----

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**DRAFT      8/8/08**

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549 **

**FORM      10-Q**

| **x** |   | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d)****OF                THE SECURITIES EXCHANGE ACT OF                1934** |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

**For      the Quarterly Period Ended June 30, 2008 **

| **o** |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d)****OF                THE SECURITIES EXCHANGE ACT OF                1934** |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

**Commission      File Number: 001-33269 **

**CHINA      HEALTHCARE ACQUISITION CORP. **

| **Delaware**                                                                                |   | **20-5013347**                                                 |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| (State                or Other Jurisdiction ofIncorporation                or Organization) |   | (IRS                EmployerIdentification                No.) |

**1233      Encino Drive**

**Pasadena,      CA 91108 **

**(626)      568-9924 **

| Large                Accelerated Filer o                     |   | Accelerated                Filer o        |
|--------------------------------------------------------------|--------|-------------------------------------------|
| Non-accelerated                filer o                       |   | Smaller                reporting companyx |
| (Do                not check if a smaller reporting company) |   |                                 |

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**CHINA      HEALTHCARE ACQUISITION CORP.**

**TABLE      OF CONTENTS**

|                             |                                                                                                                                                                                          |   | Page   |   |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                             | **PART                1 --- FINANCIAL INFORMATION**                                                                                                                                           |   |   |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                1.           | Condensed                Financial Statements (unaudited)                                                                                                                                     |   |   |   |
|                             | Condensed                Balance Sheets                                                                                                                                                       |   | 2      |   |
|                             | Condensed                Statements of Operations                                                                                                                                             |   | 3      |   |
|                             | Condensed                Statements of Stockholders' Equity                                                                                                                                   |   | 4      |   |
|                             | Condensed                Statements of Cash Flows                                                                                                                                             |   | 5      |   |
|                             | Notes                to Condensed Financial Statements                                                                                                                                        |   | 6      |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                2.           | Management                Discussion and Analysis of Financial Condition and Results of                Operations                                                                             |   | 12     |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                3.           | Quantitative                and Qualitative Disclosure about Market Risk                                                                                                                      |   | 15     |   |
|                             |                                                                                                                                                                                          |   |   |
| Item                4T.          | Controls                and Procedures                                                                                                                                                        |   | 15     |   |
|                             |                                                                                                                                                                                          |   |   |   |
|                             | **PART                II --- OTHER INFORMATION**                                                                                                                                              |   |   |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                1.           | Legal                Proceedings                                                                                                                                                              |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |
| Item                1A.          | Risk                Factors                                                                                                                                                                   |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                2.           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                                    |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |
| Item                3.           | Defaults                Upon Senior Securities                                                                                                                                                |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |
| Item                4.           | Submission                of Matters to a Vote of the Security Holders                                                                                                                        |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |
| Item                5.           | Other                Information                                                                                                                                                              |   | 16     |   |
|                             |                                                                                                                                                                                          |   |   |   |
| Item                6.           | Exhibits                                                                                                                                                                                      |   | 17     |   |
|                             |                                                                                                                                                                                          |   |   |
| SIGNATURE                        |                                                                                                                                                                                          | 18     |   |
|                             |                                                                                                                                                                                          |   |   |
| INDEX                TO EXHIBITS |                                                                                                                                                                                          | 19     |   |
|                             | Certification                by Chief Executive Officer Pursuant to Section 302                                                                                                               |   |   |   |
|                             | Certification                by Chief Financial Officer Pursuant to Section 302                                                                                                               |   |   |   |
|                             | Certification                by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as                adoptedpursuant                to Section 906 of the Sarbanes-Oxley Act of 2002 |   |   |   |
|                             | Certification                by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as                adoptedpursuant                to Section 906 of the Sarbanes-Oxley Act of 2002 |   |   |   |

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**Item      1.Financial Statements**

