| Deferred income tax                                                         |   |   | (211,484 | ) |   |   | 1,269,851 |   |
| Bad debts written off                                                       |   |   | 2,979,245 |   |   |   | 2,074 |   |
| Common stock issued for services                                            |   |   | 34,414 |   |   |   | 145,600 |   |
| Equity in loss of joint venture, net of tax                                 |   |   | 4,133 |   |   |   | 38,765 |   |
| Net loss attributable to non-controlling interests                          |   |   | 56,171 |   |   |   | 200,129 |   |
| Changes in operating assets and liabilities:                                |   |   |   |   |   |   |   |   |
| Accounts receivable                                                         |   |   | (5,985,664 | ) |   |   | (1,103,518 | ) |
| Inventories                                                                 |   |   | 694,449 |   |   |   | (862,624 | ) |
| Prepaid expenses and other current assets                                   |   |   | (2,661,856 | ) |   |   | (1,981,785 | ) |
| Accounts payable                                                            |   |   | 1,200,053 |   |   |   | (2,676,621 | ) |
| Accrued expenses and other current liabilities                              |   |   | 3,331,374 |   |   |   | 387,829 |   |
| Deferred income                                                             |   |   | (17,294 | ) |   |   | - |   |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                         |   |   | 222,874 |   |   |   | (714,855 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |
| Acquisition of property and equipment                                       |   |   | (8,772 | ) |   |   | (90,507 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                       |   |   | (8,772 | ) |   |   | (90,507 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |
| Proceeds from/(Repayment of) bank loan                                      |   |   | - |   |   |   | (473,140 | ) |
| Repayment of short – term borrowings                                  |   |   | - |   |   |   | (763,982 | ) |
| Proceeds from loans from related party                                      |   |   | - |   |   |   | 1,362,643 |   |
| Sale of common stock                                                        |   |   |   |   |   |   | 2,739,000 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                   |   |   | - |   |   |   | 2,864,521 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                             |   |   | (277,511 | ) |   |   | (995,342 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH                                                 |   |   | (63,409 | ) |   |   | 1,063,817 |   |
| CASH – BEGINNING OF PERIOD                                            |   |   | 6,912,100 |   |   |   | 5,371,545 |   |
| CASH – END OF PERIOD                                                  |   | $ | 6,848,691 |   |   | $ | 6,435,362 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                          |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                      |   | $ | 347,154 |   |   | $ | 2,113,180 |   |
| Cash paid for income taxes                                                  |   | $ | - |   |   | $ | - |   |
| Debt extinguishment using stock                                             |   | $ | - |   |   | $ | 2,662,597 |   |

----

----

| Registration and Trademark     |   |                   |      |   |          |   |
|--------------------------------|--------|------------------------|-----------|--------|---------------|--------|
|                           |   | December 31, 2016 |      |   | June 30, 2016 |   |
| Cost Basis                     |   | $                      | 1,646,523 |   |          | $      | 1,720,988 |   |
| Less: accumulated amortization |   |                   | 1,321,102 |   |          |   | 1,332,689 |   |
|                           |   |                   | 325,421   |   |          |   | 388,299 |   |
|                           |   |                   |      |   |          |   |   |   |
| Software                       |   |                   |      |   |          |   |   |   |
|                           |   | December 31, 2016      |      |   | June 30, 2016 |   |
| Cost Basis                     |   |                   | 30,429    |   |          |   | 12,887 |   |
| Less: accumulated amortization |   |                   | 28,297    |   |          |   | 12,887 |   |
|                           |   |                   | 2,132     |   |          |   | 0 |   |
|                           |   |                   |      |   |          |   |   |   |
| Total intangibles, net         |   | $                      | 327,553,  |   |          | $      | 388,299 |   |

|                |   | Amount          |    |
|---------------------|--------|-----------------|---------|
| 2017                |   | $               | 46,344  |   |
| 2018                |   |   92,687 |    |
| 2019                |   |   90,384 |    |
| 2020                |   |            | 90,384  |   |
| 2021 and thereafter |   |  7,754   |    |
|              |   | $               | 327,553 |   |

