UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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 ~~March~~September 3130, 2010

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

For the transition period from ______to______.

Dongsheng Pharmaceutical International Co., Ltd.

(Exact name of registrant as specified in its charter)

Delaware		333-154787		26-2603989
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

~~Room~~China 10Bing’qi Plaza, ~~9th~~ Floor 17, ~~Building~~ No. ~~5 9 Gaoshengqiao Road~~69, ~~Dayi~~Zi ~~Louver~~Zhu ~~Plaza~~Yuan ~~Wuhou~~Rd, Hai’dian District, ~~Chengdu,~~Beijing ~~Sichuan Province~~ People’s Republic of China ~~610041~~100089 (Address of principal executive offices) (Zip Code)

+86 ~~(028) 8506~~-~~8768~~10-88580708 (Registrant’s telephone number, including area code)

~~Indestructible I, Inc.~~____________________________________________________

(Former Name or Former Address if Changed Since Last Report)

Copies to:

Joseph M Lucosky, Esq.

195 Route 9 South, 2nd Floor

Manalapan, NJ 07726

Tel. No. (732) 409-1212

Fax No. (732) 577-1188

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer.

Large Accelerated Filer o Accelerated Filer o Non-Accelerated Filer o Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes o No x

As of ~~May~~November 1415, 2010, there were 17,000,000 shares ~~outstanding~~ of the registrant’s common stock, par value $0.0001 per share, outstanding.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

FORM 10-Q

~~March~~September 3130, 2010

INDEX

PART I-- FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and ~~Result~~Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2521
Item 4.	Controls and Procedures	2521

PART II-- OTHER INFORMATION

Item 1.	Legal Proceedings	2622
Item 1A.	Risk Factors	26
Item 6.	Exhibits	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	(Removed and Reserved)	26
Item 5.	Other Information	26
Item 6.	Exhibits	26

Index

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited).

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.
(FORMERLY INDESTRUCTIBLE I, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
	March 31, 2010			June 30, 2009
(IN US DOLLARS)
	(Unaudited)
	September 30, 2010			June 30, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	96872,~~624~~127		$	~~620~~4,~~596~~395,515
Accounts receivable, net of allowance for doubtful accounts		4,143,536			3,582,261
Accounts receivable		2,065			72,021
Other receivables, net of allowance for doubtful accounts		704,691			39,877
Other receivables		332,356			191,961
Inventories		~~738~~306,~~756~~878			59152,~~693~~500
Advance to vendors		407,543			1,077,677
Advances to vendors		4,119,956			465,183
Deferred tax assets		24,933			360,302
VAT tax receivable		203,603			200,893
Loans to outside parties		410,008			-
Total current assets		5,836,985			5,478,073
Due from Related parties		123,806			111,155
Property, plant and equipment, net		113,040			112,655
Total current assets		6,649,897			5,851,561
Distribution deposit		418,463			412,894
Property, plant and equipment, net		114,695			91,259
Total Assets	$	6,368,488		$	6,003,622
Long-term loans to outside parties		46,631			1,129,944
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term loans to related party		1,480,942			1,358,843
Other Asset		1,026,699			1,452,664
Total Assets	$	9,318,864		$	9,884,271
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	36,~~241,676~~860		$	8200,~~123,101~~076
Advance from customers		1,589,949			752,784
Advances from customers		241,589			691,411
Other payable and accured liabilities		459,813			96,254
Other payables and accrued liabilities		694,501			419,235
Taxes payable		~~567~~508,~~959~~759			~~499~~257,~~285~~415
Total current liabilities		5,859,397			9,471,424
Due to related parties		-			21,366
Long-term liabilities		-			86,199
Total current liabilities		1,451,709			1,589,503
Total Liabilities		51,~~859~~451,~~397~~709			91,~~557~~589,~~623~~503
Stockholders' equity
Commitments and Contingencies
Preferred Stock, $0.0001 par value, 50,000,000 shares authorized,
Shareholders' equity
-0- shares issued and oustanding		-			-
Preferred stock, $0.0001 par value, 50,000,000 shares authorized,
Common Stock, $0.0001 par value, 200,000,000 shares authorized,
-0- shares issued and outstanding		-			-
17,000,000 shares and 15,830,000 issued and oustanding		1,700			1,583
Common stock, $0.0001 par value, 200,000,000 shares authorized,
Additional paid-in capital		249,273			249,390
17,000,000 shares issued and outstanding as of September 30, 2010 and June 30, 2010, respectively		1,700			1,700
Retained earnings		3,652,790			521,449
Additional paid-in capital		249,557			249,273
Accumulated other comprehensive loss		(444,296	)		(445,774	)
Retained earnings		5,016,590			4,578,936
Total stockholders' equity		3,459,467			326,648
Accumulated other comprehensive loss		(351,068	)		(415,790	)
Total Liabilities and Stockholders' Equity	$	9,318,864		$	9,884,271
Total shareholders' equity		4,916,779			4,414,119
Total Liabilities and Shareholders' Equity	$	6,368,488		$	6,003,622

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.
(FORMERLY INDESTRUCTIBLE I, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
	For The Nine Months Ended March 31,						For The Three Months Ended March 31,
	2010			2009			2010			2009
Revenues	$	12,024,838		$	12,290,922		$	2,371,294		$	4,733,695
Cost of sales		8,547,708			9,070,871			1,511,399			3,193,562
Gross profit		3,477,130			3,220,051			859,895			1,540,133
Operating expenses
Selling and distribution expenses		408,297			279,432			26,953			69,637
General and administrative expenses		279,805			825,898			115,643			680,635
Total operating expenses		688,102			1,105,330			142,596			750,272
Operating income		2,789,028			2,114,721			717,299			789,861
Other income (expenses)
Interest expenses		(5,610	)		(3,061	)		(75	)		(2,476	)
Recovery of doubtful accounts		1,341,956			-			1,030,526			-
Other income (expenses)		55,317			(2,934	)		57,781			(1,427	)
Total other income (expenses)		1,391,663			(5,995	)		1,088,232			(3,903	)
Income before income taxes		4,180,691			2,108,726			1,805,531			785,958
Provision for income taxes		1,049,349			527,181			451,382			196,489
Net income	$	3,131,342		$	1,581,545		$	1,354,149		$	589,469
Other comprehensive income/(loss)
Foreign currency translation adjustment		1,478			(6,693	)		742			2,007
Comprehensive income	$	3,132,820		$	1,574,852		$	1,354,891		$	591,476
Basic and diluted income per common share
Basic	$	0.20		$	0.10		$	0.09		$	0.04
Diluted	$	0.20		$	0.10		$	0.09		$	0.04
Weighted average common shares outstanding
Basic		15,855,620			15,830,000			15,908,000			15,830,000
Diluted		15,855,620			15,830,000			15,908,000			15,830,000

Index

The accompanying notes are an integral part of these condensed consolidated financial statements.

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.
(FORMERLY INDESTRUCTIBLE I, INC.)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN US DOLLARS)


	For The Three Months Ended September 30,
	2010			2009


Revenues	$	3,935,356		$	4,885,706

Cost of sales		2,825,983			3,530,241

Gross profit		1,109,373			1,355,465

Operating expenses
Selling and distribution expenses		168,927			145,883
General and administrative expenses		347,159			164,394
Total operating expenses		516,086			310,277

Operating income		593,287			1,045,188

Other expenses
Interest (expense) income		(401	)		63
Other expenses		(9,216	)		(1,801	)
Total other expenses		(9,617	)		(1,738	)

Income before income tax		583,670			1,043,450

Provision for income tax		146,016			261,549

Net income	$	437,654		$	781,901

Other comprehensive income
Foreign currency translation adjustment		64,722			731

Comprehensive income	$	502,376		$	782,632

Basic and diluted earnings per common share
Basic	$	0.03		$	0.05
Diluted	$	0.03		$	0.05

Weighted average common shares outstanding
Basic		17,000,000			15,830,000
Diluted		17,000,000			15,830,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.
(FORMERLY INDESTRUCTIBLE I, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
	For The Nine Months Ended March 31,
	2010			2009
Cash flows from operating activities
Net income	$	3,131,342		$	1,581,545
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation		10,436			5,391
Provison for (recovery of) doubtful accounts		(1,341,956	)		603,137
Changes in assets and liabilities:
(Increase) decrease in -
Account receivables		660,738			(1,209,113	)
Other receivables		(541,832	)		14,982
Inventories		(678,751	)		(1,690,951	)
Advance to vendors		670,626			(2,094,776	)
Prepaid expenses		-			17,354
Deferred tax asset		335,489			637,474
Loans to outside parties		673,834			(1,158,009	)
Other asset		426,819			2,864,195
Increase (decrease) in -
Accounts payable		(4,885,204	)		1,153,318
Advance from customers		836,301			387,207
Other payables and accrued liabilities		363,348			52,958
Tax payable		68,295			(5,694	)
Net cash provided by (used in) operating activities		(270,515	)		1,159,018
Cash flows from investing activities
Purchase of property and equipment		(33,799	)		(49,811	)
Loans to related parties		(94,828	)		(1,226,345	)
Net cash used in investing activities		(128,627	)		(1,276,156	)
Cash flows from financing activities
Proceeds from (repayment to) related party loans		(38,833	)		10,702
Payments of loans from outside parties		(86,226	)		-
Net cash provided by (used in) financing activities		(125,059	)		10,702
Effect of exchange rate changes on cash and cash equivalents		229			1,278
Net decrease in cash and cash equivalents		(523,972	)		(105,158	)
Cash and cash equivalents, beginning of period		620,596			361,000
Cash and cash equivalents, end of period	$	96,624		$	255,842
Supplemental disclosures of cash flow information:
Interest paid	$	4,599		$	1,634
Income taxes paid	$	665,070		$	1,063

Index

The accompanying notes are an integral part of these condensed consolidated financial statements.

