----

----

| Delaware                                                       |   |                                    |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   |  (IRS Employer Identification No.) |

| Large Accelerated Filer |                                                |   | Accelerated Filer         |                 |
|-------------------------|-----------------------------------------------------|--------|---------------------------|----------------------|
| Non-accelerated filer   |  (do not check if a smaller reporting company) |   | Smaller reporting company |     X |

----

|                                                                                                                                                                                                                                                                                                                              | Page      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| PART I - FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                    | 3         |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 1.  Financial Statements                                                                                                                                                                                                                                                                                           | 3         |
|                                                                                                                                                                                                                                                                                                                              |      |
|              Consolidated Balance Sheets at                      December 31, 2010 (unaudited) and June 30, 2010                                   |  4   |
|                                                                                                                                                                                                                                                                                                                              |      |
|              Unaudited Consolidated Statements of  Operations for the                      three months ended December 31, 2010 and 2009 |  5   |
|                                                                                                                                                                                                                                                                                                                              |      |
|               Unaudited Consolidated Statements of Cash Flows                      for the three months ended December 31, 2010 and 2009      |  6   |
|                                                                                                                                                                                                                                                                                                                              |      |
|               Unaudited notes to Consolidated Financial Statements                                                                                                                                                                                          |   7  |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 2.  Management’s Discussion and Analysis or Plan of Operation                                                                                                                                                                                                                                                |   14 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 3. Quantitative and Qualitative Disclosure About Market Risk                                                                                                                                                                                                                                                            |   19 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 4.  Controls and Procedures                                                                                                                                                                                                                                                                                        |   19 |
|                                                                                                                                                                                                                                                                                                                              |      |
| PART II – OTHER INFORMATION                                                                                                                                                                                                                                                                                                 |   20 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 1.  Legal Proceedings                                                                                                                                                                                                                                                                                              |   20 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 2.  Unregistered Sales of Equity Securities And Use Of Proceeds                                                                                                                                                                                                                                                    |   20 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 3.  Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                | 20        |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 4.  (Removed and Reserved)                                                                                                                                                                                                                                                                                         |   20 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 5. Other Information                                                                                                                                                                                                                                                                                                         |   20 |
|                                                                                                                                                                                                                                                                                                                              |      |
| Item 6.  Exhibits                                                                                                                                                                                                                                                                                                       | 20        |
|                                                                                                                                                                                                                                                                                                                              |      |