----

----

----

----

|             | December 31, |   | June 30,  |   |
|------------------|--------------|--------|-----------|--------|
|             | 2016         |   | 2016      |   |
|             |         |   |      |   |
| Work in process  |         | $      | 317,678   |   |   | $ | 568,876 |   |
| Raw materials    |         |   | 558,065   |   |   |   | 805,024 |   |
| Finished goods   |         |   | 1,150,816 |   |   |   | 1,467,790 |   |
| Goods in transit |         |   | 17,122    |   |   |   | - |   |
|             |         | $      | 2,043,681 |   |   | $ | 2,841,690 |   |

|                                |   | December 31, 2016      |     |   | June 30, 2016     |   |
|-------------------------------------|--------|------------------------|----------|--------|-------------------|--------|
|  Current assets                |   | $                      | 11,072   |   |              | $      | 9,602 |   |
|  Noncurrent assets             |   |  604,275        |     |   |   654,213  |   |
|  Current liabilities           |   | $                      | 735,550  |   |              | $      | 710,148 |   |
|  Noncurrent liabilities        |   |  -              |     |   |   -        |   |
|  Equity                        |   | $                      | (120,203 | )      |              | $      | (46,333 | ) |
|                                |   |                   |     |   |              |   |   |   |
|                                |   | Quarter Ended          |     |   | Quarter Ended     |   |
|                                |   | December 31, 2016 |     |   | December 31, 2015 |   |
| Revenue                             |   |                   | -        |   |              |   | - |   |
| General and administrative expenses |   | $                      | 78,055   |   |              | $      | 166,229 |   |
| Net loss                            |   | $                      | (78,055  | )      |              | $      | (166,229 | ) |

|                                           |   | December 31, |       |   | June 30, |   |
|------------------------------------------------|--------|--------------|------------|--------|----------|--------|
|                                           |   | 2016         |       |   | 2016     |   |
|                                           |   |         |       |   |     |   |
| Accrued salaries and benefits                  |   | $            | 1,124,575  |   |     | $      | 1,168,653 |   |
| Accrued interest                               |   |         | 3,347,531  |   |     |   | 2,602,674 |   |
| Accrued taxes                                  |   |         | 3,596,635  |   |     |   | 2,619,533 |   |
| Deposit payable                                |   |         | 562,333    |   |     |   | 588,905 |   |
| Due to employee                                |   |         | 41,442     |   |     |   | 43,316 |   |
| Advance from customers                         |   |         | 334,819    |   |     |   | 413,848 |   |
| Other accounts payable                         |   |         | 693,825    |   |     |   | 572,013 |   |
| Other accrued expenses and current liabilities |   |         | 2,761,473  |   |     |   | 1,624,808 |   |
|                                           |   | $            | 12,462,633 |   |     | $      | 9,633,750 |   |

----

|                                                    |   | December 31, |       |   | June 30, |   |
|---------------------------------------------------------|--------|--------------|------------|--------|----------|--------|
|                                                    |   | 2016         |       |   | 2016     |   |
| Shijiazhuang Finance Bureau (a)                         |   | $            | -          |   |     | $      | 75,241 |   |
| Shijiazhuang Construction Investment Group Co., Ltd (b) |   |         | 4,607,067  |   |     |   | 4,815,426 |   |
| Hebei Henghui Investment Management Co., Ltd (c)        |   |         | 2,025,670  |   |     |   | 2,117,283 |   |
| TianJin Heng Xing Mirco Finance Bureau (d)              |   |         | 3,599,272  |   |     |   | 3,762,052 |   |
| Xinle SASAC Office (e)                                  |   |         | 287,942    |   |     |   | 300,964 |   |
| Total                                                   |   | $            | 10,519,951 |   |     | $      | 11,070,966 |   |

|                                                                                                                                                                                                                                      |   | December 31, |       |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|
|                                                                                                                                                                                                                                      |   | 2016         |       |   | 2016     |   |
| Bank Note in the amount of 30 million RMB with Shijiazhuang Huirong Rural Cooperative Bank bearing an annual interest rate of 10% made on September 23, 2014. The note matured on November 22, 2014 and was extended to June 7, 2017 |   | $            | 4,319,126  |   |     | $      | 4,514,462 |   |
| Bank Note in the amount of 25.7 million RMB with Postal Savings Bank bearing an annual interest rate of 6.09%, made on July 22, 2014 for one year maturing on July 21, 2015 and was extended to April 6, 2017.                            |   |         | 3,692,853  |   |     |   | 3,859,865 |   |
| Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of 5.98%, initially made on December 27, 2013 and extended to April 4, 2017.                                                      |   | $            | 2,879,417  |   |     | $      | 2,991,584 |   |
| Bank Note in the amount of 19.9 million RMB with China Everbright Bank bearing 5.655% interest per annum made on January 16, 2015 for one year maturing on January 15, 2016 and was extended to February 24, 2017.                        |   |         | 2,877,977  |   |     |   | 3,006,719 |   |
|                                                                                                                                                                                                                                      |   | $            | 13,769,373 |   |     | $      | 14,372,630 |   |