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.
(FORMERLY INDESTRUCTIBLE I, INC.)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN US DOLLARS)

	For The Three Months Ended September 30,
	2010			2009

Cash flows from operating activities
Net income	$	437,654		$	781,901
Adjustments to reconcile net income to net cash in operating activities:
Depreciation		3,162			3,252
Stock options issued for services provided		284			-
Changes in assets and liabilities:
(Increase) decrease in -
Accounts receivables		70,111			(945,234	)
Other receivables		(136,222	)		(50,454	)
Inventories		(150,571	)		(231,725	)
Advances to vendors		(3,606,568	)		768,994
Other asset		-			110,154

Increase (decrease) in -
Accounts payable		(193,663	)		(1,655,113	)
Advances from customers		(453,870	)		153,165
Other payables and accrued liabilities		266,682			90,031
Taxes payable		245,023			373,138

Net cash used in operating activities		(3,517,980	)		(601,892	)

Cash flows from investing activities
Loans to outside parties		-			(197,029	)
Purchase of property and equipment		(2,039	)		-

Net cash used in investing activities		(2,039	)		(197,029	)

Cash flows from financing activities
Repayment of related party loans		-			90,935
Proceeds (repayments) from (to) related parties		(21,406	)		111,152

Net cash provided by (used in) financing activities		(21,406	)		202,087

Effect of exchange rate changes on cash and cash equivalents		18,037			259,595

Net decrease in cash and cash equivalents		(3,523,388	)		(337,239	)

Cash and cash equivalents, beginning of period		4,395,515			361,000

Cash and cash equivalents, end of period	$	872,127		$	23,761

Supplemental disclosures of cash flow information:
Interest paid	$	-		$	-
Income taxes paid	$	9,557		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Dongsheng Pharmaceutical International Co., Ltd. (the “Company”), formerly known as Indestructible I, Inc., reflect all material adjustments consisting of only normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the Management’s Discussion and Analysis and the consolidated financial statements and notes thereto included in Form 810-K as filed with the Securities and Exchange Commission on ~~March~~September 3122, 2010.

The results of operations for the ~~nine~~three months ended ~~March~~September 3130, 2010 are not necessarily indicative of the results to be expected for the entire year or for any other period.

Note 2. ORGANIZATION

Dongsheng Pharmaceutical International Co., Ltd. (the “Company”), was incorporated in the state of Delaware as of March 25, 2008. On March 25, 2010, the Company entered into a share exchange agreement and acquired all of the outstanding capital stock of Dynamic Bhorizon Limited, (“DBL”), a company incorporated in the Cayman Islands on April 8, ~~2009~~2010. Pursuant to the Exchange Agreement, DBL became a wholly-owned subsidiary of the Company. DBL has not carried on any substantive operations of its own. Instead, the Company owns 100% of Sichuan Xintai Pharmaceutical Co., Ltd. (“Xintai”), a company incorporated in Chengdu City, Sichuan Province, People’s Republic of China (“PRC”) in November 1999. Xintai has a registered capital in amount of RMB2,000,000 (equivalent to US$250,973) and is primarily engaged in pharmaceutical technology promotion, trading and warehousing of traditional Chinese medicine and bio-chemistry products.

In connection with the acquisition, the Company issued a total of 15,830,000 shares of common stock to the DBL Shareholders, their designees or assigns in exchange for all of the capital stock of DBL (the “Share Exchange”). Upon the completion of the Share Exchange, the stockholders of DBL own, in aggregate, 93.12% of the issued and outstanding capital stock of the Company.

The ~~acquisition~~business combination was accounted for as a reverse ~~merger~~acquisition under the purchase method of accounting since there was a change of control. Accordingly, DBL and its subsidiary, Xintai, will be treated as the continuing entity for accounting purposes.

InOn ~~March~~April 5, 2010, Indestructible I, Inc. changed its name to Dongsheng Pharmaceutical International Co., Ltd. to better reflect the Company’s business.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, DBL and Xintai. All significant inter-company balances and transactions have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, and disclosure of contingent liabilities at the date of the financial statements. Estimates are used for, but not limited to, the selection of the useful lives of property and equipment, provision necessary for contingent liabilities, fair values, revenue recognition, taxes, budgeted costs and other similar charges. Management believes that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from these estimates.

Cash and cash equivalents

The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company maintains bank accounts in the PRC. Total cash at ~~March~~September 3130, 2010 and June 30, 2010 amounted to US$96872,~~624~~127 and US$4,395,515 respectively, of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts and management believes it is not exposed to any risks on its cash in bank accounts.

Accounts receivable

Accounts receivable consists of balances due from customers for the sale of pharmaceutical products. Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible amounts.

The Company does periodical reviews as to whether the carrying values of accounts have become impaired. Balances over 90 days are considered past-due. The assets are considered to be impaired if the collectability of the balances become doubtful, accordingly, ~~the~~Management ~~management~~ estimates the ~~valuation~~ allowance for anticipated uncollectible receivable balances. When facts subsequently become available to indicate that the allowance provided requires an adjustment, then the adjustment will be classified as aprovision ~~change~~for inor ~~estimate~~recovery of doubtable amounts. As of ~~March~~September 3130, 2010 and June 30, ~~2009~~2010, ~~the~~no ~~total~~ allowance for doubtful ~~debts~~accounts was ~~US$99,733~~considered ~~and US$1,441,208, respectively~~necessary.

Inventories

The Company’s inventories consist of pharmaceutical products. Inventories are stated at the lower of cost (determined on a weighted average basis) or market. The management compares the cost of inventories with the fair market value and an allowance is made for writing down the inventories to fair market value, if lower than the cost. As of September 30, 2010 and June 30, 2010, no allowance for writing down the inventories to their fair market value is considered necessary.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventories

The Company’s inventories are composed of pharmaceutical products. Inventories are stated at the lower of cost (determined on a weighted average basis) or market. The management compares the cost of inventories with the fair market value and an allowance is made for writing down the inventories to fair market value, if lower than the cost. As of March 31, 2010 and June 30, 2009, no allowance for writing down the inventories to their fair market value is considered necessary.

Advances to vendors

Advances to vendors consist of balances paid for pharmaceuticals that have not been provided or received. Advances to vendors are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the ~~collectability~~receiving of the services and supplying of the materials become doubtful. The Company determines that no reserve is necessary ~~for~~at ~~the~~September ~~nine~~30, ~~months~~2010 ~~ended~~and ~~March~~June 3130, 2010 ~~and 2009~~.

Loans to outside parties

Loans to outside parties consist of various cash advances to unrelated companies with which the Company has business relationships.

Loans to outside parties are reviewed periodically as to whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the balances becomes doubtful. The Company determines that no reserve is necessary for the nine months ended March 31, 2010 and 2009.

Property and equipment

Property and equipment are recorded at cost less accumulated depreciation and any impairment losses. The cost of an asset comprises of its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditures incurred after the property and equipment have been put into operation, such as repairs and maintenance and overhaul costs, are normally expensed in the year in which it is incurred.

In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performances, the expenditure is capitalized as an additional cost of the asset.

Any gain or loss on disposal or retirement of a fixed asset is recognized in the profit and loss account and is the difference between the net sales proceeds and the carrying amount of the relevant asset. When property and equipment are retired or otherwise disposed of, the assets and accumulated depreciation is removed from the accounts and the resulting profit or loss is reflected in income.

Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized.

Long-lived assets

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~Depreciation~~The Company tests long-lived assets, including property, plant and equipment and other assets, for recoverability at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is ~~computed~~greater ~~using~~than its fair value. Assets are grouped and evaluated at the ~~straight-line~~lowest ~~method~~level ~~over~~for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated ~~useful~~results ~~lives~~in its evaluation of potential impairment and then compares the ~~assets,~~carrying ~~less~~amount ~~any~~of the asset to the future estimated ~~residual~~cash ~~value~~flows expected to result from the use of the asset. ~~Estimated~~If ~~useful~~the ~~lives~~carrying amount of the ~~assets~~asset ~~are~~exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as ~~follows:~~the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There was no impairment of long-lived assets for the three months ended September 30, 2010 and 2009.

~~Office~~Advances ~~equipments 5~~from ~~years~~customers

~~Vehicle 10~~Advances ~~years~~from customers consist of amounts received from customers relating to the sales of pharmaceuticals. The Company recognizes these funds as a current liability until the revenue can be recognized.

~~Any~~Income gain or loss on disposal or retirement of a fixed asset is recognized in the profit and loss account and is the difference between the net sales proceeds and the carrying amount of the relevant asset. When property and equipment are retired or otherwise disposed of, the assetstaxes

The Company accounts for income taxes using an asset and ~~accumulated~~liability ~~depreciation~~approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are ~~removed~~provided ~~from~~for the ~~accounts~~net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the ~~resulting~~amounts ~~profit~~used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or ~~loss~~that future deductibility is ~~reflected~~uncertain in(Please ~~income~~see Note 9 for details on valuation allowance).

~~Expenditures~~Since ~~for~~the ~~maintenance~~Company ~~and~~was ~~repairs~~incorporated ~~are~~in ~~charged~~2008, toincome ~~expense~~tax asreturns ~~incurred.~~for ~~Additions,~~the ~~renewals~~years 2008 and ~~betterments~~2009 are ~~capitalized~~subject to examination by U.S. tax authorities.

Impairment of long-lived assets

The Company applies the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, which was subsequently codified within Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) No. 360, “Property, Plant and Equipment”. ASC 360 requires long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property, plant and equipment and other assets, for recoverability at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There was no impairment of long-lived assets for the nine months ended March 31, 2010 and 2009.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Advance from customers

Advance from customers consist of amounts received from customers relating to the sales of pharmaceuticals. The Company recognizes these funds as a current liability until the revenue can be recognized.

Income taxes

The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.

Revenue recognition

The Company recognizes revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed or determinable and (iv) collection of the resulting receivable is reasonably assured. Revenue is not recognized until title and risk of loss is transferred to the customer, which occurs upon delivery of goods, and objective evidence exists that customer acceptance provisions have been met. Deposits or advance payments from customers prior to delivery of goods and passage of title of goods are recorded as ~~advance~~advances from customers.

Stock-based compensation

The Company accounts for stock-based compensation in accordance with ASC 718-10, “Share-Based Payment Arrangement.” Compensation expense associated with equity grants is recognized ratably over the requisite service period based on the grant date fair value. The fair value of options is estimated on the date of grant using the appropriate valuation models based on relevant facts and circumstances as determined by management.

Comprehensive income (loss)

Comprehensive income and loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income arose from the changes in foreign currency exchange rates.

Fair value of financial instruments

The Company follows the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~Cost~~As of ~~sales~~September 30, 2010, the carrying amount of cash and cash equivalent, accounts receivables, other receivables, inventories, advances to vendors, VAT tax receivables, and current liabilities are approximate fair value due to the short term nature. Distribution deposit represents deposit with one of our major vendors and is fully refundable after three years. Although the amount is impacted by foreign currency translation adjustments at each reporting period, we believe the carry amount of distribution deposit approximates fair value as it is not exposed to other significant price or credit risk.