**CHINA      HEALTHCARE ACQUISITION CORP.**

**(a      development stage company)**

**Balance      Sheets**

|                                                                                                                                                                                                                                                   |   | **June                30,** |       | **December                31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|---------------------------------|--------|
|                                                                                                                                                                                                                                                   |   | **2008**                    |       | **2007**                        |   |
|                                                                                                                                                                                                                                                   |   | **(Unaudited)**             |       |                            |   |
| **ASSETS**                                                                                                                                                                                                                                             |   |                        |       |                            |   |
| **Current                Assets**                                                                                                                                                                                                                      |   |                        |       |                            |   |
| Cash                                                                                                                                                                                                                                                   |   | $                           | 863,226    |                            | $      | 850,870 |   |
| Cash                in Trust                                                                                                                                                                                                                           |   |                        | 57,395,837 |                            |   | 57,489,612 |   |
| Prepaid                expense                                                                                                                                                                                                                         |   |                        | 50,044     |                            |   | 51,375 |   |
| Other                assets - tax refund                                                                                                                                                                                                               |   |                        | 102,000    |                            |   | ─ |   |
| Total                Current Assets                                                                                                                                                                                                                    |   |                        | 58,411,107 |                            |   | 58,391,857 |   |
| Fixed                Assets Net of Depreciation                                                                                                                                                                                                        |   |                        | 6,734      |                            |   | 4,744 |   |
|                                                                                                                                                                                                                                                   |   |                        |       |                            |   |   |   |
| **TOTAL                ASSETS**                                                                                                                                                                                                                        |   | $                           | 58,417,841 |                            | $      | 58,396,601 |   |
|                                                                                                                                                                                                                                                   |   |                        |       |                            |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                |   |                        |       |                            |   |   |   |
| **Current                Liabilities**                                                                                                                                                                                                                 |   |                        |       |                            |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                   |   | $                           | 37,700     |                            | $      | 9,381 |   |
| Due                to stockholder                                                                                                                                                                                                                      |   |                        | 85,520     |                            |   | 4,245 |   |
| Deferred                underwriting fees                                                                                                                                                                                                              |   |                        | 2,133,867  |                            |   | 2,133,867 |   |
| Taxes                payable                                                                                                                                                                                                                           |   |                        | 20,950     |                            |   | 79,339 |   |
| Notes                payable to stockholder                                                                                                                                                                                                            |   |                        | ─    |                            |   | 150,000 |   |
| **TOTAL                LIABILITIES**                                                                                                                                                                                                                   |   |                        | 2,278,037  |                            |   | 2,376,832 |   |
|                                                                                                                                                                                                                                                   |   |                        |       |                            |   |   |   |
| **Common                stock, subject to possible redemption, 1,949,335                shares****at                redemption value, and interest subject to possible                redemption**                                                     |   |                        | 11,092,645 |                            |   | 11,029,265 |   |
| **COMMITMENTS**                                                                                                                                                                                                                                        |   |                        |       |                            |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                |   |                        |       |                            |   |   |   |
| Preferred                stock ─ $.0001 par value; 1,000,000 authorized; 0 issued                and outstanding                                                                                                                            |   |                        | ─    |                            |   | ─ |   |
| Common                stock ─ $.0001 par value; 50,000,000 shares                                                                                                                                                                                |   |                        |       |                            |   |   |   |
| Common                stock ─ $.0001 par value; 50,000,000 shares authorized; 11,876,555 issued                and outstanding (which include 1,949,335 shares subject to possible                redemption) and 2,500,000 shares, respectively |   |                        | 1,188      |                            |   | 1,188 |   |
| Additional                paid-in capital                                                                                                                                                                                                              |   |                        | 44,074,106 |                            |   | 44,074,106 |   |
| Income                accumulated during the development stage                                                                                                                                                                                         |   |                        | 971,865    |                            |   | 915,210 |   |
| Total                Stockholders' Equity                                                                                                                                                                                                              |   |                        | 45,047,159 |                            |   | 44,990,504 |   |
|                                                                                                                                                                                                                                                   |   |                        |       |                            |   |   |   |
| **TOTAL                LIABILITIES & STOCKHOLDERS' EQUITY**                                                                                                                                                                                        |   | $                           | 58,417,841 |                            | $      | 58,396,601 |   |