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|                                  |   | As of December 31, 2016 |
|---------------------------------------|--------|-------------------------|
|                                  |   | Investor                |
| Stock price                           |   | $                       | 0.56 |   |
| Exercise price                        |   | $                       | 1.74 |   |
| Expected life in years                |   | $                       | 3.70 |   |
| Annualized Volatility                 |   |                    | 126.81 | % |
| Annual Rate of Quarterly Dividends    |   |                    | 0 |   |
| Discount Rate - Bond Equivalent Yield |   |                    | 1.14 |   |

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|                                       |   | Six months EndedDecember 31, |     |
|--------------------------------------------|--------|------------------------------|----------|
|                                       |   | 2016                         |     |   | 2015 |   |
|                                       |   |                         |     |   |   |   |
| Tax at U.S. Statutory rate                 |   | $                            | 228,542  |   |   | $ | 1,711,464 |   |
| Tax rate difference between China and U.S. |   |                         | (500,227 | ) |   |   | (1,509,717 | ) |
| Change in Valuation Allowance              |   |                         | 267,064  |   |   |   | (248,584 | ) |
| Net operating loss expired                 |   |                         | -        |   |   |   | - |   |
| Stock and option compensation              |   |                         | 4,620    |   |   |   | 46,838 |   |
| Impairment loss on goodwill                |   |                         | -        |   |   |   | - |   |
| Effective tax rate                         |   | $                            | -        |   |   | $ | - |   |

|                              |   | Six months Ended December 31, |     |
|-----------------------------------|--------|-------------------------------|----------|
|                              |   | 2016                          |     |   | 2015 |   |
|                              |   |                          |     |   |   |   |
| Current                           |   | $                             | 418,471  |   |   | $ | - |   |
| Deferred - U.S.                   |   |                          | (267,615 | ) |   |   |   |   |
| Deferred – China            |   |                          | (123,741 | ) |   |   | 1,601,781 |   |
| Valuation allowance - U.S.        |   |                          | 267,615  |   |   |   |   |   |
| Valuation allowance – China |   |                          | (550     | ) |   |   | (248,584 | ) |
| Total                             |   | $                             | 294,180  |   |   | $ | 1,353,197 |   |

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|                                                                                    |   | Six months Ended December 31, |       |
|-----------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                                    |   | 2016                          |       |   | 2015 |   |
| Net operating loss carryforward - China                                                 |   | $                             | 12,163     |   |   | $ | 561,834 |   |
| Net operating loss carryforward - US                                                    |   |                          | 2,686,524  |   |   |   | 1,889,794 |   |
| Allowance for doubtful accounts and inventory                                           |   |                          | 800,867    |   |   |   | 488,157 |   |
| Others                                                                                  |   |                          | 1,202,019  |   |   |   | 282,545 |   |
|                                                                                    |   |                          | 4,701,573  |   |   |   | 3,222,330 |   |
| Less: valuation allowance- U.S.                                                         |   |                          | (2,686,524 | ) |   |   | (1,889,794 | ) |
|           valuation allowance- China. |   |                          | (12,163    | ) |   |   | (13,012 | ) |
| Deferred tax assets                                                                     |   |                          | 2,002,886  |   |   |   | 1,319,524 |   |

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| (a) | Unregistered sales of equity securities |
|-----|-----------------------------------------|

| (c) | Purchases of equity securities |
|-----|--------------------------------|

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| 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.                 |
|    |                                                                                 |
| 101 INS | XBRL Instance Document*                                                              |
|    |                                                                                 |
| 101 SCH | XBRL Schema Document*                                                                |
|    |                                                                                 |
| 101 CAL | XBRL Calculation Linkbase Document*                                                  |
|    |                                                                                 |
| 101 DEF | XBRL Definition Linkbase Document*                                                   |
|    |                                                                                 |
| 101 LAB | XBRL Labels Linkbase Document*                                                       |
|    |                                                                                 |
| 101 PRE | XBRL Presentation Linkbase Document*                                                 |

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|                    | AOXING PHARMACEUTICAL COMPANY, INC.                |
|-------------------------|----------------------------------------------------|
|                    |                                               |
| Date: February 14, 2017 | By: /s/ Zhenjiang Yue                              |
|                    | Zhenjiang Yue, Chief Executive Officer             |
|                    |  (Principal Executive Officer)                |
|                    |                                               |
| Date: February 14, 2017 | By: /s/ Zheng James Chen                           |
|                    | Zheng James Chen, Chief Financial Officer          |
|                    |  (Principal Accounting and Financial Officer) |

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