Costs of sales include costs of the pharmaceuticals sold and used, inbound freight costs, cost of direct labor and overhead. Write-down of inventory to lower of cost or market is also recorded in cost of sales.

Selling, general and administrative costs

Selling, general and administrative costs consist primarily of salaries and commissions for sales representatives, salaries for administrative staffs, rent expenses, depreciation expense and employee benefits for administrative staffs.

Comprehensive income

Statement of Financial Accounting Standards ("SFAS") No. 130, “Reporting Comprehensive Income”, which was subsequently codified within ASC 220, “Comprehensive Income”, requires disclosure of all components of comprehensive income and loss on an annual and interim basis. Comprehensive income and loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income arose from the changes in foreign currency exchange rates.

Statement of Cash Flows

In accordance with SFAS 95, "Statement of Cash Flows," which was subsequently codified within ASC 230, “Statement of Cash Flows”, cash flows from the Company's operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

Fair Value of Financial Instruments

The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, advances to suppliers, other receivables, accounts payable, accrued expenses and taxes payable approximate their fair value due to the short-term nature. The carrying amount of long-term liabilities approximates the fair value based on the Company's expected borrowing rate for debt with similar remaining maturities and comparable risk in market. The Company did not identify any assets or liabilities that are required to be presented on the consolidated balance sheets at fair value in accordance with ASC 820.

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2010

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings Per Share

~~The~~Basic ~~Company computes~~ earnings per share (“EPS’) in accordance with SFAS 128, “Earnings Per Share”, which was subsequently codified within ASC 260, “Earnings Per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended September 30, 2010 and 2009, all options were excluded from the calculation of diluted earnings per share because the exercise prices of $1.00 was higher than the average closing bid price of the Company’s stock during the reporting period.

Foreign currency translation

The Company’s ~~and~~financial ~~DBL~~information ~~maintains~~is ~~their~~presented ~~accounting~~in ~~records~~US indollars. The functional currency of the ~~United~~Company ~~States~~is ~~Dollars~~Renminbi (“~~US$~~RMB”), ~~whereas~~the ~~Xintai~~currency ~~maintain~~of ~~its~~the ~~accounting~~PRC. ~~records~~Transactions at the Company which are denominated in currencies other than RMB are translated into RMB at the ~~currency~~exchange rate quoted by the People’s Bank of ~~Renminbi~~China ~~(“RMB”),~~prevailing at the ~~currency~~dates of the ~~PRC~~transactions. ~~For~~Exchange ~~financial~~gains ~~reporting~~and ~~purpose,~~losses ~~RMB~~resulting ~~have~~from ~~been~~transactions ~~translated~~denominated ~~into~~in ~~UD$~~a ascurrency ~~the~~other ~~reporting~~than ~~currency~~that inRMB ~~accordance~~are ~~with~~included ~~Statement~~in statements of ~~Financial~~operations ~~Accounting~~as ~~Standard~~exchange ~~(“SFAS”) No~~gains. ~~52,~~ ~~“Foreign~~The ~~Currency~~financial ~~Translation”,~~statements ~~which~~of ~~was~~the ~~subsequently~~Company ~~codified~~have ~~within~~been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive ~~loss~~income in ~~stockholders~~shareholders’ equity.

	March 31, 2010		June 30, 2009
	September 30, 2010		June 30, 2010		September 30, 2009
	(Unaudited)
Period End RMB: US$ exchange rate		6.6912		6.7814		6.8263
RMB: US$ exchange rate		6.8259		6.8307
Average period RMB: US$ exchange rate		6.7690		6.8275		6.8309
Average RMB: US$ exchange rate		6.8286		6.8591

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation.

109

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of accounts receivable and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its clients' financial condition and customer payment practices to minimize collection risk on accounts receivable.

Shipping costs

Shipping costs are expensed as incurred. Shipping costs were included in selling expenses and amounted to $19,~~232~~966 and $3,~~250~~808 for the three months ~~and~~September $330,~~255~~ ~~and $7,586 for the nine months ended March 31,~~ 2010 and 2009, respectively.

Advertising

Advertising is expensed as incurred. Advertising expenses were included in selling expenses and amounted to $13,~~175~~664 and $~~-0-~~42,608 for the three months ~~and $43,794 and $16,993 for the nine months~~ ended ~~March~~September 3130, 2010 and 2009, respectively.

Risks and uncertainties

The operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

1110

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~Recent~~Risks ~~accounting~~of ~~pronouncements~~Losses

InThe ~~January~~Company ~~2010,~~is ~~FASB~~potentially ~~issued~~exposed ~~ASU~~to ~~No.~~risks ~~2010-06~~of –losses ~~Improving~~that ~~Disclosures~~may ~~about~~result ~~Fair~~from ~~Value~~business ~~Measurements.~~interruptions, ~~This~~injury ~~update provides amendments~~ to ~~Subtopic~~others ~~820-10~~(including ~~that requires new disclosure as follows: 1~~employees) ~~Transfers~~ in and ~~out~~damage ofto ~~Levels~~property. These 1losses ~~and~~may ~~2. A~~be ~~reporting~~uninsured, ~~entity~~especially ~~should~~due ~~disclose~~to ~~separately~~ the ~~amounts~~fact ofthat ~~significant~~the ~~transfers~~Company’s inoperations ~~and~~are ~~out~~in ofChina, ~~Level~~where 1business ~~and~~insurance ~~Level~~is 2not ~~fair~~readily ~~value measurements and describe the reasons for the transfers~~available. 2) ~~Activity~~If: ~~in Level 3 fair value measurements. In the reconciliation for fair value measurements using significant unobservable inputs~~ (~~Level 3~~i), ~~a reporting entity should present separately~~ information ~~about purchases, sales, issuances, and settlements (that~~ is, onavailable abefore ~~gross~~the ~~basis~~Company’s ~~rather~~financial ~~than~~statements asare ~~one~~issued ~~net~~or ~~number).~~are ~~This~~available ~~update provides amendments~~ to ~~Subtopic~~be ~~820-10~~issued indicates that ~~clarifies~~suchloss ~~existing~~is ~~disclosures~~probable asand ~~follows: 1~~(ii) ~~Level~~ ofthe ~~disaggregation.~~amount ~~A reporting entity should provide fair value measurement disclosures for each class~~ of ~~assets~~the ~~and~~loss ~~liabilities.~~can Abe ~~class~~reasonably isestimated, ~~often~~an aestimated ~~subset~~loss ofwill ~~assets~~be oraccrued ~~liabilities~~by ~~within~~ a ~~line~~charge ~~item~~to ~~in the statement of financial position~~income. If Asuch ~~reporting~~loss ~~entity~~is probable ~~needs~~but ~~to use judgment in determining~~ the ~~appropriate~~amount ~~classes~~ of ~~assets and liabilities. 2)~~loss ~~Disclosures~~cannot ~~about~~be ~~inputs~~reasonably ~~and~~estimated, ~~valuation techniques. A reporting entity should provide disclosures about~~ the ~~valuation~~loss ~~techniques~~shall ~~and~~be ~~inputs~~charged ~~used~~ to ~~measure~~the ~~fair~~income ~~value~~of ~~for~~the ~~both~~period ~~recurring and nonrecurring fair value measurements. Those disclosures are required for fair value measurements that fall~~ in ~~either~~which ~~Level 2 or Level 3. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for~~ the ~~disclosures~~loss ~~about~~can ~~purchases,~~be ~~sales,~~reasonably ~~issuances,~~estimated and ~~settlements~~shall innot ~~the~~be ~~roll~~charged ~~forward~~retroactively ofto ~~activity~~an inearlier ~~Level 3 fair value measurements~~period. As ~~Those~~of ~~disclosures~~September ~~are effective for fiscal years beginning after December 15~~30, 2010, and ~~for~~2009, ~~interim~~the ~~periods within those fiscal years. The~~ Company has ~~determined~~not ~~the~~experienced ~~adoption~~any ofuninsured ~~this~~losses ~~ASU~~from ~~does~~injury ~~not~~to ~~have~~others aor ~~material~~other ~~impact on its financial statements~~losses.

InNote ~~December, 2009, FASB issued ASU No~~4. ~~2009-17,~~ADVANCES ~~Improvements~~TO to Financial Reporting by Enterprises Involved with Variable Interest Entities. This Accounting Standards Update amends the FASB Accounting Standards Codification for the issuance of FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). The amendments in this Accounting Standards Update replace the quantitative-based risks and rewards calculation for determining which reporting entity, if any, has a controlling financial interest in a variable interest entity with an approach focused on identifying which reporting entity has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. An approach that is expected to be primarily qualitative will be more effective for identifying which reporting entity has a controlling financial interest in a variable interest entity. The amendments in this Update also require additional disclosures about a reporting entity’s involvement in variable interest entities, which will enhance the information provided to users of financial statements. The Company has determined the adoption of this ASU does not have a material impact on its financial statements.VENDORS

The Company periodically makes advances to certain vendors for purchases of advertising materials and equipment and records those advances as advance to vendors. Advances to vendors as of September 30, 2010 and June 30, 2010 amounted to $4,119,956 and $465,183, respectively.

Note 5. PROPERTY AND EQUIPMENT

As of September 30, 2010 and June 30, 2010, property and equipment was as follows:

		2010
	Useful Lives	September 30			June 30
Office equipment	5 years	$	28,744		$	111,717
Automobiles	10 years		117,020			30,071
			145,764			141,788

Less: accumulated depreciation			(32,724	)		(29,133	)

Property and equipment, net		$	113,040		$	112,655

Depreciation expense was $3,162 and $3,252 for the three months ended September 30, 2010 and 2009.

Note 6. RELATED PARTY TRANSACTIONS

As of September 30, 2010 and June 30, 2010, the Company had receivables from and payables to related parties as follows:

	2010
	September 30		June 30
Beijing Dongsheng Kexin Biology Curative Co.,Ltd	$	-	$	-
Zhu Xiaomei		-		(21,366	)
Total	$	-	$	(21,366	)

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 6. RELATED PARTY TRANSACTIONS (Continued)

Ms. Xiaomei Zhu is the sister of Mr. Xiaodong Zhu. The balance due to Ms. Zhu was fully paid off as of September 30, 2010.

Note 7. DISTRIBUTION DEPOSIT

Distribution deposit represents the deposit paid to one major vendor of the Company for a three-year exclusive distribution contract signed on December 25, 2009. This contract enables the Company to maintain a long-term relationship with such vendor to purchase products at stabilized cost. As of September 30, 2010 and June 30, 2010, the Company had distribution deposit of $418,463 and $412,894, respectively.