----

|                                                                                |   | December 31, |       |   | June 30, |   |
|-------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|
|                                                                                |   | 2010         |       |   | 2010     |   |
| Assets                                                                              |   | (Unaudited)  |       |   |     |   |
| Current assets:                                                                     |   |         |       |   |     |   |
| Cash and cash equivalents                                                           |   | $            | 31,168,661 |   |     | $      | 27,009,066 |   |
| Accounts receivable, net of allowance for doubtful accounts of $433,657             |   |         | 9,395,224  |   |     |   | 8,185,240 |   |
|    and $421,079 at December 31, 2010 and June 30, 2010, respectively |   |         |       |   |     |   |   |   |
| Inventory                                                                           |   |         | 5,470,575  |   |     |   | 3,588,824 |   |
| Advance payments                                                                    |   |         | 394,420    |   |     |   | 382,980 |   |
| Loans receivable                                                                    |   |         | -          |   |     |   | 294,600 |   |
| Other current assets                                                                |   |         | 31,746     |   |     |   | 77,283 |   |
| Total current assets                                                                |   |         | 46,460,626 |   |     |   | 39,537,993 |   |
| Property and equipment, net                                                         |   |         | 22,668,370 |   |     |   | 14,968,822 |   |
| Intangibles, net                                                                    |   |         | 15,348,771 |   |     |   | 15,232,286 |   |
| Total assets                                                                        |   | $            | 84,477,767 |   |     | $      | 69,739,101 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Liabilities                                                                         |   |         |       |   |     |   |   |   |
| Current liabilities:                                                                |   |         |       |   |     |   |   |   |
| Accounts payable and accrued expenses                                               |   | $            | 1,560,592  |   |     | $      | 1,715,781 |   |
| Accounts payable – construction related                                       |   |         | 5,195,829  |   |     |   | 2,248,849 |   |
| Short-term bank loans                                                               |   |         | 1,517,000  |   |     |   | 1,473,000 |   |
| VAT taxes payable                                                                   |   |         | 704,657    |   |     |   | 658,312 |   |
| Income taxes payable                                                                |   |         | 950,264    |   |     |   | 861,614 |   |
| Other taxes payable                                                                 |   |         | 146,587    |   |     |   | 19,564 |   |
| Dividends payable                                                                   |   |         | 53,501     |   |     |   | 72,995 |   |
| Other current liabilities                                                           |   |         | 607,196    |   |     |   | 429,135 |   |
| Total current liabilities                                                           |   |         | 10,735,626 |   |     |   | 7,479,250 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Total liabilities                                                                   |   |         | 10,735,626 |   |     |   | 7,479,250 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Equity                                                                              |   |         |       |   |     |   |   |   |
| Stockholders’ equity:                                                         |   |         |       |   |     |   |   |   |
| Common stock, $0.001 par value, 50,000,000 shares authorized,                       |   |         | 27,986     |   |     |   | 27,326 |   |
|    27,986,026 and 27,371,526 shares issued and outstanding at        |   |         |       |   |     |   |   |   |
|   December 31, 2010 and June 30, 2010, respectively                       |   |         |       |   |     |   |   |   |
| Series A convertible preferred stock, $0.001 par value 1,360,250 shares             |   |         | 1,360      |   |     |   | 1,360 |   |
|    issued and outstanding at December 31, 2010 and June 30, 2010,    |   |         |       |   |     |   |   |   |
|    Respectively                                                      |   |         |       |   |     |   |   |   |
| Additional paid-in capital                                                          |   |         | 31,335,308 |   |     |   | 29,623,396 |   |
| Statutory reserve                                                                   |   |         | 3,782,883  |   |     |   | 3,732,883 |   |
| Treasury stock                                                                      |   |         | (111,587   | )      |     |   | (111,587 | ) |
| Retained earnings                                                                   |   |         | 33,657,340 |   |     |   | 25,687,770 |   |
| Accumulated other comprehensive income                                              |   |         | 4,611,993  |   |     |   | 2,845,076 |   |
| Total stockholders’ equity                                                    |   |         | 73,305,283 |   |     |   | 61,806,224 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Noncontrolling interest                                                             |   |         | 436,858    |   |     |   | 453,627 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Total equity                                                                        |   |         | 73,742,141 |   |     |   | 62,259,851 |   |
|                                                                                |   |         |       |   |     |   |   |   |
| Total liabilities and equity                                                        |   | $            | 84,477,767 |   |     | $      | 69,739,101 |   |

