----

----

| [X]    | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                         |
|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |
|   | For the quarterly period ended December 31, 2010                                                          |
|   |                                                                                                      |
| [ ]    | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                        |
|   |           For the transition period from _____ to _____ |

|                    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 – December 31, 2010 (unaudited) and                                |    |
|       |      June 30, 2009                                                         | 2       |
|       | Consolidated Statements of Operations and Other Comprehensive                                  |    |
|       |      Income (Loss) – for the Three and Six Months Ended December 31, |    |
|       |     2010 and 2009 (Unaudited)                                                   | 3       |
|       | Consolidated Statements of Cash Flows – for the Six Months                                    |    |
|       |      Ended December 31, 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                                                 | 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                                                                                   | 16      |
| Items 1A.  | Risk Factors                                                                                        | 16      |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                         | 17      |
| Item 6.    | Exhibits                                                                                            | 17      |
| Signatures |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                                                                                                                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                       |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                                                                                              |   | December |   |   | June |   |
|                                                                                                                                                                                                                              |   | 2010 |   |   | 2010 |   |
|                                                                                                                                                                                                                              |   | (Unaudited) |   |   |   |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                                            |
| CURRENT ASSETS:                                                                                                                                                                                                                   |   |   |   |   |   |   |
|      Cash                                                                                                                                                                                                |   | $ | 2,808,746 |   |   | $ | 3,985,710 |   |
|      Accounts receivable, net of allowance for doubtful accounts of $3,112,168 and $2,575,177, respectively                                                                                              |   |   | 2,237,217 |   |   |   | 1,724,198 |   |
|      Loan receivable                                                                                                                                                                                     |   |   | 480,029 |   |   |   | 748,790 |   |
|      Inventory                                                                                                                                                                                           |   |   | 1,622,431 |   |   |   | 1,564,975 |   |
|      Deposits with suppliers                                                                                                                                                                             |   |   | 459,224 |   |   |   | 475,042 |   |
|      Prepaid expenses and sundry current assets                                                                                                                                                          |   |   | 605,710 |   |   |   | 421,391 |   |
| TOTAL CURRENT ASSETS                                                                                                                                                                                                              |   |   | 8,213,357 |   |   |   | 8,920,106 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| LONG - TERM ASSETS                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|      Property and equipment, net of accummulated depreciation                                                                                                                                                 |   |   | 26,856,493 |   |   |   | 25,569,782 |   |
|      Other intangible assets                                                                                                                                                                                  |   |   | 1,415,721 |   |   |   | 1,431,182 |   |
|      Goodwill                                                                                                                                                                                                 |   |   | 19,495,171 |   |   |   | 19,012,321 |   |
|      Deferred tax assets                                                                                                                                                                                      |   |   | 3,786,313 |   |   |   | 3,394,103 |   |
| TOTAL LONG-TERM ASSETS                                                                                                                                                                                                            |   |   | 51,553,698 |   |   |   | 49,407,388 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                                                      |   | $ | 59,767,055 |   |   | $ | 58,327,494 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                              |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|      Short-Term borrowings                                                                                                                                                                               |   | $ | 983,091 |   |   | $ | 293,746 |   |
|      Accounts payable                                                                                                                                                                                    |   |   | 3,502,815 |   |   |   | 2,965,514 |   |
|      Current portion of long term debt - other                                                                                                                                                           |   |   | 102,846 |   |   |   | 46,999 |   |