Note 8. VALUE ADDED TAX RECEIVABLE

Value added tax receivable represents value added taxes (“VAT”) paid on purchases made with the relevant supporting invoices (input VAT), which are to be used in future years (see Note 8 b). As of September 30, 2010 and June 30, 2010, the Company’s unused input VAT totaled $203,603 and $200,893, respectively.

Note 9. TAXES

(a) Corporation income tax (“CIT”)

Under the Income Tax Laws of PRC, Chinese companies are generally subject to an income tax at an effective rate on income reported in the statutory financial statements after appropriate tax adjustments. The PRC local government has provided various incentives to companies in order to encourage economic development. Such incentives include reduced tax rates, loss carry-forward and other measures.

The Company did not generate any taxable income outside of the PRC for the three months ended September 30, 2010 and 2009. The Company’s operational subsidiary “Xintai” was incorporated in Sichuan Providence, China. The Management does not expect to repatriate Xintai’s net income back to US in the near future, therefore Xintai is governed by the Income Tax Law of the People’s Republic of China concerning the private-run enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.

On March 16, 2007, the National People’s Congress of China approved the Corporate Income Tax Law of the People’s Republic of China (the New CIT Law), which is effective from January 1, 2008. Under the current law, the corporate income tax rate applicable to all Companies, including both domestic and foreign-invested companies, will be 25%, replacing the previous applicable tax rate of 33%. However, pending the detailed implementation rulings from the tax authorities, some of the tax concession granted to eligible companies prior to the new CIT laws may be grandfathered. As of September 30, 2010 and June 30, 2010, the Company had taxes payable as follows:

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 49. ~~ADVANCE~~TAXES ~~TO VENDORS~~(Continued)

The Company periodically makes advances to certain vendors for purchases of advertising materials and equipment and records those advances as advance to vendors. These advances are considered common business practice in China and are fully refundable. No allowance is deemed necessary.

	2010
	September 30		June 30

VAT payable	$	45,390	$	98,929
Income tax payable		457,490		154,846
Other taxes and fees		5,879		3,640

Total	$	508,759	$	257,415

~~Note~~The 5Company was incorporated in the United States. ~~LOANS~~It TOis ~~OUTSIDE~~governed ~~PARTIES~~by the Income Tax law of United States. It incurred net operating losses for U.S. income tax purposes for the three months ended September 30, 2010. The net operating loss carry forwards, which was resulted from administrative expenses, for United States income tax purposes amounted to $284 and $-0- as of September 30, 2010 and 2009. These loss carry forwards, which may be available to reduce future periods' taxable income, will expire, if not utilized, beginning in 2030. Management believes that the realization of the benefits arising from this loss appear to be uncertain due to Company's limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance at September 30, 2010 for the temporary difference related to the loss carry-forwards. Management reviews this valuation allowance periodically and makes adjustments as warranted. The valuation allowance increased by $96 during the three months ended September 30, 2010 and -$0- during the three months ended September 30, 2009..

As of March 31, 2010 and June 30, 2009, the loans to outside parties included the following:

	2010
	September 30			June30
Current Deferred Tax Assets
Allowance for doubtful accounts	$	-		$	-
Net operating loss carry forwards		96			2,462
Less: Valuation Allowance		(96	)		(2,462	)

Net Deferred Tax Assets	$	-		$	-

Names of Borrowers	Loan Term	Annual Interest Rate		Loan Balance as of
				March 31, 2010		June 30, 2009
				(Unaudited)
Harbin Maidesen Artistic Design Co., Ltd.	From Jul. 24, 2009 to Dec. 31, 2011		0.1%	$	46,631	$	46,599
Beijing Anpudi Science & Technology Co., Ltd.	From Jun. 6, 2008 to Dec. 31, 2011		0.1%		-		351,355
Harbin Maidesen Artistic Design Co., Ltd.	From Jan. 31, 2009 to Dec. 31, 2010		0.1%		392,873		731,990
Beijing Yashi Club	From Dec. 31, 2009 to Jun. 30, 2010		0.0%		17,135		-
Total				$	456,639	$	1,129,944

(b) Value added tax

The ~~above~~Company ~~loans~~is ~~are~~subject ~~unsecured~~to VAT for trading and warehousing pharmaceutical products. The ~~loan~~applicable ~~from~~VAT ~~Beijing~~tax ~~Anpudi~~rate ~~Science~~is &17% ~~Technology~~for Coproducts sold in the PRC., ~~Ltd~~The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (“output VAT”) less VAT paid on purchases made with the relevant supporting invoices (“input VAT”). ~~was~~Under ~~repaid~~the incommercial ~~2010~~practice of the PRC, the Company paid VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the

~~Note~~revenue 6is recognized and the date on which the tax invoice is issued. ~~RELATED~~Such ~~PARTY~~timing ~~TRANSACTIONS~~difference may result in VAT receivables.

As of March 31, 2010 and June 30, 2009, the Company had receivables from related parties as follows:

	March 31, 2010		June 30, 2009
	(Unaudited)
Beijing Dongsheng Kexin Biology Curative Co.,Ltd	$	1,480,942	$	1,358,843
Ms. Xiaomei Zhu		36,901		111,155
Mr. Xiaodong Zhu		86,904		-
Total	$	1,604,748	$	1,469,998

Beijing Dongsheng Kexin Biology Curative Co., Ltd. (“Dongshen Kexin”) is owned by Mr. Xiaodong Zhu, CEO and the majority shareholder of the Company. The balance with Dongshen Kexin has a term from July 3, 2008 to December 31, 2011. The loan is unsecured and bears an annual interest of 0.1%.

Ms. Xiaomei Zhu is the sister of Mr. Xiaodong Zhu. The balances with Mr. Zhu and Ms. Zhu are unsecured and bear no interest and have no fixed repayment date. The Company expects the entire amount of the loan be settled within one year.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 710. SHAREHOLDERS’ ~~PROPERTY, PLANT AND EQUIPMENTS~~EQUITY

AsOn of March 3125, 2010, the Company entered into share exchange transaction which has been accounted for as a reverse acquisition and ~~June~~re-capitalization ~~30,~~under ~~2009~~the purchase method of accounting since there has been a change of control. In connection with this transaction, the ~~detail~~Company issued 15,830,000 shares of ~~property~~its common stock to DBL shareholders. Prior to the Share Exchange, ~~plant~~the Company had 16,700,000 shares of common stock issued and ~~equipment~~outstanding ~~was~~at as$.0001 ~~follows:~~per share. Before the closing of the Share Exchange transaction, the

	March 31, 2010			June 30, 2009
	(Unaudited)
Automobiles	$	110,989		$	77,122
Office equipment		29,875			29,854
Sub-total		140,864			106,976
Less: accumulated depreciation		(26,169	)		(15,717	)
Property, plant and equipment, net	$	114,695		$	91,259

Company retired 15,530,000 shares of common stock. As a result of the reverse acquisition, the equity accounts of the Company, prior to the share exchange date, has been retroactively restated so that the ending outstanding share balance as of the share exchange date is equal to the number of post share-exchange shares.

~~Depreciation~~The ~~expense~~Company ~~was~~computes ~~$2,774~~the ~~and~~weighted-average $2number of common shares outstanding in accordance with ASC 805,~~624~~ ~~for~~which states that in calculating the ~~three~~weighted ~~months~~average ~~and~~shares ~~$10,436~~when ~~and~~a ~~$5,391~~reverse ~~for~~acquisition ~~nine~~takes ~~months~~place ~~ended~~in ~~March~~the ~~31,~~middle ~~2010~~of ~~and~~the ~~2009~~year, ~~respectively~~the number of common shares outstanding from the beginning of that period to the acquisition date shall be computed on the basis of the weighted-average number of common shares of the legal acquiree (the accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement. The number of common shares outstanding from the acquisition date to the end of that period shall be the actual number of common shares of the legal acquirer (the accounting acquiree) outstanding during that period.

Note 811. ~~OTHER ASSETS~~ CONCENTRATION

~~Other~~Three ~~assets~~major ~~represent~~vendors ~~value~~provided ~~added~~approximately ~~taxes~~90.48% ~~paid~~of ~~on purchases made with~~ the ~~relevant~~Company’s ~~supporting~~purchases ~~invoices~~of ~~(input~~inventories ~~VAT),~~for ~~which can be used in~~ the ~~following~~three ~~years~~months ~~(see~~ended ~~Note~~September ~~10 b). As of March 31~~30, 2010 ~~and June 30~~, ~~2009,~~with ~~the~~each ~~Company’s~~vendor ~~unused~~individually ~~input~~accounting ~~VAT~~for ~~amounted~~approximately ~~to US$1~~45.45%,~~026,699~~ 35.13% and ~~US$1,452,664, respectively~~9.91%.

~~Note~~Four 9major vendors provided approximately 69.23% ~~LONG-TERM~~of ~~LOAN~~the Company’s purchases of inventories for the year ended September 30, 2009, with each vendor individually accounting for 25.08%, 21.29%, 11.60% and 11.26%.

~~The~~None ~~long-term loan as~~ of ~~June~~sales ~~30,~~to ~~2009~~any ~~represents~~individual acustomer ~~working~~exceeds ~~capital~~10% ~~loan~~of ~~from~~the ~~Shenyang~~Company’s ~~Zhonghai~~total ~~Bio-Chemical~~sales ~~Technology~~for ~~Co.,~~the ~~Ltd.~~three ~~The~~months ~~loan~~ended ~~was~~September ~~repaid~~30, ~~at the end of 2009~~2010.

~~Note~~Sales to five major customers accounted for approximately 65.92% of the Company’s total sales for the three months ended September 30, 2009, with each customer individually accounting for 18.00%, 15.58%, 11.52%, 10.64% ~~TAXES~~and 10.18%.

~~(a)~~The ~~Corporation~~sales ~~income~~revenue ~~tax~~from ~~(“CIT”)~~one of our major products provided approximately 92.72% and 90.32% of the Company’s total revenue for the three months ended September 30, 2010 and 2009, respectively.