----

**CHINA      HEALTHCARE ACQUISITION CORP.**

**(a      development stage company)**

**Condensed      Statements of Operations**

**(Unaudited)**

|                                                                                                |   |                                |       |                                |   |                              |   |                              |       | Period                  from    |   |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|-------------------------------------|--------|-----------------------------------|--------|-----------------------------------|------------|---------------------------------|--------|
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       | June                  7, 2006   |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       | (inception)                  to |   |
|                                                                                                |   | Three                  Months Ended |       | Three                  Months Ended |   | Six                  Months Ended |   | Six                  Months Ended |       | June                  30, 2008  |   |
|                                                                                                |   | June                  30, 2008      |       | June                  30, 2007      |   | June                  30, 2008    |   | June                  30, 2007    |       | (Cumulative)                    |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       |                            |   |
| Interest                  Income                                                                    |   | $                                   | 270,550    |                                | $      | 509,971                           |   | $                                 | 568,391    |                            | $      | 509,984 |   | $ | 2,367,860 |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       |                            |   |   |   |   |   |   |
| Formation                  and operating costs                                                      |   |                                | 191,342    |                                |   | 60,653                            |   |                              | 448,636    |                            |   | 60,673 |   |   | 792,085 |   |
| Delaware                  franchise tax                                                             |   |                                | 15,688     |                                |   | 31,040                            |   |                              | 31,375     |                            |   | 31,040 |   |   | 95,322 |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       |                            |   |   |   |   |   |   |
| Income                  before provision for income taxes                                           |   |                                | 63,520     |                                |   | 418,278                           |   |                              | 88,380     |                            |   | 418,271 |   |   | 1,480,454 |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       |                            |   |   |   |   |   |   |
| Provision                  for income taxes                                                         |   |                                | 22,745     |                                |   | 169,472                           |   |                              | 31,725     |                            |   | 169,472 |   |   | 508,589 |   |
|                                                                                                |   |                                |            |                                |   |                                   |   |                              |            |                            |   |  |   |   |   |   |
| Net                  income                                                                         |   | $                                   | 40,775     |                                | $      | 248,806                           |   | $                                 | 56,655     |                            | $      | 248,799 |   | $ | 971,865 |   |
| Net                  income per share (basic and diluted)                                           |   | $                                   | 0.00       |                                | $      | 0.03                              |   | $                                 | 0.00       |                            | $      | 0.04 |   | $ | 0.12 |   |
|                                                                                                |   |                                |       |                                |   |                              |   |                              |       |                            |   |   |   |   |   |   |
| Weighted                  average number of shares outstanding (basic                  and diluted) |   |                                | 11,876,555 |                                |   | 9,756,471                         |   |                              | 11,876,555 |                            |   | 5,967,306 |   | $ | 7,871,386 |   |

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**CHINA      HEALTHCARE ACQUISITION CORP.**