|      Current portion of long term debt - related parties                                                                                                                                                 |   |   | 146,865 |   |   |   | 94,760 |   |
|      Accrued expenses and taxes payable and other sundry current liabilities                                                                                                                             |   |   | 2,459,485 |   |   |   | 2,076,555 |   |
|      Loan payable - Bank                                                                                                                                                                                 |   |   | 8,318,461 |   |   |   | 8,078,019 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                         |   |   | 15,513,563 |   |   |   | 13,555,593 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT-- RELATED PARTIES                                                                                                                                                                                                  |   |   | 6,517,505 |   |   |   | 6,329,118 |   |
|                                      -- OTHER |   |   | 2,272,954 |   |   |   | 2,221,943 |   |
| WARRANT AND DERIVATIVE LIABILITIES                                                                                                                                                                                                |   |   | 796,511 |   |   |   | 1,913,534 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common stock, par value $0.001, 100,000,000 shares authorized, 46,502,108 and 46,494, 903 shares issued and outstanding at December 31,2010 and June 30, 2010, respectively                                                       |   |   | 46,502 |   |   |   | 46,495 |   |
| Additional paid in capital                                                                                                                                                                                                        |   |   | 49,865,766 |   |   |   | 49,594,553 |   |
| Accumulated deficit                                                                                                                                                                                                               |   |   | (16,302,794 | ) |   |   | (15,598,600 | ) |
| Other comprehensive income                                                                                                                                                                                                        |   |   | 1,354,728 |   |   |   | 525,555 |   |
| TOTAL STOCKHOLDERS' EQUITY OF THE COMPANY                                                                                                                                                                                         |   |   | 34,964,202 |   |   |   | 34,568,003 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| NONCONTROLLING INTEREST IN SUBSIDIARIES                                                                                                                                                                                           |   |   | (297,680 | ) |   |   | (260,697 | ) |
| TOTAL EQUITY                                                                                                                                                                                                                      |   |   | 34,666,522 |   |   |   | 34,307,306 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                        |   | $ | 59,767,055 |   |   | $ | 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 six months ended |   |
|                                                                        |   | December 31, |   |   | December 31, |   |
|                                                                        |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| SALES                                                                       |   | $ | 1,940,539 |   |   | $  | 1,556,431 |   |   | $  | 3,681,212 |   |   | $ | 3,003,094 |   |
| COST OF SALES                                                               |   |   | 775,846 |   |   |   | 540,516 |   |   |   | 1,603,141 |   |   |   | 990,659 |   |
| GROSS PROFIT                                                                |   |   | 1,164,693 |   |   |   | 1,015,915 |   |   |   | 2,078,071 |   |   |   | 2,012,435 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Research and development expense                                |   |   | 191,950 |   |   |   | 78,761 |   |   |   | 277,398 |   |   |   | 192,064 |   |
|   General and administrative expenses                             |   |   | 1,247,180 |   |   |   | 825,503 |   |   |   | 2,156,236 |   |   |   | 1,702,987 |   |
|   Selling expenses                                                |   |   | 362,071 |   |   |   | 287,404 |   |   |   | 873,892 |   |   |   | 548,297 |   |
|   Depreciation and amortization                                   |   |   | 150,262 |   |   |   | 109,473 |   |   |   | 302,306 |   |   |   | 218,690 |   |
|       TOTAL COSTS AND EXPENSES                |   |   | 1,951,463 |   |   |   | 1,301,141 |   |   |   | 3,609,832 |   |   |   | 2,662,038 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                        |   |   | (786,770 | ) |   |   | (285,226 | ) |   |   | (1,531,761 | ) |   |   | (649,603 | ) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest expense, net of interest income                        |   |   | (385,327 | ) |   |   | (451,070 | ) |   |   | (760,108 | ) |   |   | (1,043,155 | ) |
|   Change in fair value of warrant and derivative liabilities      |   |   | 894,306 |   |   |   | 4,623,692 |   |   |   | 1,117,023 |   |   |   | 2,481,533 |   |
|   Gain on foreign currency transactions                           |   |   | 0 |   |   |   | 241 |   |   |   | 0 |   |   |   | 241 |   |
|   Loss on disposal of assets                                      |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | (21,415 | ) |
|   Forgiveness of debt                                             |   |   | 0 |   |   |   | 3,579,085 |   |   |   | 0 |   |   |   | 3,579,085 |   |
|      TOTAL OTHER INCOME (EXPENSE)                  |   |   | 508,979 |   |   |   | 7,751,948 |   |   |   | 356,915 |   |   |   | 4,996,289 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                           |   |   | (277,791 | ) |   |   | 7,466,722 |   |   |   | (1,174,846 | ) |   |   | 4,346,686 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes (credit)                                                       |   |   | (189,613 | ) |   |   | 2,020,568 |   |   |   | (392,210 | ) |   |   | 1,211,315 |   |
| NET INCOME ( LOSS)                                                          |   |   | (88,178 | ) |   |   | 5,446,154 |   |   |   | (782,636 | ) |   |   | 3,135,371 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributed to non-controlling interest                           |   |   | (37,923 | ) |   |   | 163,984 |   |   |   | (78,442 | ) |   |   | 147,808 |   |