The Company did not generate any taxable income outside of the PRC for the year ended June 30, 2009. The Company is governed by the Income Tax Law of the People’s Republic of China concerning the private-run enterprises, which are generally subject to tax at a new statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 1012. ~~TAXES (Continued)~~ COMMITMENTS

OnThe ~~March~~commitments ~~16,~~are ~~2007,~~primarily the ~~National~~rental ~~People’s~~for ~~Congress of China approved~~ the ~~Corporate Income Tax Law of the People~~Company’s ~~Republic~~office ofspace ~~China (the New CIT Law), which is effective from January 1, 2008. Under the new law, the corporate income tax rate applicable to all Companies, including both domestic~~ and ~~foreign-invested companies, will be 25%, replacing the previous applicable tax rate of 33%~~warehouse. ~~However,~~As ~~pending~~of ~~the~~September ~~detailed~~30, ~~implementation rulings from the tax authorities~~2010, ~~we believe that some of~~ the ~~tax~~commitments ~~concession~~related ~~granted~~ to ~~eligible companies prior to~~ the ~~new~~above ~~CIT~~rental ~~laws~~are ~~will~~as ~~be grandfathered.~~follows:

The income tax expenses for the three and nine months ended March 31, 2010 and 2009 are as follows:

Twelve Months Ended September 30,	US$

2011		208,092
2012		122,480
2013		6,934
Thereafter		-
	$	337,506

Note 13. CONTINGENCIES

	For the nine months ended March 31,				For the three months ended March 31,
	2010		2009		2010		2009
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Income Taxes Expenses
Current	$	713,860	$	33,323	$	193,787	$	33,323
Deferred		335,489		493,858		257,595		163,166
Total	$	1,049,349	$	527,181	$	451,382	$	196,489

In January 2010, Chongqing Yidong Pharmaceuticals Co., Ltd. (“Yidong”) filed a lawsuit against the Company at the People’s Court of Yuzhong District, Chongqing City, China. Yidong claims compensation in an amount of RMB1,520,040 (equivalent to US$222,648) along with court fees for its alleged losses. Although the Company believes the plaintiff’s allegation is based on a falsified sales contract, a judgment order has not been issued and the Company cannot assure the judgment will be given in the Company’s favor. On July 27, 2010, the Judge issued a judicial authentication order on the signature on the contract that Dongsheng had signed with Yidong. If the signature proves to be fraudulently added by Yidong, the Company will prevail. However there is a remote possibility that the judicial authentication of the signature fails, which may result judgment order for Dongsheng to compensate Yidong. However the Company believes this possibility is remote and therefore no accrual has been provided. As of September 15, 2010, the judge has not announced any results on judicial authentication or other judgment order related to this case.

~~Under~~Note ~~the Income Tax Laws of PRC, Chinese companies are generally subject to an income tax at an effective rate on income reported in the statutory financial statements after appropriate tax adjustments~~14. ~~The PRC local government has provided various incentives to companies in order to encourage economic development. Such incentives include reduced tax rates, loss carry~~STOCK-~~forward~~BASED and other measures. As of July 31, 2006, the Company had accumulated net operating losses of RMB31,305,069. In January 2007, the Company obtained approval from the local tax authority to carry forward these net operating losses for income tax purpose for 5 years (from 2007 to 2011). By June 2009, the benefit of the loss carryforwards was fully utilized. The reserve for doubtful accounts, give rise to deferred tax assets shown as follows:COMPENSATION

	March 31, 2010		June 30, 2009
	(Unaudited)
Current Deferred Tax Assets
Allowance for doubtful accounts	$	24,933	$	360,302

The Company’s board of directors adopted the Dongsheng Pharmaceutical International Co., Ltd. 2010 Equity Incentive Plan (the “2010 Plan”) on September 3, 2010. The 2010 Plan is administered by the board of directors. The 2010 Plan provides for the grant of qualified and non-qualified stock options. In no event shall the aggregate number of shares of the Company’s common stock that may be issued pursuant to incentive stock options exceed nine hundred thousand (900,000) shares. Further, the maximum number of shares granted hereunder to any one 2010 Plan participant may not exceed thirty percent (30%) of the total shares subject to the 2010 Plan.

On September 3, 2010, the Board of Directors of the Company approved the issuance of stock options to an officer to purchase up to 150,000 shares of the Company’s common stock. This Option shall vest as follows: (i) The first 50,000 shares will be fully vested as of May 15, 2011; (ii) the second 50,000 shares will be fully vested as of May 15, 2012; (iii) the third 50,000 shares will be fully vested as of May 15, 2013.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 1014. ~~TAXES~~STOCK-BASED COMPENSATION (Continued)

On September 28, 2010, the Board of Directors of the Company approved the issuance of stock options to an independent director to purchase up to 30,000 shares of the Company’s common stock. This Option shall vest as follows: (a) 10,000 stock options to vest on October 1, 2011; (b) ~~Value~~10,000 ~~added~~stock ~~tax~~options to vest on October 1, 2012, contingent upon the renewal of the Director Agreement from September 29, 2011 to September 29, 2012; and (c) 10,000 stock options to vest on October 1, 2013, contingent upon the renewal of the Director Agreement from September 29, 2012 to September 29, 2013.

The Company isaccounts ~~subject~~for stock-based tocompensation associated ~~value~~with ~~added~~the ~~tax~~2010 ~~("VAT")~~Equity ~~for~~Incentive ~~trading~~Plan ~~and~~in ~~warehousing~~accordance ~~pharmaceutical~~with ~~products~~ASC 718-10, “Share-Based Payment Arrangement.”. The ~~applicable~~Company ~~VAT~~estimates ~~tax~~the ~~rate~~fair isvalue ~~17%~~of ~~for~~stock ~~products~~options ~~sold~~granted inusing the ~~PRC.~~Black-Scholes model ~~The~~and ~~amount~~assumptions ofas ~~VAT~~to ~~liability~~the isfair ~~determined~~value byof ~~applying~~the common stock on the ~~applicable~~grant ~~tax~~date, ~~rate~~expected toterm, ~~the~~expected ~~invoiced~~volatility, ~~amount~~risk-free rate of ~~goods~~interest ~~sold~~and ~~(output~~an ~~VAT)~~assumed ~~less~~dividend ~~VAT~~yield. For ~~paid~~awards ongranted, ~~purchases~~the ~~made~~fair ~~with~~value of the ~~relevant~~common ~~supporting~~stock ~~invoices~~is ~~(input~~generally ~~VAT).~~determined ~~Under~~based on the ~~commercial~~average ~~practice~~closing ofbid ~~the~~price ~~PRC,~~during the ~~Company~~reporting ~~paid~~period. The ~~value~~Company ~~added~~estimated ~~taxes~~the ~~("VAT")~~expected volatility based on ~~tax~~the ~~invoices~~historical ~~issued~~volatility of the Company’s common stock. The ~~tax~~Company ~~invoices~~calculated ~~may~~the beexpected ~~issued~~life ~~subsequent~~of tooptions using the ~~date~~simplified onmethod ~~which~~as ~~revenue~~prescribed isby ~~recognized,~~the ~~and~~Stock ~~there~~Compensation ~~may~~Subtopic beof athe ~~considerable~~FASB ~~delay~~Codification, ~~between~~due to the ~~date~~Company’s onlimited ~~which~~employee ~~the~~exercises ~~revenue~~of isits ~~recognized~~options. The ~~and~~assumed ~~the~~dividend ~~date~~yield onis ~~which~~based upon the ~~tax~~Company’s ~~invoice~~expectation isof ~~issued.~~not ~~Such~~paying ~~timing~~any ~~difference~~dividends ~~due~~in to the ~~input~~foreseeable ~~VAT~~future. ~~ahead~~The ofrisk-free ~~output~~rate ~~VAT~~is ~~may~~based ~~result~~on the U.S. Treasury yield curve in ~~VAT~~effect ~~receivables. The~~at ~~Company~~the ~~records~~time ~~such~~of ~~VAT~~grant ~~receivables~~for ~~under~~maturities ~~other~~similar ~~assets~~to the expected term.

~~(c)~~During ~~Tax~~the ~~payable~~three months ended September 30, 2010, the assumptions used in calculating the fair value of options granted using the Black-Scholes option pricing model are as follows:

As of March 31, 2010 and June 30, 2009, the Company had taxes payable as follows:

Risk-free interest rate	1.00%
Expected life of the options	3 years
Expected volatility	50%
Expected dividend yield	0.00%

	March 31, 2010		June 30, 2009
	(Unaudited)
VAT payable	$	112,175	$	118,429
Income tax payable		452,997		377,864
Other taxes and fees		2,787		2,992
Total	$	567,959	$	499,285

The total stock-based compensation expense recognized in the accompanying condensed consolidated statement of income for both three months periods ended September 30, 2010 and 2009 were $284 and $0 respectively, which are included in general and administrative expenses. As of September 30, 2010, $11,216 of compensation expense related to the options issued under the 2010 Plan was unrecognized.

~~Note~~The ~~11. STOCKHOLDERS’~~following ~~EQUITY~~table summarizes the stock option activities of the Company in presented period:

In March 2010, the Company entered into share exchange transaction which has been accounted for as a reverse merger under the purchase method of accounting since there has been a change of control.

In connection with the Share Exchange consummated on March 25, 2010, the Company issued 15,830,000 shares of its common stock to the DBL shareholders. Prior to the Share Exchange, the Company had 16,700,000 shares of common stock issued and outstanding at $.0001 per share. Before the closing of the Share Exchange transaction, the Company retired 15,530,000 shares of common stock.

As a result of the reverse merger, the equity account of the Company, prior to the share exchange date, has been retroactively restated so that the ending outstanding share balance as of the share exchange date is equal to the number of post share-exchange shares.

Index

DONGSHENG PHARMACEUTICAL INTERNATIONAL CO., LTD.

(FORMERLY INDESTRUCTIBLE I, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2010~~ (UNAUDITED)

Note 1114. ~~STOCKHOLDERS’~~ ~~EQUITY~~STOCK-BASED COMPENSATION (Continued)

The Company computes the weighted-average number of common shares outstanding in accordance with ASC 805, which states that in calculating the weighted average shares when a reverse merger takes place in the middle of the year, the number of common shares outstanding from the beginning of that period to the acquisition date shall be computed on the basis of the weighted-average number of common shares of the legal acquiree (the accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement. The number of common shares outstanding from the acquisition date to the end of that period shall be the actual number of common shares of the legal acquirer (the accounting acquiree) outstanding during that period.