**(a      development stage company)**

**Condensed      Statements of Stockholders’ Equity**

**(Unaudited)**

|                                                                                                                                                                                                                           |   |                          |       |       |   |                                |   | Income                  (deficit)      |        | Total  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|------------|--------|-------------------------------------|--------|----------------------------------------|-------------|--------|--------|
|                                                                                                                                                                                                                           |   | Common                  Stock |       | Additional |   | accumulated                  during |   |  Stockholders'                    |        |
|                                                                                                                                                                                                                           |   | Shares                        |       | Amount     |   | paid-in                  Capital    |   | the                  development stage |        | Equity |   |
|                                                                                                                                                                                                                           |   |                          |       |       |   |                                |   |                                   |        |   |   |
| Issuance                  of common stock to founders and insiders on June 7, 2006 at $.01                  per                  share                                                                                         |   |                          | 2,500,000  |       | $      | 250                                 |   | $                                      | 24,750      |   | $      | ─ |   | $ | 25,000 |   |
| Net                  Loss                                                                                                                                                                                                      |   |                          |       |       |   |                                |   |                                   |        |   |   | (3,000 | ) |   | (3,000 | ) |
| Balance                  at December 31, 2006                                                                                                                                                                                  |   |                          | 2,500,000  |       |   | 250                                 |   |                                   | 24,750      |   |   | (3,000 | ) |   | 22,000 |   |
| Surrender                  and cancellation of 375,000 shares of common stock by initial stockholders                  on January 24, 2007                                                                                     |   |                          | (375,000   | )          |   | (37                                 | )      |                                   | 37          |   |   | ─ |   |   | ─ |   |
| Sale                  of 3,000,000 private placement warrants to the Chairman of the                  Board of                  Directors on April 25, 2007                                                                    |   |                          | ─    |       |   | ─                             |   |                                   | 1,500,000   |   |   | ─ |   |   | 1,500,000 |   |
| Sale                  of 8,500,000 units, net of underwriters discount and offering expenses                  (1,699,150 shares subject to possible redemption) on April 25,                  207                              |   |                          | 8,500,000  |       |   | 850                                 |   |                                   | 46,407,199  |   |   | ─ |   |   | 46,408,049 |   |
| Proceeds                  from issuance of underwriter's option                                                                                                                                                                |   |                          | ─    |       |   | ─                             |   |                                   | 100         |   |   | ─ |   |   | 100 |   |
| Sale                  of 1,251,555 units, underwriter's over-allotment option, net of                  underwriter's discount (250,185 shares subject to possible redemption)                  on                  May 9, 2007 |   |                          | 1,251,555  |       |   | 125                                 |   |                                   | 7,171,285   |   |   | ─ |   |   | 7,171,410 |   |
| Proceeds                  subject to possible redemption of 1,949,335 shares                                                                                                                                                   |   |                          | ─    |       |   | ─                             |   |                                   | (11,029,265 | )      |   | ─ |   |   | (11,029,265 | ) |
| Net                  income for the twelve months ended December 31, 2007                                                                                                                                                      |   |                          | ─    |       |   | ─                             |   |                                   | ─     |   |   | 918,210 |   |   | 918,210 |   |
| Balance                  at December 31, 2007                                                                                                                                                                                  |   |                          | 11,876,555 |       | $      | 1,188                               |   | $                                      | 44,074,106  |   | $      | 915,210 |   | $ | 4,990,504 |   |
| **Unaudited:**                                                                                                                                                                                                                 |   |                          |       |       |   |                                |   |                                   |        |   |   |   |   |   |   |   |
| Net                  income for the six months ended June 30, 2008                                                                                                                                                             |   |                          | ─    |       |   | ─                             |   |                                   | ─     |   |   | 56,655 |   |   | 56,655 |   |
| Balance                  at June 30, 2008                                                                                                                                                                                      |   |                          | 11,876,555 |       | $      | 1,188                               |   | $                                      | 44,074,106  |   | $      | 971,865 |   | $ | 45,047,159 |   |

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**CHINA      HEALTHCARE ACQUISITION CORP.**