| INCOME (LOSS) ATTRIBUTABLE TO THE SHAREHOLDERS OF THE COMPANY               |   |   | (50,255 | ) |   |   | 5,282,170 |   |   |   | (704,194 | ) |   |   | 2,987,563 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME ( LOSS) :                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustment                         |   |   | 649,958 |   |   |   | (27,744 | ) |   |   | 870,632 |   |   |   | 9,934 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                                 |   | $ | 599,703 |   |   | $ | 5,254,426 |   |   | $ | 166,438 |   |   | $ | 2,997,497 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income attributable to non-controlling interest         |   |   | 30,950 |   |   |   | 0 |   |   |   | 41,459 |   |   |   | 0 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY                     |   | $ | 568,753 |   |   | $ | 5,254,426 |   |   | $ | 124,979 |   |   | $ | 2,997,497 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS (LOSSES) PER COMMON SHARE                        |   |   | 0.01 |   |   |   | 0.06 |   |   |   | 0.00 |   |   |   | 0.03 |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                               |   |   | 46,494,981 |   |   |   | 91,669,562 |   |   |   | 46,494,942 |   |   |   | 89,540,442 |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                                |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                           |   |
| (Unaudited)                                                                                                     |   |
|                                                                                                            |   |   |   |   |   |   |
|                                                                                                            |   | For the six months ended |   |
|                                                                                                            |   | December 31, |   |
|                                                                                                            |   | 2010 |   |   | 2009 |   |
|                                                                                                            |   |   |   |   |   |   |
| OPERATING ACTIVITIES:                                                                                           |   |   |   |   |   |   |
|  Net income (loss)                                                                                         |   | $ | (704,194 | ) |   | $ | 2,987,563 |   |
|    Adjustments to reconcile net loss to net cash used in operating activities:                        |   |   |   |   |   |
|       Depreciation and amortization                                               |   |   | 576,962 |   |   |   | 538,657 |   |
|       Deferred tax assets                                                         |   |   | (392,210 | ) |   |   | 1,211,315 |   |
|       Loss on desposal on assets                                                  |   |   | - |   |   |   | 21,416 |   |
|       Forgiveness of debt                                                         |   |   | - |   |   |   | (3,640,718 | ) |
|       Non-cash interest expense related to debentures and warrants                |   |   | - |   |   |   | 89,561 |   |
|       Stock issued for services                                    |   |   | 252,559 |   |   |   | 273,454 |   |
|       Change in fair value of warrants and derivative liability                   |   |   | (1,117,023 | ) |   |   | (2,481,533 | ) |
|       Minority interest                                                           |   |   | (78,442 | ) |   |   | 147,808 |   |
|   Changes in operating assets and liabilities:                                                        |   |   |   |   |   |   |   |   |
|        Accounts receivable                                                   |   |   | (469,755 | ) |   |   | (189,611 | ) |
|        Inventories                                                           |   |   | (10,874 | ) |   |   | (413,919 | ) |
|        Prepaid expenses and sundry current assets                            |   |   | (134,167 | ) |   |   | (187,396 | ) |
|        Accounts payable                                                      |   |   | 449,032 |   |   |   | 122,885 |   |
|        Accrued expenses, taxes and sundry current liabilities                |   |   | 298,371 |   |   |   | 922,215 |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                                           |   |   | (1,329,741 | ) |   |   | (598,303 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                           |   |   |   |   |   |   |   |   |
|   Acquisition of property and equipment                                                               |   |   | (1,044,528 | ) |   |   | (420,692 | ) |
|   Loans to unrelated parties                                                                          |   |   | 291,049 |   |   |   | - |   |
|   Cash Proceeds from sale of assets                                                                   |   |   | - |   |   |   | 950,626 |   |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                                             |   |   | (753,479 | ) |   |   | 529,934 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                           |   |   |   |   |   |   |   |   |
|   Repayment of bank loan                                                                              |   |   | - |   |   |   | (4,270,485 | ) |
|   Short-term borrowings                                                                               |   |   | 680,601 |   |   |   | - |   |
|   Other borrowings                                                                                    |   |   | 39,324 |   |   |   | 3,753,122 |   |
|   Loans from related party                                                                            |   |   | 49,457 |   |   |   | 715,504 |   |
|   Sale of common stock                                                                                |   |   | - |   |   |   | 5,000,000 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                                                       |   |   | 769,382 |   |   |   | 5,198,141 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                                                                 |   |   | 136,874 |   |   |   | (17,979 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH                                                                                     |   |   | (1,176,964 | ) |   |   | 5,111,793 |   |
| CASH – BEGINNING OF YEAR                                                                                  |   |   | 3,985,710 |   |   |   | 1,271,922 |   |
| CASH – END OF PERIOD                                                                                      |   | $ | 2,808,746 |   |   |   | 6,383,715 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| 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 |   |
|      Cash paid for interest                                                            |   |   | 588,227 |   |   |   | - |   |
|      Cash paid for income tax                                                          |   |   | 235,103 |   |   |   | - |   |