Three Months Ended September 30,2010	Option outstanding		Weighted average exercise price		Life in years

Outstanding, June 30, 2010		-		-		-
Granted		180,000		1.00		3
Forfeited		-		-		-
Exercised		-		-		-
Outstanding, September 30, 2010		180,000	$	1.00	$	3

Note 1215. ~~COMMITMENTS~~ SUBSEQUENT EVENT

~~The~~On ~~commitments~~October ~~are~~6, ~~primarily~~2010, the ~~rental~~Board ~~for~~of Directors of the Company approved the issuance of stock options to an independent director to purchase up to 30,000 shares of the Company’s ~~office~~common ~~space~~stock. ~~and~~This ~~warehouse. As~~Option ofshall ~~March~~vest 31as follows: (a) 10,000 ~~2010~~stock options to vest on October 6, 2011; (b) 10,000 stock options to vest on October 6, 2012, contingent upon the ~~commitments~~renewal ~~related~~of the Director Agreement from October 6, 2011 to October 6, 2012; and (c) 10,000 stock options to vest on October 6, 2013, contingent upon the ~~above~~renewal ~~rental~~of ~~are~~the asDirector ~~follows:~~Agreement from October 6, 2012 to October 6, 2013.

	RMB		US$ Equivalent
			(Unaudited)
2010		635,155		93,051
2011		545,158		79,866
2012		446,751		65,449
2013		446,751		65,449
2014		297,834		43,633
Thereafter		-		-
	￥ 2,371,649		$	347,450

Note 13. LITIGATION

Index

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

~~This~~The ~~quarterly~~following ~~report~~discussion oncontains ~~Form 10~~forward-Qlooking ~~and~~statements ~~other~~within ~~reports filed by~~ the ~~Company~~meaning ~~from~~of ~~time~~Section to27A ~~time~~of ~~with~~ the ~~United States~~ Securities ~~and~~Act ~~Exchange~~of ~~Commission~~1933, ~~(the~~as ~~“SEC”)~~amended, ~~contain~~ or ~~may~~the ~~contain~~Securities ~~forward-looking~~Act, ~~statements~~and ~~(collectively~~Section ~~the~~21E ~~“Filings”)~~of ~~and~~the ~~information~~Securities ~~that~~Exchange ~~are~~Act ~~based~~of ~~upon~~1934, ~~beliefs~~as ofamended, ~~and~~or ~~information~~the ~~currently~~Exchange ~~available to~~Act, ~~the~~relating ~~Company’s~~to ~~management~~future asevents ~~well~~or asour ~~estimates~~future ~~and assumptions made by Company’s management~~performance. ~~Readers~~Actual ~~are~~results ~~cautioned~~may ~~not~~materially todiffer ~~place~~from ~~undue~~those ~~reliance~~projected onin ~~these~~the forward-looking statements, ~~which~~as ~~are~~a ~~only~~result ~~predictions~~of ~~and~~certain ~~speak~~risks ~~only~~and asuncertainties ofset ~~the~~forth ~~date~~in ~~hereof.~~this ~~When~~report ~~used~~and in ~~the~~our ~~filings,~~Annual Report on Form 10-K for the ~~words~~fiscal ~~“anticipate”,~~year ~~“believe”,~~ended ~~“estimate”,~~June ~~“expect”~~30, ~~“future”~~2010, ~~“intend”~~including, ~~“plan”~~without limitation, or the ~~negative~~risks ~~of these terms~~ and ~~similar~~uncertainties ~~expressions~~outlined asunder ~~they~~the ~~relate~~headings to“Risk ~~the~~Factors” ~~Company~~and or“Special ~~the~~Note ~~Company’s~~Regarding ~~management~~Forward-Looking ~~identify~~Statements” ~~forward-looking~~contained ~~statements~~therein. ~~Such~~Although ~~statements~~management ~~reflect~~believes that the ~~current~~assumptions ~~view~~made ofand ~~the~~expectations ~~Company~~reflected ~~with~~in ~~respect~~the toforward-looking ~~future~~statements ~~events and~~ are ~~subject to risks~~reasonable, ~~uncertainties,~~there ~~assumptions,~~is ~~and~~no ~~other~~assurance ~~factors,~~that ~~including~~ the ~~risks~~underlying ~~contained~~assumptions will, in ~~the~~fact, ~~“Risk~~prove ~~Factors”~~to ~~section~~be ofcorrect ~~the~~or ~~Company’s~~that ~~Annual~~actual ~~Report~~results onwill ~~Form~~not ~~10-K~~be ~~for~~different ~~the~~from ~~fiscal~~expectations ~~year~~expressed ~~ended~~in ~~December~~this ~~31,~~report. ~~2009~~Our ~~filed~~expectations ~~with~~are ~~the~~as ~~SEC,~~of ~~and~~ the ~~Company’s~~date ~~current~~this report onis ~~Form 8-K~~ filed, ~~with~~and ~~the~~we ~~SEC~~do onnot ~~March~~intend ~~31,~~to ~~2010,~~update ~~relating~~any toof the ~~Company’s~~forward-looking ~~industry,~~statements after the ~~Company’s~~filing ~~operations~~date ~~and~~to ~~results~~confirm ofthese ~~operations,~~statements ~~and~~to ~~any~~actual ~~businesses~~results, ~~that~~unless ~~the~~required ~~Company~~by ~~may acquire~~law. ~~Should~~The ~~one~~discussion orbelow ~~more~~should ofbe ~~these~~read ~~risks~~in orconjunction ~~uncertainties~~with ~~materialize, or should~~ the ~~underlying~~financial ~~assumptions~~statements ~~prove~~and ~~incorrect,~~related ~~actual~~notes ~~results~~appearing ~~may~~elsewhere ~~differ~~in ~~significantly~~this ~~from those anticipated, believed, estimated, expected, intended, or planned~~report.

~~Although~~Unless the ~~Company~~context ~~believes~~otherwise ~~that~~requires, the ~~expectations~~terms ~~reflected in the forward-looking statements are reasonable~~“we,” the “Company ~~cannot guarantee future results~~,” ~~levels of activity~~“us,” ~~performance,~~ or ~~achievements.~~“Dongsheng” ~~Except~~refer asto ~~required~~Dongsheng byPharmaceutical ~~applicable~~International ~~law~~Co., ~~including~~Ltd. Unless ~~the~~otherwise ~~securities laws of the United States~~indicated, ~~the~~all ~~Company~~amounts ~~does~~herein ~~not~~are ~~intend~~expressed toin ~~update~~US ~~any of the forward-looking statements to conform these statements to actual results~~Dollars.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report and in conjunction with Form 8-K filed with the SEC on March 31, 2010. Unless the context otherwise requires, the terms “we,” the “Company,” “us,” or “Dongsheng” refer to Dongsheng Pharmaceutical International Co., Ltd.

Unless otherwise indicated, all amounts herein are expressed in US Dollars.

Company Overview

~~The~~Dongsheng ~~Company~~Pharmaceutical ~~was~~International ~~incorporated~~Co., inLtd. ~~the~~is ~~state~~an ofestablished ~~Delaware~~national asprimary ofpharmaceutical ~~March~~wholesaler ~~25,~~in ~~2008.~~the OnPeople’s ~~March~~Republic ~~25,~~of ~~2010,~~China ~~the~~(PRC ~~Company~~or ~~entered~~China), ~~into~~which aspecializes ~~share~~in ~~exchange~~the ~~agreement~~wholesale and ~~acquired~~distribution ~~all~~ of ~~the~~high ~~outstanding~~quality, ~~capital~~high ~~stock~~margin ofand ~~Dynamic~~high ~~Bhorizon~~demand ~~Limited~~drugs, ~~(“DBL”),~~mainly ato ~~company~~secondary ~~incorporated~~and inthird ~~the~~tier ~~Cayman~~regional ~~Islands~~drug onwholesalers ~~April~~in ~~8, 2009~~China. ~~Pursuant~~Our toobjective ~~the~~is ~~Exchange~~to ~~Agreement,~~source ~~DBL~~the ~~became~~highest aquality ~~wholly-owned~~drug ~~subsidiary~~products ofto the ~~Company~~medical community. Since ~~DBL~~Mr. ~~has~~Xiaodong ~~not~~Zhu ~~carried~~purchased onour ~~any~~core ~~substantive~~operational ~~operations of its own. Instead~~subsidiary, ~~the Company owns 100% of~~ Sichuan Xintai Pharmaceutical Co., Ltd. (“Xintai”), ~~a company incorporated~~ in ~~Chengdu~~July ~~City~~2006, ~~Sichuan~~our ~~Province,~~business ~~People’s~~has ~~Republic~~been ofgrowing ~~China in November 1999. Xintai is primarily engaged in pharmaceutical technology promotion~~steadily, ~~trading~~measured ~~and~~by ~~warehousing~~annual ofsales ~~traditional Chinese medicine and bio-chemistry products~~revenue.

InOur ~~connection~~core ~~with~~operational ~~the~~subsidiary ~~acquisition~~is Xintai, ~~the~~which ~~Company~~was ~~issued~~incorporated ain ~~total of 15~~1999,~~830,000~~ ~~shares~~as ofa ~~common~~small ~~stock~~pharmaceutical tosales ~~the~~company ~~DBL~~in ~~Shareholders~~Chengdu City, ~~their~~Sichuan ~~designees~~Providence, orPRC. ~~assigns~~On inJuly ~~exchange~~15, ~~for~~2006, ~~all~~Mr. ofZhu, ~~the~~an ~~capital~~experienced ~~stock~~drug ofwholesaler, ~~DBL~~and ~~(the~~his ~~“Share~~sister, ~~Exchange”).~~Zhu ~~Upon~~Xiaomei, ~~the~~acquired ~~completion~~100% of ~~the~~Xintai ~~Share~~for ~~Exchange~~approximately $260,000. ~~the~~Under ~~sharehtockholders~~Mr. ofZhu’s ~~DBL own~~leadership, inXintai ~~aggregate,~~soon ~~93.12%~~became ofa ~~the~~well-known ~~issued~~licensed ~~and~~pharmaceutical ~~outstanding~~wholesale ~~capital~~company, ~~stock~~specializing in the sales of prescription and over-the-counter ~~Company~~medicines.

AsOn aJanuary ~~further~~11, ~~condition~~2010, of the ~~Share~~Sichuan ~~Exchange,~~Provincial ~~Patrick~~Government ~~Day~~approved ~~and~~Dynamic ~~Richard~~Bhorizon M.Limited ~~Day~~(“DBL”), ~~Jr.~~a ~~resigned~~company asincorporated in the ~~officers~~Cayman ~~and~~Islands ~~directors~~on ofApril ~~the~~8, ~~Company.~~2009, Mrto acquire 100% of Xintai. ~~Xiaodong~~On ~~Zhu~~January 21, ~~Mr. Xicai~~2010, Suthe ~~and~~Sichuan ~~Mr.~~Administration Difor WuIndustry ~~were~~and ~~appointed~~Commerce asissued ~~the~~a new ~~officers~~business oflicense to Xintai. With the ~~Company~~new license, ~~and~~Xintai ~~Mr.~~has ~~Xiaodong~~been ~~Zhu~~transformed ~~was~~from ~~appointed~~a asdomestic ~~the~~Chinese ~~new~~company ~~director~~to ofa ~~the~~wholly ~~Company~~foreign-owned ~~effectively immediately~~enterprise.