**(a      development stage company)**

**Condensed      Statements of Cash Flows**

**(Unaudited)**

|                                                                                                            |   |                              |      |                              |   | Period                  from    |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|-----------------------------------|--------|---------------------------------|--------|
|                                                                                                            |   |                              |      |                              |   | June                  7, 2006   |   |
|                                                                                                            |   |                              |      |                              |   | (inception)                  to |   |
|                                                                                                            |   | Six                  Months Ended |      | Six                  Months Ended |   | June                  30, 2008  |   |
|                                                                                                            |   | June                  30, 2008    |      | June                  30, 2007    |   | (cumulative)                    |   |
|                                                                                                            |   |                              |      |                              |   |                            |   |
| Cash                  flows from operating activities:                                                          |   |                              |      |                              |   |                            |   |   |   |   |
| Net                  income                                                                                     |   | $                                 | 56,655    |                              | $      | 248,799                         |   | $ | 971,865 |   |
| Adjustments                  to reconcile net income to net cash used in operating                  activities: |   |                              |      |                              |   |                            |   |   |   |   |
| Depreciation                                                                                                    |   |                              | 150       |                              |   | 49                              |   |   | 350 |   |
| Deferred                  tax                                                                                   |   |                              | ─   |                              |   | (21,315                         | )      |   | ─ |   |
| Changes                  in:                                                                                    |   |                              |      |                              |   |                            |   |   |   |   |
| Accrued                  expense payable                                                                        |   |                              | 28,319    |                              |   | 9,788                           |   |   | 37,700 |   |
| Tax                  payable                                                                                    |   |                              | (160,389  | )                                 |   | 221,027                         |   |   | (81,050 | ) |
| Prepaid                  expense                                                                                |   |                              | (1,331    | )                                 |   | (13,438                         | )      |   | (52,706 | ) |
| Interest                  earned on investment held in Trust Account                                            |   |                              | (622,059  | )                                 |   | (508,631                        | )      |   | (2,407,057 | ) |
| Interest                  subject to possible redemption                                                        |   |                              | 63,380    |                              |   | ─                         |   |   | 63,380 |   |
|                                                                                                            |   |                              |           |                              |   |                                 |   |   |   |   |
| Net                  cash provided by (used in) operating activities:                                           |   |                              | (635,275  | )                                 |   | (63,721                         | )      |   | (1,467,518 | ) |
|                                                                                                            |   |                              |      |                              |   |                            |   |   |   |   |
| Cash                  flows from investing activities:                                                          |   |                              |      |                              |   |                            |   |   |   |   |
| Cash                  held in Trust fund                                                                        |   |                              | ─   |                              |   | (57,307,802                     | )      |   | (57,307,802 | ) |
| Disbursements                  from trust account                                                               |   |                              | 715,834   |                              |   | 276,550                         |   |   | 2,319,022 |   |
| Purchase                  fixed asset                                                                           |   |                              | (2,141    | )                                 |   | (1,529                          | )      |   | (7,085 | ) |
|                                                                                                            |   |                              |           |                              |   |                                 |   |   |   |   |
| Net                  cash provided by (used in) investing activities:                                           |   |                              | 713,693   |                              |   | (57,032,781                     | )      |   | (54,995,865 | ) |
|                                                                                                            |   |                              |      |                              |   |                            |   |   |   |   |
| Cash                  flows from financing activities:                                                          |   |                              |      |                              |   |                            |   |   |   |   |
| Gross                  proceeds from issuance of common stock                                                   |   |                              | ─   |                              |   | 51,000,000                      |   |   | 58,534,330 |   |
| Gross                  proceeds from issuance of warrants                                                       |   |                              | ─   |                              |   | 1,500,000                       |   |   | 1,500,000 |   |
| Proceeds                  from underwriter's purchase option                                                    |   |                              | ─   |                              |   | 100                             |   |   | 100 |   |
| Gross                  proceeds from issuance of common stock                                                   |   |                              | ─   |                              |   | 7,509,330                       |   |   | ─ |   |
| Proceeds                  from stockholder's note payable                                                       |   |                              | (150,000  | )                                 |   | 150,000                         |   |   | 150,000 |   |
| Increase                  in due to stockholder                                                                 |   |                              | 81,275    |                              |   | (150,000                        | )      |   | (68,725 | ) |
| Payment                  of costs of public offering                                                            |   |                              | ─   |                              |   | (2,663,352                      | )      |   | (2,796,004 | ) |
| Advance                  from shareholders                                                                      |   |                              | 2,663     |                              |   | 1,245                           |   |   | 6,908 |   |
| Net                  cash provided by (used in) financing activities:                                           |   |                              | (66,062   | )                                 |   | 57,347,325                      |   |   | 57,326,609 |   |
| Net                  increase in cash                                                                           |   |                              | 12,356    |                              |   | 250,821                         |   |   | 863,226 |   |
| Beginning                  balance                                                                              |   |                              | 850,870   |                              |   | 49,349                          |   |   | ─ |   |
| Ending                  balance                                                                                 |   | $                                 | 863,226   |                              | $      | 300,170                         |   | $ | 863,226 |   |
|                                                                                                            |   |                              |      |                              |   |                            |   |   |   |   |
| Supplemental                  Schedule of Non Cash Financing Activities:                                        |   |                              |      |                              |   |                            |
| Accruals                  of offering cost                                                                      |   | $                                 | ─   |                              | $      | 10,000                          |   | $ | ─ |   |
| Accruals                  of deferred underwriters' fees                                                        |   |                              | 2,133,867 |                              |   | 2,133,867                       |   |   | 2,133,867 |   |
| Total                                                                                                           |   | $                                 | 2,133,867 |                              | $      | 2,143,867                       |   | $ | 2,133,867 |   |

----

**CHINA      HEALTHCARE ACQUISITION CORP.**

**(a      development stage company)**

**  **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS**

**June      30, 2008 **

**Note      1 — Introduction **

***Interim      Financial Information***

***These      unaudited condensed financial statements should be read in conjunction with      the      Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March      27, 2008. The accounting policies used in preparing these unaudited condensed      financial statements are consistent with those described in such filing. The      December 31, 2007 balance sheet has been derived from the Company’s audited      financial statements.***