----

|   |
|--------|

----

| Estimated dividends     | None   |
|-------------------------|--------|
| Expected volatility     | 59.58% |
| Risk-free interest rate | 0.19%  |
| Expected term (years)   | 0.71   |

----

|            |   | December 31 |      |   | June 30 |   |
|-----------------|--------|-------------|-----------|--------|---------|--------|
|            |   | 2010        |      |   | 2010    |   |
|            |   |        |      |   |    |   |
| Work in process |   | $           | 142,110   |   |    | $      | 119,327 |   |
| Raw materials   |   |        | 920,799   |   |    |   | 449,137 |   |
| Finished goods  |   |        | 559,522   |   |    |   | 996,511 |   |
|            |   | $           | 1,622,431 |   |    | $      | 1,564,975 |   |

|                              |   | December 31 |    |   | June 30 |   |
|-----------------------------------|--------|-------------|---------|--------|---------|--------|
|                              |   | 2010        |    |   | 2010    |   |
|                              |   |        |    |   |    |   |
| Shi Jia Zhuang Finance Bureau (a) |   | $           | 226,867 |   |    | $      | 293,746 |   |
| Bo Hai International Trust (b)    |   |        | 756,224 |   |    |   | - |   |
|                              |   | $           | 983,091 |   |    | $      | 293,746 |   |

----

|                                          |   | December 31 |      |   | June 30 |   |
|-----------------------------------------------|--------|-------------|-----------|--------|---------|--------|
|                                          |   | 2010        |      |   | 2010    |   |
|                                          |   |        |      |   |    |   |
| Accrued salaries and benefits                 |   | $           | 375,796   |   |    | $      | 308,693 |   |
| Accrued interest                              |   |        | 1,303,834 |   |    |   | 1,073,890 |   |
| Accrued taxes                                 |   |        | 268,253   |   |    |   | 52,637 |   |
| Other accrued expenses and sundry liabilities |   |        | 511,602   |   |    |   | 641,335 |   |
|                                          |   | $           | 2,459,485 |   |    | $      | 2,076,555 |   |

|                                                                                                                                                                                                                                    |   | December 31 |      |   | 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 |   | $           | 4,537,342 |   |    | $      | 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                   |   |        | 3,781,119 |   |    |   | 3,671,827 |   |
|                                                                                                                                                                                                                                    |   | $           | 8,318,461 |   |    | $      | 8,078,019 |   |

|                                                                                                                               |   | December 31 |      |   | June 30 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|---------|--------|
|                                                                                                                               |   | 2010        |      |   | 2010    |   |
|                                                                                                                               |   |        |      |   |    |   |
| Loans payable bearing interest at 10% and 25% per annum and maturing on March and December 2012                                    |   | $           | 2,272,954 |   |    | $      | 2,221,943 |   |
| Loans from unrelated third parties maturing on various dates through August 2011 and bearing interest at rates ranging from 6%-10% |   |        | 102,846   |   |    |   | 46,999 |   |
|                                                                                                                               |   | $           | 2,375,800 |   |    | $      | 2,268,942 |   |
| Less current portion                                                                                                               |   |        | 102,846   |   |    |   | 46,999 |   |
|                                                                                                                               |   | $           | 2,272,954 |   |    | $      | 2,221,943 |   |