~~The~~Dongsheng ~~acquisition~~Pharmaceutical International Co., Ltd. was ~~accounted~~incorporated ~~for~~in asthe astate ~~reverse~~of ~~merger~~Delaware on March 25, 2008, originally under the ~~purchase~~name ~~method~~“Indestructible ofI.” ~~accounting~~On ~~since~~March ~~there~~25, ~~was~~2010, Dongsheng entered into a ~~change~~share exchange agreement and acquired all of ~~control~~the outstanding capital stock of DBL. Pursuant ~~Accordingly~~to the share exchange agreement, DBL ~~and~~became ~~its~~a wholly-owned subsidiary, ~~Xintai,~~of ~~will~~Dongsheng beand ~~treated~~Mr. Zhu was appointed as the ~~continuing~~Company’s ~~entity~~Chief ~~for~~Executive ~~accounting purposes~~Officer.

OnIn ~~April~~connection 5,with ~~2010~~the acquisition of DBL, wethe ~~filed~~Company anissued ~~amendment~~a tototal ~~articles~~of 15,830,000 shares of ~~incorporation~~common stock to ~~change~~the ~~our~~shareholders ~~name~~of ~~from~~DBL, ~~“Indestructible~~their Idesignees or assigns, ~~Inc.”~~in toexchange ~~“Dongsheng~~for ~~Pharmaceutical~~all ~~International~~of Cothe capital stock of DBL. Upon the completion of the share exchange, ~~Ltd~~the stockholders of DBL owned, in aggregate, approximately 93.”12% toof ~~better~~the ~~reflect~~issued and outstanding capital stock of the Company~~’s business~~.

~~Results~~The ofbusiness ~~Operations~~combination was accounted for as a reverse merger under the ~~Three~~purchase ~~Months~~method ~~Ended~~of ~~March~~accounting 31since there was a change of control. Accordingly, ~~2010~~DBL and ~~2009~~its subsidiary, Xintai, will be treated as the continuing entity for accounting purposes.

		Three Months Ended March 31, ,			$	%
		2010		2009	Change	Change
Revenues	$	2,371,294	$	4,733,695	(2,362,401)		(49.91)	%
Cost of Sales	$	(1,511,399)	$	(3,193,562)	(1,682,163)		(52.67)	%
Gross Profit	$	859,895	$	1,540,133	(680,239)		(44.17)	%
Operating Expenses	$	142,596	$	750,272	(607,676)		(80.99)	%
Operating Income	$	717,299	$	789,861	(72,562)		(9.19)	%
Other income (expenses)	$	1,088,232	$	(3,903)	1,092,135		(27984)	%
Income Before Income Tax	$	1,805,531	$	785,958	1,019,573		129.72	%
Income Tax Provision	$	451,382	$	196,489	254,893		129.72	%
Net Income	$	1,354,149	$	589,469	764,680		129.72	%

On April 5, 2010, Indestructible I, Inc. changed its name to Dongsheng Pharmaceutical International Co., Ltd. to better reflect the Company’s business.

Index

Results of Operations for the Three Months Ended September 30, 2010 and 2009

Revenues:

Revenues for the three months ended ~~March~~September 3130, 2010 decreased by approximately $20.3695 million, or 4919.9145%, to $23.3794 million as compared to $4.7389 million for the same period of the prior year. This decrease was due to a decrease in sales ~~was~~of ~~due~~our toganglioside product. During the ~~transportation~~quarter ~~interruption~~we commenced an ongoing effort to reorganize our sales and marketing teams from a product basis to a geographical basis, which disrupted our sales efforts during the ~~heavy~~quarter, ~~snow~~but ~~storms~~which inwe ~~Northern~~believe ~~part~~will lead to increased product revenues once it is fully implemented. We also believe that sales of ~~China~~our inmain product, ganglioside, were lower during the quarter ~~one~~as ~~this~~a ~~year,~~result of uncertainty about whether it will be included in the insurance catalog for certain of the provinces in which ~~had~~it ~~negative~~is ~~impact~~sold. onWe ~~inventory~~expect ~~build-up~~that ~~and~~any ~~sales~~uncertainties regarding the inclusion of ganglioside in the insurance catalogs for these provinces will be resolved in early 2011 when those provincial catalogs are finalized.

Gross Profit:

We achieved gross profits of approximately $01.8611 million for the three months ended ~~March~~September 3130, 2010, compared to approximately $1.5436 million for the same period of the ~~previous~~prior year, representing aan 4418.17 16% ~~period to period~~ decrease. Our overall gross profit margin as a percentage of revenue ~~grew by 3.72% to 36.26%~~ for the ~~three~~periods ~~months~~ ended ~~March~~September 3130, 2010 ~~compared~~and to2009 ~~32.54%~~remained ~~of the same period in 2009~~consistent.

Operating Expenses:

Our operating expenses, consisting of selling, general and administrative expenses, ~~decreased~~increased by approximately $~~607~~0.21 ~~thousand~~million, to $~~142~~0.52 ~~thousand~~million, for the three months ended ~~March~~September 3130, 2010 from $~~750~~0.31 ~~thousand~~million for the same period of the ~~previous~~prior year. This ~~80.99~~increase ~~% decrease~~ is ~~mainly~~primarily ~~attributable~~due to ~~the~~an ~~recovery~~increase of approximately $1183,~~030,526~~000 ~~bad debts recognized~~ in ~~prior~~general ~~years,~~and asadministrative aexpenses ~~result~~attributable ofto the ~~efforts~~expansion of ~~clearing~~our ~~receivables~~business inthat ~~quarter~~led ~~one~~to ~~this~~higher ~~year,~~headcounts ~~partially~~and ~~offset~~additional bycosts ~~increase in selling~~ and ~~distribution~~ expenses, ~~travelling~~associated ~~expenses~~with ~~and~~being ~~other~~a ~~expenses~~public ~~relating to operation~~company.

Income Tax Provision:

Our provisions for income taxes for the three months ended ~~March~~September 3130, 2010 and 2009 were $~~451~~146,~~382~~016 and $~~196~~261,~~489~~549, respectively, ana ~~increase~~decrease of $~~254~~115,~~893~~533 or ~~129~~44.72 17% from ~~period~~the tosame period of the prior year. The ~~increase~~decrease in the income tax provision was in proportion to our ~~increase~~decrease in ~~pre-tax~~operating income.

~~Results~~Net ~~of Operations for the Nine Months Ended March 31, 2010 and 2009~~Income:

		Nine Months Ended March 31,			$	%
		2010		2009	Change	Change
Revenues	$	12,024,838	$	12,290,922	(266,084)		(2.16)	%
Cost of Sales	$	(8,547,708)	$	(9,070,871)	(523,163)		(5.77)	%
Gross Profit	$	3,477,130	$	3,220,051	257,079		7.98	%
Operating Expenses	$	688,102	$	1,105,330	(417,228)		(37.75)	%
Operating Income	$	2,789,028	$	2,114,721	674,307		31.89	%
Other income (expenses)	$	1,391,663	$	(5,995)	1,397,658		(23314)	%
Income Before Income Tax	$	4,180,691	$	2,108,726	2,071,965		98.26	%
Income Tax Provision	$	1,049,349	$	527,181	522,168		99.05	%
Net Income	$	3,131,342	$	1,581,545	1,549,797		97.99	%

Net income for the three months ended September 30, 2010 decreased by approximately $334,000 to approximately $438,000 as compared to approximately $782,000 for the same period of the prior year, representing a 44.03% decrease over the same period of the prior year. This decrease was mainly attributable to our decrease in revenues and increase in operating expenses.

Revenues:

Revenues for the nine months ended March 31, 2010 decreased by approximately $266 thousand or 2.16% to $12.02 million as compared to $12.29 million for the nine months ended March 31, 2009. Though sales have been driven up by expansion of our customers and new products in the first 6 months, the transportation interruption due to the heavy snow storms in Northern part of China in quarter one this year brought negative impact on inventory build-up, leading to the overall sales decrease for the nine months ended March 31, 2010 as compared to the same period of the prior year.

Gross Profit:

We achieved gross profits of $3.48 million for the nine months ended March 31, 2010, compared to $3.22 million for the same period of the previous year, representing a 7.98 % period to period increase. Our overall gross profit margin as a percentage of revenue grew by 2.72% to 28.9% for the nine months ended March 31, 2010 compared to 26.2% of the same period prior year.

Operating Expenses:

Our operating expenses, consisting of selling, general and administrative expenses, decreased by approximately $417 thousand, to $688 thousand for the nine months ended March 31, 2010 from $1,105,330 for the same period of the previous year. This 37.75% decrease is mainly is mainly attributable to the recovery of $1,341,956 bad debts recognized in prior year, as a result of the efforts of clearing receivables in this year, partially offset by increase in selling and distribution expenses, travelling expenses and other expenses relating to operation.

Income Tax Provision:

Our provisions for income taxes for the nine months ended March 31, 2010 and 2009 were $1,049,349 and $527,181 respectively, an increase of $522,168 or 99.05 % from period to period. The increase in the income tax provision was in proportion to our increase in pre-tax income.

Liquidity and Capital Resources

~~The~~As ~~following~~of ~~table~~September ~~summarizes~~30, ~~the~~2010, we had approximately $0.87 million in cash, ~~flows~~a ~~for~~decrease of $3.52 million, or 80.16%, from $4.4 million at June 30, 2010. Although the ~~nine~~level ~~months~~of ~~ended~~our ~~March~~cash 31and cash equivalents as of September 30, 2010 were low compared to their level at June 30, 2010, most of our cash expenditures during the period were made in connection with significant advances to vendors, as well as purchases of inventory, as further described under “Liquidity and ~~2009~~Capital Resources – Operations” below. We believe that these vendor advances and inventory purchases will help stabilize our product costs, which in turn will improve our operating results.