***Organization      and Business Operation***

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**Note      2 — Summary of Significant Accounting Policies **

***Concentration      of Credit Risk***

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***Use      of Estimates***

***Recent      Accounting Standards***

*Business      Combinations *

| • | Acquisition                  costs will be generally expensed as incurred;                                                                                                                                                                                                                                |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                      |
| • | Noncontrolling                  interests (formerly known as “minority interests” — see SFAS 160                  discussion below) will be valued at fair value at the acquisition                  date;                                                                    |
|    |                                                                                                                                                                                                                                                                                                      |
| • | Acquired                  contingent liabilities will be recorded at fair value at the acquisition                  date and subsequently measured at either the higher of such amount                  or the                  amount determined under existing guidance for non-acquired contingencies; |
|    |                                                                                                                                                                                                                                                                                                      |
| • | In-process                  research and development will be recorded at fair value as an                  indefinite-lived intangible asset at the acquisition date;                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                      |
| • | Restructuring                  costs associated with a business combination will be generally                  expensed                  subsequent to the acquisition date; and                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                      |
| • | Changes                  in deferred tax asset valuation allowances and income tax uncertainties                  after the acquisition date generally will affect income tax expense.                                                                                                                    |

*Noncontrolling      Interests in Consolidated Financial Statements — An Amendment of ARB      No. 51 *

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***Net      Income (loss) per share***

***Deferred      Income Taxes***

**Note      3 — Notes Payable to Stockholder **

**Note      4 — Stockholders’ Equity **

**Note      5 — Initial Public Offering **

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*Accounting      for Derivative Financial Instruments Indexed to, and Potentially Settled in,      a      Company’s Own Stock.*

**Note      6 — Commitments **

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**Note      7—Income Taxes **

|                                            |   |  **Six                Months Ended** |   |  **Six                Months Ended** |   |
|-------------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------|--------|
|                                            |   | **June                30, 2008**          |   | **June                30, 2007**          |   |
| Current:                                        |   |                                      |   |                                      |   |   |   |
| Federal                taxes                    |   | $                                         | 29,675 |                                      | $      | 148,446 |   |
| State                taxes                      |   |                                      | 2,050  |                                      |   | 42,339 |   |
| Deferred                taxes                   |   |                                      |   |                                      |   | (21,315 | ) |
| Total                provision for income taxes |   | $                                         | 31,725 |                                      | $      | 169,472 |   |

**Note      8 **
**Subsequent      Events**

***Summary      of the Transaction***

----

***Market      Purchase***

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations **

***Summary      of the Transaction***

----

**Results      of Operations **

***Net      Income***

**Changes      In Financial Condition **

***Liquidity      and Capital Resources***

| • | Payment                  of the purchase price for the business combination;                                                                                                       |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                               |
| • | Payment                  of the non-accountable expense allowance and the deferred portion                  of the                  underwriting discount due to the underwriters; |
|    |                                                                                                                                                                               |
| • | Payment                  of any finder’s fees or professional fees and costs; and                                                                                            |

----

| • | Payment                  of any fees and costs the Company may incur in connection with                  any equity                  or debt financing relating to the business combination. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | approximately                  $200,000 for legal, accounting and other expenses attendant to                  the                  structuring and negotiating of a business combination;                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | approximately                  $300,000 for the due diligence and investigation of a target business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | approximately                  $115,000 in legal and accounting fees relating to our SEC reporting                  obligations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | approximately                  $120,000 in fees relating to our office space and certain general                  and                  administrative services;                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | approximately                  $240,000 for travel, general working capital that will be used                  for                  miscellaneous expenses and reserves, including for director and                  officer                  liability insurance premiums, deposits, down payments and/or funding                  of a                  “no shop” provision in connection with a prospective business transaction                  and for international travel with respect to negotiating and finalizing                  a                  business combination; and |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | approximately                  $75,000 for a reserve for liquidation expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