----

|                                                                                                      |   | December 31 |      |   | June 30 |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|---------|--------|
|                                                                                                      |   | 2010        |      |   | 2010    |   |
|                                                                                                      |   |        |      |   |    |   |
| Loans maturing on March and December 31, 2012 bearing interest from 5% to 25% per annum                   |   | $           | 6,517,505 |   |    | $      | 6,329,118 |   |
| Loans maturing on various dates through August 17, 2011, bearing interest at a rate ranging from 7.2%-10% |   |        | 146,865   |   |    |   | 94,760 |   |
|                                                                                                      |   | $           | 6,664,370 |   |    | $      | 6,423,878 |   |
| Less current portion                                                                                      |   |        | 146,865   |   |    |   | 94,760 |   |
|                                                                                                      |   | $           | 6,517,505 |   |    | $      | 6,329,118 |   |

|                                         |   | Six months ended December 31, |     |
|----------------------------------------------|--------|-------------------------------|----------|
|                                         |   | 2010                          |     |   | 2009 |   |
|                                         |   |                          |     |   |   |   |
| U.S. Statutory rate                          |   | $                             | (382,012 | ) |   | $ | 1,521,340 |   |
| Tax rate differential between China and U.S. |   |                          | 156,883  |   |   |   | (295,617 | ) |
| Change in valuation allowance                |   |                          | (167,081 | ) |   |   | (14,408 | ) |
| Effective tax rate                           |   | $                             | (392,210 | ) |   | $ | 1,211,315 |   |

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|                          |   | Six months ended December 31, |     |
|-------------------------------|--------|-------------------------------|----------|
|                          |   | 2010                          |     |   | 2009 |   |
|                          |   |                          |     |   |   |   |
| Deferred - United States      |   |                          | 67,081   |   |   |   |   |
| Deferred - China              |   |                          | (392,210 | ) |   |   | 1,225,723 |   |
| Change in valuation allowance |   |                          | (167,081 | ) |   |   | (14,408 | ) |
| Total                         |   |                          | (392,210 | ) |   |   | 1,211,315 |   |

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| Contractual Obligations             |   | Total  |       |   | Less than 1 Year |   |      | 1-3 Years |   |   | 4-5 Years |   |   | After 5 Years |   |
|-------------------------------------|--------|--------|------------|--------|-----------------------|--------|-----------|-----------|--------|--------|-----------|--------|--------|---------------|--------|
| Loans Payable                       |   |   |       |   |                  |   |      |      |   |   |      |   |   |          |   |   |   |
| - Bank                              |   | $      | 8,318,461  |   |                  | $      | 8,318,461 |      |   | $      | -         |   |   | $             |   |   |   | $ |   |   |
| - Related Party                     |   |   | 6,664,370  |   |                  |   | 146,865   |      |   |   | 6,517,505 |   |   |          |   |   |   |   |   |   |
| - Others                            |   |   | 2,375,800  |   |                  |   | 102,846   |      |   |   | 2,272,954 |   |   |          |   |   |   |   |   |   |
| - Short-term                        |   |   | 983,091    |   |                  |   | 983,091   |      |   |   |      |   |   |          |   |   |   |   |   |   |
|      TOTAL |   | $      | 18,341,722 |   |                  | $      | 9,551,263 |      |   | $      | 8,790,459 |   |   | $             |   |   |   | $ |   |   |

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|   | 31.1 | Rule 13a-14(a) Certification – CEO |
|--------|------|------------------------------------------|
|   | 31.2 | Rule 13a-14(a) Certification – CFO |
|   | 32   | Rule 13a-14(b) Certification             |

|                    | AOXING PHARMACEUTICAL COMPANY, INC.                                                                 |
|-------------------------|-----------------------------------------------------------------------------------------------------|
|                    |                                                                                                |
| Date: February 14, 2010 | By: /s/ Zhenjiang Yue                                                                               |
|                    |        Zhenjiang Yue, Chief Executive Officer                    |
|                    |                                                                                                |
| Date: February 14, 2010 | By: /s/ Bob Ai                                                                                      |
|                    |        Bob Ai, Chief Financial Officer, Chief Accounting Officer |

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