----

|                                     |   | For the Three Months Ended |       |   | For the Six Months Ended |   |
|------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                     |   | December 31,               |       |   | December 31,             |   |
|                                     |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Sales                                    |   | $                          | 25,333,853 |   |                     | $      | 14,936,378 |   |   | $ | 47,284,667 |   |   | $ | 28,341,581 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                            |   |                       | 13,999,623 |   |                     |   | 7,177,503 |   |   |   | 25,139,312 |   |   |   | 13,526,730 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                             |   |                       | 11,334,230 |   |                     |   | 7,758,875 |   |   |   | 22,145,355 |   |   |   | 14,814,851 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                      |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative      |   |                       | 5,747,435  |   |                     |   | 4,409735 |   |   |   | 11,734,661 |   |   |   | 8,527,501 |   |
| Research and development                 |   |                       | 258,702    |   |                     |   | 197,380 |   |   |   | 516,677 |   |   |   | 389,870 |   |
| Total operating expenses                 |   |                       | 6,006,137  |   |                     |   | 4,607,115 |   |   |   | 12,251,338 |   |   |   | 8,917,371 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                   |   |                       | 5,328,093  |   |                     |   | 3,151,760 |   |   |   | 9,894,017 |   |   |   | 5,897,480 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income, net                     |   |                       | 5,584      |   |                     |   | (10,443 | ) |   |   | 14,790 |   |   |   | (19,995 | ) |
| Other income (expenses)                  |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | (39,510 | ) |
| Total other expenses                     |   |                       | 5,584      |   |                     |   | (10,443 | ) |   |   | 14,790 |   |   |   | (59,505 | ) |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income tax   |   |                       | 5,333,677  |   |                     |   | 3,141,317 |   |   |   | 9,908,807 |   |   |   | 5,837,975 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                 |   |                       | 942,068    |   |                     |   | 571,756 |   |   |   | 1,847,507 |   |   |   | 1,081,691 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income                               |   |                       | 4,391,609  |   |                     |   | 2,569,561 |   |   |   | 8,061,300 |   |   |   | 4,756,284 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net income (loss) attributable to  |   |                       | (8,785     | )      |                     |   | 1,485 |   |   |   | (16,629 | ) |   |   | (1,040 | ) |
| noncontrolling interest                  |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to Tianyin       |   |                       | 4,400,394  |   |                     |   | 2,568,076 |   |   |   | 8,077,929 |   |   |   | 4,757,324 |   |
|   Pharmaceutical Co., Inc.     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment  |   |                       | 814,035    |   |                     |   | 10,927 |   |   |   | 1,766,917 |   |   |   | 46,784 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                     |   | $                          | 5,214,429  |   |                     | $      | 2,579,003 |   |   | $ | 9,844,846 |   |   | $ | 4,804,108 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                 |   | $                          | 0.16       |   |                     | $      | 0.10 |   |   | $ | 0.29 |   |   | $ | 0.20 |   |
| Diluted earnings per share               |   | $                          | 0.14       |   |                     | $      | 0.08 |   |   | $ | 0.27 |   |   | $ | 0.17 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|    outstanding            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   |                       | 27,986,026 |   |                     |   | 24,906,965 |   |   |   | 27,939,271 |   |   |   | 22,323,116 |   |
| Diluted                                  |   |                       | 30,524,479 |   |                     |   | 30,439,912 |   |   |   | 30,477,723 |   |   |   | 28,521,127 |   |
|                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                          |   | For the Six Months Ended December 31, |       |
|---------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                          |   | 2010                                  |       |   | 2009 |   |
| Cash flows from operating activities:                         |   |                                  |       |   |   |   |
| Net Income                                                    |   | $                                     | 8,061,300  |   |   | $ | 4,756,284 |   |
| Adjustments to reconcile net income to net cash               |   |                                  |       |   |   |   |   |   |
|   provided by (used in) operating activities:       |   |                                  |       |   |   |   |   |   |
| Depreciation and amortization                                 |   |                                  | 602,584    |   |   |   | 393,575 |   |
| Share-based payments                                          |   |                                  | 1,762,572  |   |   |   | 1,055,395 |   |
| Loss on disposal of fixed assets                              |   |                                  | -          |   |   |   | 39,510 |   |
| Changes in current assets and current liabilities:            |   |                                  |       |   |   |   |   |   |
| Accounts receivable                                           |   |                                  | (949,316   | ) |   |   | (3,013,450 | ) |
| Inventory                                                     |   |                                  | (1,744,837 | ) |   |   | 592,309 |   |
| Other receivables                                             |   |                                  | 25,481     |   |   |   | 401,237 |   |
| Other current assets                                          |   |                                  | 20,750     |   |   |   | 37,500 |   |
| Accounts payable and accrued expenses                         |   |                                  | (170,205   | ) |   |   | 256,055 |   |
| Accounts payable – construction related                 |   |                                  | 2,918,583  |   |   |   | - |   |
| VAT taxes payable                                             |   |                                  | (1,020     | ) |   |   | 83,038 |   |
| Income tax payable                                            |   |                                  | 61,860     |   |   |   | 80,668 |   |
| Other taxes payable                                           |   |                                  | 151,575    |   |   |   | 3,788 |   |
| Dividends payable                                             |   |                                  | (18,138    | ) |   |   | - |   |
| Other current liabilities                                     |   |                                  | 45,190     |   |   |   | 193,483 |   |
| Total adjustments                                             |   |                                  | 2,705,079  |   |   |   | 123,108 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net cash provided by operating activities                     |   |                                  | 10,766,379 |   |   |   | 4,879,392 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Cash flows from investing activities:                         |   |                                  |       |   |   |   |   |   |
| Additions to property and equipment                           |   |                                  | (7,400,717 | ) |   |   | (1,288,234 | ) |
| Additions to intangible assets – drug                   |   |                                  | -          |   |   |   | (2,742,168 | ) |
| Loan receivable                                               |   |                                  | 298,320    |   |   |   | (293,280 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net cash used in investing activities                         |   |                                  | (7,102,397 | ) |   |   | (4,323,682 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Cash flows from financing activities:                         |   |                                  |       |   |   |   |   |   |
| Additional paid-in capital                                    |   |                                  | -          |   |   |   | 7,590,962 |   |
| Contribution from minority shareholders                       |   |                                  | -          |   |   |   | 439,920 |   |
| Dividends paid                                                |   |                                  | (54,857    | ) |   |   | (1,077,335 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities           |   |                                  | (54,857    | ) |   |   | 6,953,547 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                |   |                                  | 550,470    |   |   |   | 5,093 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                     |   |                                  | 4,159,595  |   |   |   | 7,514,350 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Cash and cash equivalents – beginning                   |   |                                  | 27,009,066 |   |   |   | 12,352,223 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Cash and cash equivalents – ending                      |   | $                                     | 31,168,661 |   |   | $ | 19,866,573 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Supplemental schedule of non cash activities                  |   |                                  |       |   |   |   |   |   |
| Advance payments exchanged for intangible assets – drug |   | $                                     | -          |   |   | $ | 807,986 |   |
|                                                          |   |                                  |       |   |   |   |   |   |