***Off-Balance      Sheet Arrangements***

***Contractual      Obligations***

***Forward      Looking Statements***

**Item      3. Quantitative and Qualitative Disclosures About Market Risk**

**Item      4. Controls and Procedures **

----

**PART      II — OTHER INFORMATION **

**Item      1. **
**Legal      Proceedings **

**Item      1A. Risk Factors **

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Item      3. Defaults Upon Senior Securities **

**Item      4. Submission of Matters to a Vote of the Security Holders**

**Item      5. Other Information **

----

**Item      6. Exhibits **

| **Number** |   | **Description**                                                                                                                                                                                                                              |
|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1        |   | Amended                and Restated Certificate of Incorporation**                                                                                                                                                                           |
| 3.2        |   | Amended                and Restated Bylaws**                                                                                                                                                                                                 |
| 4.1        |   | Specimen                Unit Certificate**                                                                                                                                                                                                   |
| 4.2        |   | Specimen                Common Stock Certificate**                                                                                                                                                                                           |
| 4.3        |   | Specimen                Warrant Certificate**                                                                                                                                                                                                |
| 4.5        |   | Form                of Warrant Agreement between American Stock Transfer & Trust Company                and the Registrant**                                                                                                             |
| 4.6        |   | Form                of Underwriters’ Purchase Option**                                                                                                                                                                                 |
| 10.1(a)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and Jack                Kang**                                                                                                        |
| 10.1(b)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and                Alwin Tan**                                                                                                        |
| 10.1(c)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and                Steven Wang**                                                                                                      |
| 10.1(d)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and Mark                Tan**                                                                                                         |
| 10.1(e)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and                Larry Liou**                                                                                                       |
| 10.1(f)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and                James Ma**                                                                                                         |
| 10.1(g)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and                Stanley Chang**                                                                                                    |
| 10.1(h)    |   | Letter                Agreement among the Registrant, Ferris, Baker Watts, Incorporated                and Ron                Harrod**                                                                                                       |
| 10.2       |   | Form                of Investment Management Trust Agreement between American Stock Transfer                & Trust Company and the Registrant**                                                                                         |
| 10.3       |   | Form                of Stock Escrow Agreement between the Registrant, American Stock                Transfer                & Trust Company and the Initial Stockholders**                                                               |
| 10.4       |   | Form                of Letter Agreement between NCIL and the Registrant regarding                administrative support**                                                                                                                    |
| 10.5       |   | Advance                Agreement between the Registrant and Jack Kang**                                                                                                                                                                      |
| 10.6       |   | Form                of Registration Rights Agreement among the Registrant, the Initial                Stockholders and Ferris, Baker Watts, Incorporated**                                                                                   |
| 10.7       |   | Warrants                Placement Agreement**                                                                                                                                                                                                |
| 10.8       |   | Form                of Letter Agreement between the Registrant, Jack Kang and Ferris,                Baker                Watts, Incorporated**                                                                                              |
| 31.1       |   | Certification                by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002*                                                                                                            |
| 31.2       |   | Certification                by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002*                                                                                                            |
| 32.1       |   | Certification                by 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                by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002*                               |
|       |   | *                 Filed                herewith                                                                                                                                                                                         |
|       |   | **                Incorporated by reference to the exhibits of the same number filed                with                the Registrant’s Registration Statement on Form S-1 or amendments thereto                (File No. 333-135705) |

----

**SIGNATURES**

|                                       |                                                    |                             |
|--------------------------------------------|---------------------------------------------------------|----------------------------------|
|                                       | **CHINA                HEALTHCARE ACQUISITION CORP.**   |
|                                  |                                               |                        |
| Date:                August 12, 2008  | By:                                           | /s/              Alwin Tan  |
|                                       | Alwin              Tan                                  |
|                                       | *Chief                Executive Officer and**President* |

|   |                                                                                        |                               |
|--------|---------------------------------------------------------------------------------------------|------------------------------------|
|   | By:                                                                               | /s/              Steven Wang  |
|   | Steven              Wang                                                                    |
|   | *Vice                President and Treasurer**Chief                Financial Officer*  |

----

**INDEX      TO EXHIBITS **

| **Number** |   | **Description**                                                                                                                                                                                               |
|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1       |   | Certification                by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
| 31.2       |   | Certification                by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
| 32.1       |   | Certification                by 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                by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

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