----

----

----

|                          |   | December 31, 2010 |      |   |  June 30, 2010 |   |
|-------------------------------|--------|-------------------|-----------|--------|---------------------|--------|
|                          |   |              |      |   |                |   |
| Raw materials                 |   | $                 | 846,022   |   |                | $      | 268,443 |   |
| Packaging supplies            |   |              | 682,188   |   |                |   | 1,798,555 |   |
| Work in process               |   |              | 2,810,764 |   |                |   | 1,326,441 |   |
| Finished goods                |   |              | 1,131,601 |   |                |   | 334,399 |   |
| Subtotal                      |   |              | 5,470,575 |   |                |   | 3,727,838 |   |
| Less: Inventory reserve       |   |              | -         |   |                |   | 139,014 |   |
|     Total |   | $                 | 5,470,575 |   |                | $      | 3,588,824 |   |

|                             |   | December 31, 2010 |             |   | June 30, 2010 |   |
|----------------------------------|--------|-------------------|------------------|--------|---------------|--------|
|                             |   |              |             |   |          |   |
| Buildings                        |   | $                 | 9,046,446        |   |          | $      | 8,784,057 |   |
| Machinery and equipment          |   |              | 2,719,059        |   |          |   | 2,640,194 |   |
| Office equipment and furniture   |   |              | 57,822           |   |          |   | 56,145 |   |
| Vehicles                         |   |              | 64,928           |   |          |   | 63,045 |   |
|     Subtotal |   |              | 11,888,255       |   |          |   | 11,543,441 |   |
| Less: Accumulated depreciation   |   |              | 2,693,024        |   |          |   | 2,348,544 |   |
|                             |   |              | 9,195,231        |   |          |   | 9,194,897 |   |
| Add: Construction in progress    |   |              |  13,473,139 |   |          |   |  5,773,925 |   |
|     Total    |   | $                 | 22,668,370       |   |          | $      | 14,968,822 |   |

|                                                                 |   | December 31, 2010 |       |   | June 30, 2010 |   |
|----------------------------------------------------------------------|--------|-------------------|------------|--------|---------------|--------|
|                                                                 |   |              |       |   |          |   |
| Land use rights                                                      |   | $                 | 1,501,830  |   |          | $      | 1,458,270 |   |
| Approved drugs:                                                      |   |              |       |   |          |   |   |   |
|    Traditional Chinese Medicine subject to impairment |   |              | 9,352,802  |   |          |   | 9,081,528 |   |
| Non-traditional Chinese Medicine                                     |   |              | 5,840,450  |   |          |   | 5,671,050 |   |
| Total approved drugs                                                 |   |              | 15,193,252 |   |          |   | 14,752,578 |   |
| Total Intangible assets                                              |   |              | 16,695,082 |   |          |   | 16,210,848 |   |
| Less: accumulated amortization                                       |   |              | 1,346,311  |   |          |   | 978,562 |   |
|                                                                 |   |              |       |   |          |   |   |   |
|     Total                                        |   | $                 | 15,348,771 |   |          | $      | 15,232,286 |   |

----

|                          |   | December 31, 2010 |      |   | June 30, 2010 |   |
|-------------------------------|--------|-------------------|-----------|--------|---------------|--------|
|                          |   |              |      |   |          |   |
| Accounts payable              |   | $                 | 1,547,592 |   |          | $      | 1,535,781 |   |
| Accrued expenses              |   |              | 13,000    |   |          |   | 180,000 |   |
|                          |   |              |      |   |          |   |   |   |
|     Total |   | $                 | 1,560,592 |   |          | $      | 1,715,781 |   |

|                                                                                                                                                                                                                                                                                                             |   | December 31, |                    |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                             |   | 2010         |                    |   | 2010     |   |
|                                                                                                                                                                                                                                                                                                             |   |         |                    |   |     |   |
|                                                                                                                                                                                                                                                                                                             |   |         |                    |   |     |   |
| On January 29, 2010, the Company obtained a loan from China CITIC Bank, out of which the principal is to be paid in full by January 28, 2011.The interest is to be calculated using an annual fixed interest rate of 5.5755% and paid monthly. The loan is secured by the Company’s property and equipment |   | $            |     1,517,000 |   |     | $      |     1,473,000 |   |
|                                                                                                                                                                                                                                                                                                             |   |         |                    |   |     |   |   |   |
| Total short-term bank loans                                                                                                                                                                                                                                                                                      |   | $            | 1,517,000               |   |     | $      | 1,473,000 |   |

----

----

| Note 13 – Risk of Concentrations and Credit Risk |
|--------------------------------------------------------|

----

|                       |   | Six Months Ended December 31 |      |
|----------------------------|--------|------------------------------|-----------|
|                       |   | 2010                         |      |   | 2009 |   |
|                       |   |                         |      |   |   |   |
| Cash paid for interest     |   | $                            | 42,809    |   |   | $ | 39,363 |   |
| Cash paid for income taxes |   | $                            | 1,847,507 |   |   | $ | 999,596 |   |

|                                                   |   | Three Months Ended December 31, |       |
|--------------------------------------------------------|--------|---------------------------------|------------|
|                                                   |   |                            | 2010       |   |   |   | 2009  |   |
| Net income attributable to TPI                         |   | $                               | 4,400,394  |   |   | $ | 2,568,076 |   |
|   (numerator for diluted income per share)   |   |                            |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders  |   |                            | 53,501     |   |   |   | 98,538 |   |
|                                                   |   |                            |       |   |   |   |   |   |
| Net income attributable to common stockholders         |   |                            | 4,346,893  |   |   |   | 2,469,538 |   |
|   (numerator for basic income per share)     |   |                            |       |   |   |   |   |   |
|                                                   |   |                            |       |   |   |   |   |   |
| Weighted average common shares                         |   |                            |       |   |   |   |   |   |
|   (denominator for basic income per share)   |   |                            | 27,986,026 |   |   |   | 24,906,965 |   |
|                                                   |   |                            |       |   |   |   |   |   |
| Effect of diluted securities:                          |   |                            |       |   |   |   |   |   |
|   Convertible preferred stock                |   |                            | 1,276,464  |   |   |   | 2,443,375 |   |
|    Warrants                             |   |                            | 1,261,989  |   |   |   | 3,089,572 |   |
|                                                   |   |                            |       |   |   |   |   |   |
| Weighted average common shares                         |   |                            |       |   |   |   |   |   |
|   (denominator for diluted income per share) |   |                            | 30,524,479 |   |   |   | 30,439,912 |   |
|                                                   |   |                            |       |   |   |   |   |   |
| Basic net income per share                             |   | $                               | 0.16       |   |   | $ | 0.10 |   |
| Diluted net income per share                           |   | $                               | 0.14       |   |   | $ | 0.08 |   |

----

|                                                   |   | Six Months Ended December 31, |       |
|--------------------------------------------------------|--------|-------------------------------|------------|
|                                                   |   | 2010                          |       |   | 2009 |   |
|                                                   |   |                          |       |   |   |   |
| Net income attributable to TPI                         |   | $                             | 8,077,929  |   |   | $ | 4,757,324 |   |
|   (numerator for diluted income per share)   |   |                          |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders  |   |                          | 108,358    |   |   |   | 332,221 |   |
|                                                   |   |                          |       |   |   |   |   |   |
| Net income attributable to common stockholders         |   |                          | 7,969,571  |   |   |   | 4,425,103 |   |
|   (numerator for basic income per share)     |   |                          |       |   |   |   |   |   |
|                                                   |   |                          |       |   |   |   |   |   |
| Weighted average common shares                         |   |                          |       |   |   |   |   |   |
|   (denominator for basic income per share)   |   |                          | 27,939,271 |   |   |   | 22,323,116 |   |
|                                                   |   |                          |       |   |   |   |   |   |
| Effect of diluted securities:                          |   |                          |       |   |   |   |   |   |
|   Convertible preferred stock                |   |                          | 1,276,464  |   |   |   | 3,972,394 |   |
|    Warrants                             |   |                          | 1,261,988  |   |   |   | 2,225,617 |   |
|                                                   |   |                          |       |   |   |   |   |   |
| Weighted average common shares                         |   |                          |       |   |   |   |   |   |
|   (denominator for diluted income per share) |   |                          | 30,477,723 |   |   |   | 28,521,127 |   |
|                                                   |   |                          |       |   |   |   |   |   |
| Basic net income per share                             |   | $                             | 0.29       |   |   | $ | 0.20 |   |
| Diluted net income per share                           |   | $                             | 0.27       |   |   | $ | 0.17 |   |

----

|   | · | Huangtengsu Tablets, indicated for women’s inflammatory conditions and intestinal infectious diseases. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | Lifei Tablets, indicated for cough and other respiratory disorders. |
|--------|--------|---------------------------------------------------------------------|

|   | · | Fuyang Granules, indicated for skin irritation and itchiness. |
|--------|--------|---------------------------------------------------------------|

|   | · | Shuxiong Tablets, indicated for coronary heart diseases and angina pectoris. |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Suxiao Zhixie Capsules, indicated for acute diarrhea symptoms. |
|--------|--------|----------------------------------------------------------------|

|   | · | Shuanghuang Xiaoyan Tablets, indicated for inflammatory conditions and viral infections. |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | Huoxiang Zhengqi Capsules, indicated for various viral infections. |
|--------|--------|--------------------------------------------------------------------|

|   | · | Jiegu Xujing Ointment, indicated for sports related injuries and pain. |
|--------|--------|------------------------------------------------------------------------|

|   | · | Runing Tablets, indicated for women’s mammary gland disorders. |
|--------|--------|----------------------------------------------------------------------|

|   | · | Dengzhan Huasu Tablet, indicated for post-stroke complications, coronary heart diseases and cardiovascular disorders. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

----

|                        |   |   | Three Months Ended December 31, |   |
|-----------------------------|--------|--------|---------------------------------|--------|
|                        |   |   | 2010                            |   |   |   | 2009 |   |
|                        |   |   |                            |   |   |   |   |   |
| Sales                       |   | $      | 25.3                            |   |   | $ | 14.9 |   |
| Cost of sales               |   | $      | 14.0                            |   |   | $ | 7.2 |   |
| Gross profit                |   | $      | 11.3                            |   |   | $ | 7.8 |   |
| Operating expenses          |   | $      | 6.0                             |   |   | $ | 4.6 |   |
| Operating income            |   | $      | 5.3                             |   |   | $ | 3.1 |   |
| Provision for income taxes  |   | $      | 0.9                             |   |   | $ | 0.6 |   |
| Net income                  |   | $      | 4.4                             |   |   | $ | 2.6 |   |
| Foreign exchange adjustment |   | $      | 0.8                             |   |   | $ | 0.0 |   |
| Comprehensive income        |   | $      | 5.2                             |   |   | $ | 2.6 |   |

----

|   | · | GMOL: $5.4 million, revenue driving prescription patented proprietary medicine for stroke treatment, nationally reimbursed; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | APU: $1.8 million, flagship OTC product with proprietary granular formulation for inflammation and rheumatism; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | AZI: $1.0 million, branded Essential Drug Listed (EDL) highly effective broad spectrum antiobiotics; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | XLCC: $1.1 million, formulated proprietary TCM oral liquid for immunity and sexual function enhancement; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | QR: $0.8 million, modernized TCM legacy product for viral infections such as H1N1 influenza. |
|--------|--------|----------------------------------------------------------------------------------------------|

----

|                                                      |   | For the six months ended December 31, |                    |
|-----------------------------------------------------------|--------|---------------------------------------|-------------------------|
|                                                      |   | 2010                                  |                    |   | 2009 |   |
| Cash provided by operating activities           |   | $                                     | 10.8                    |   |   | $ | 4.9 |   |
| Cash used in investing activities               |   |                                  |    (7.1) |   |   |   | (4.3 | ) |
| Cash provided by (used in) financing activities |   |                                  | (0.06)                  |   |   |   | 7.0 |   |

----

|                                                                                |   | Common Stock |             |
|------------------------------------------------------------------------------------------|--------|--------------|------------------|
| Outstanding, June 30, 2010                                                               |   |         | 27,371,526       |   |
|   Newly issued, July 15, 2010 total of 614,500 shares at a fair value of $2.80 |   |         | 614,500          |   |
|   Newly converted, December 21, 2010 from 206,250 preferred shares                  |   |         | 206,250          |   |
|  Outstanding, December 31, 2010                                                     |   |         |  28,192,276 |   |

----

| (a) | Evaluation of disclosure controls and procedures |
|-----|--------------------------------------------------|

|  (b) | Changes in internal control over financial reporting |
|-----------|------------------------------------------------------|

----

| Exhibit No. |                                                                                                                                                                       |  Document |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|        |                                                                                                                                                                       |
| 3.1         | Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed on September 29, 2010).                            |
|        |                                                                                                                                                                       |
| 3.2         | Bylaws (Incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K filed on September 29, 2010).                                                           |
|        |                                                                                                                                                                       |
| 31.1        | Certification  of  Chief  Executive  Officer  required  by Rule 13a-14/15d-14(a) under the Exchange Act        |
|        |                                                                                                                                                                       |
| 31.2        | Certification of  Chief Accounting Officer required by Rule 13a-14/15d-14(a) under the Exchange Act                                                              |
|        |                                                                                                                                                                       |
| 32.1        | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                    |
|        |                                                                                                                                                                       |
| 32.2        | Certification of Acting Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

----

|  /s/  Dr. Guoqing Jiang      |                                                                                                                      |
|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                   | Name:  Dr. Guoqing Jiang                                                                                             |   |
|                                   | Title:    Chairman, Chief Executive Officer                                                                |   |
|                                   |                                                                                                                      |
|                                   |                                                                                                                      |
|                                   |                                                                                                                      |
|  /s/  Dr. James Jiayuan Tong |                                                                                                                      |
|                                   | Name:  Dr. James Jiayuan Tong                                                                                        |   |
|                                   | Title:    Chief Financial Officer, Chief Accounting Officer,                                          |   |
|                                   |              Chief Business and Development Officer, Director |   |
|                                   |                                                                                                                      |

----