	Nine Months Ended March 31,
	2010			2000
Cash provided by (used in):
Operating Activities	$	(270,515	)	$	1,159,018
Investing Activities	$	(128,627	)	$	(1,276,156	)
Financing Activities	$	(125,059	)	$	10,702

The following table summarizes our cash flows for each of the periods indicated:

We have historically funded our operation primarily through operating activities and certain loans from related parties. Over the next twelve months, we intend to pursue our primary objective of increasing market share in China. We are also evaluating acquisition and consolidation opportunities in China’s fragmented pharmaceutical industry. We believe that we have sufficient funds to operate our existing business for the next twelve months. However, in addition to funds available from our operating activities and loans from related parties, we may need external sources of capital for our expansion. There can be no assurance that we will be able to obtain such additional financing at acceptable terms to us, or at all.

	Three Months Ended September 30,
	2010		2009
Cash provided by (used in):
Operating Activities	$	(3,517,980)	$	(601,892)
Investing Activities	$	(2,039)	$	(197,029)
Financing Activities	$	(21,406)	$	202,087

Index

Over the next twelve months, we intend to pursue our primary objective of increasing market share in China. We are also evaluating acquisition and consolidation opportunities in China’s fragmented pharmaceutical industry. We believe that projected cash flows from operations and cash on hand will provide the necessary capital to fund our business operations for the next twelve months. However, in addition to such funds, we may need additional sources of capital to expand our operations. Any such financing could come in the form of debt or the issuance of our common stock or common stock equivalents in a private placement or public offering. If such financing involves the issuance of common stock or securities exercisable for or convertible into common stock, such financing may dilute or otherwise impair the ownership interests of our current stockholders. There are no assurances that any financing will be available on terms acceptable to us, if at all. If we require additional financing in the future and are unable to obtain such financing, we may not be able to fully implement our business plan.

Operations

Cash used in operating activities totaled $~~270~~3,~~515~~517,980 for the ~~nine~~three months ended ~~March~~September 3130, 2010, as compared to $1601,~~159,018~~892 ~~provided~~for by the same period of the ~~previous~~prior year. The ~~decrease~~increase of $2,916,088 in our cash ~~provided~~used byin operations was primarily due to advances made to vendors in the ~~recovery~~amount of approximately $13.6 million,~~341,956~~ ~~bad~~as ~~debts~~well as purchases of approximately $151,000 in inventory. We made these advances and purchased this ~~year~~inventory in an effort to lock in current favorable pricing for these products, ~~partially~~which ~~offset~~we bybelieve ~~the~~will ~~increase~~have ofa ~~advance~~favorable toimpact ~~vendors~~on our operating results in the future.

Investments

~~For~~Cash ~~the~~used ~~nine~~in ~~months~~investing ~~ended~~activities ~~March~~was 31$2,039 ~~2010,~~for wethe ~~invested~~three ~~$33,799~~months inended ~~fixed~~September ~~assets~~30, 2010, as compared to $49197,~~811~~029 infor the same period of the prior year. AtThis ~~the~~change ~~same~~was ~~time,~~due weto ~~lent~~our investment of $942,~~828~~039 ~~loans~~in toproperty ~~our~~and ~~related~~equipment ~~party~~during ~~for~~ the ~~nine~~period ~~months~~ ended ~~March~~September 3130, 2010, as compared to ~~$1,226,345~~ loans to related parties in the amount of $197,029 during the same period of ~~2009~~the prior year.

Financing

~~We made~~Cash used in financing activities was $8621,~~226~~406 ~~payments~~ for ~~loans~~the ~~from~~three ~~outside~~months ~~parties~~ended September 30, ~~and~~2010, ~~paid~~as ~~off~~compared to cash provided by financing activities of $38202,~~833~~087 ~~loans~~for tothe ~~related~~same ~~parties~~period ~~for~~of the ~~nine~~prior year. During the three months ended ~~March~~September 3130, 2010 aswe ~~compared~~repaid toour shareholders in the amount of $21,406, while during the same period of the prior year we received loan proceeds from shareholders in the amount of $10111,~~702~~152 and from related parties ~~loans~~ in the ~~same~~amount ~~period~~ of ~~2009~~$90,935.

Off-Balance Sheet Arrangements

~~We do not have off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities~~None.”

Critical Accounting Policies

~~While~~We believe the following are our ~~significant~~most critical accounting policies ~~are~~that ~~more~~include ~~fully~~significant ~~described~~judgments and estimates used in ~~Note~~the 2preparation toof our ~~financial~~unaudited ~~statements,~~condensed weconsolidated ~~believe~~financial ~~that~~statements. ~~the~~We ~~following~~consider an accounting ~~policies~~policy ~~are~~to ~~the~~be ~~most~~ critical toif ~~aid~~the ~~you~~changes in ~~fully~~these ~~understanding~~assumptions ~~and~~could ~~evaluating~~have ~~this~~a ~~“Management’s~~material ~~Discussion~~impact ~~and~~on ~~Analysis~~our ofconsolidated ~~Financial~~financial ~~Condition~~condition ~~and~~or ~~Results~~results of ~~Operations~~operations.”

Principles of consolidation and uses of estimates

~~The~~Our unaudited condensed consolidated financial statements include the accounts of ~~the~~our ~~Company~~subsidiaries. Certain amounts are based on management’s best estimates and ~~its~~judgments. ~~wholly-owned~~Estimates ~~subsidiaries~~are used in determining such items as depreciable lives of property and equity, ~~DBL~~recoverability of accounts receivable and ~~Xintai.~~inventories, ~~All~~realization ~~significant~~of ~~inter~~advances to vendors and distribution deposits, share-~~company~~based ~~balances~~compensation assumptions, and ~~transactions~~taxes ~~have~~on ~~been~~income. ~~eliminated~~Because of the uncertainty inherent in ~~consolidation~~such estimates, actual results may differ from these estimates.

~~Use~~Fair ~~of estimates~~value

~~The~~As ~~preparation~~ of ~~financial~~September ~~statements~~30, in2010, ~~conformity~~the ~~with~~carrying ~~U.S.~~amount ~~GAAP~~of ~~requires~~cash ~~management to make estimates~~ and ~~assumptions~~cash ~~that~~equivalents, ~~affect~~accounts ~~the~~receivable, ~~amounts~~other ~~reported~~receivables, ininventories, ~~the~~advances ~~financial~~to ~~statements~~vendors, ~~and~~VAT ~~accompanying~~tax ~~notes~~receivables, and ~~disclosure~~current ofliabilities ~~contingent~~are ~~liabilities~~approximate atfair ~~the~~value ~~date~~due ofto the ~~financial~~short ~~statements~~term nature. Distribution ~~Estimates~~deposit ~~are~~represents ~~used~~deposit ~~for,~~with ~~but~~one ~~not limited to, the selection~~ of ~~the~~our ~~useful~~major ~~lives~~vendors ~~of property~~ and ~~equipment,~~is ~~provision~~fully ~~necessary~~refundable ~~for~~after three ~~contingent~~years. ~~liabilities,~~Although ~~fair~~the ~~values,~~amount ~~revenue~~is ~~recognition,~~impacted ~~taxes,~~by ~~budgeted~~foreign ~~costs~~currency ~~and~~translation ~~other~~adjustments ~~similar~~at ~~charges.~~each ~~Management~~reporting ~~believes~~period, ~~that~~we believe the ~~estimates~~carry ~~utilized~~amount inof ~~preparing~~distribution ~~its~~deposit ~~financial~~approximates ~~statements~~fair ~~are~~value ~~reasonable~~as ~~and~~it ~~prudent.~~is ~~Actual~~not ~~results~~exposed ~~could~~to ~~differ~~other ~~from~~significant ~~these~~price ~~estimates~~or credit risk.

~~Accounts receivable~~20

The Company does periodical reviews as to whether the carrying values of accounts have become impaired. The assets are considered to be impaired if the collectability of the balances become doubtful, accordingly, the management estimates the valuation allowance for anticipated uncollectible receivable balances. When facts subsequently become available to indicate that the allowance provided requires an adjustment, then the adjustment will be classified as a change in estimate.

Inventories

Property and equipment

Depreciation is computed using the straight-line method over the estimated useful lives of the assets, less any estimated residual value. Estimated useful lives of the assets are as follows:

Office equipments 5 years

Vehicle 10 years

Any gain or loss on disposal or retirement of a fixed asset is recognized in the profit and loss account and is the difference between the net sales proceeds and the carrying amount of the relevant asset. When property and equipment are retired or otherwise disposed of, the assets and accumulated depreciation are removed from the accounts and the resulting profit or loss is reflected in income.

Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized.

Impairment of long-lived assets

Advance from customers

Income taxes

Revenue recognition

~~The~~We ~~Company~~primarily ~~recognizes~~sell ~~revenue~~our ~~when~~products ~~the~~directly ~~following~~to ~~fundamental~~secondary ~~criteria~~and ~~are~~third ~~met:~~tier ~~(i)~~regional ~~persuasive~~drug ~~evidence~~wholesalers ofin anChina. ~~arrangement~~Historically ~~exists,~~we ~~(ii)~~receive ~~delivery~~advance ~~has~~payments ~~occurred~~from orcustomers ~~services~~prior ~~have been rendered, (iii) the price~~ to ~~the customer is fixed~~ or ~~determinable~~upon ~~and~~delivery ~~(iv) collection~~ of ~~the~~goods. ~~resulting~~We ~~receivable~~recognize isrevenue ~~reasonably~~at ~~assured. Revenue~~the istime ~~not~~of ~~recognized~~delivery ~~until~~and when title and risk of loss ispasses ~~transferred~~ to the customer,. ~~which~~We ~~occurs~~accept ~~upon~~return ~~delivery~~ of goods, ~~and objective evidence exists that customer acceptance provisions have been met. Deposits or advance payments~~ from customers ~~prior~~due to ~~delivery~~product ~~of goods and passage of title of goods are recorded as advance from customers~~defects.

~~Cost~~Stock-based ~~of sales~~compensation

~~Costs~~We recognize compensation expense for equity grants ratably over the requisite service period based on the grant date fair value. The fair value of ~~sales~~options ~~include~~is ~~costs~~estimated on the date of grant using the ~~pharmaceuticals~~Black ~~sold~~Sholes ~~and~~Model. ~~used~~Determining the fair value of stock options at the grant date requires judgment, ~~inbound~~including ~~freight~~estimates ~~costs~~for the average risk-free interest rate, ~~cost~~dividend ofyield, ~~direct~~volatility, ~~labor~~annual forfeiture rate, and ~~overhead~~exercise behavior. ~~Write-down~~These ofassumptions ~~inventory~~may todiffer ~~lower~~significantly ofbetween ~~cost~~grant ordates ~~market~~because isof ~~also~~changes ~~recorded~~ in ~~cost~~the actual results of ~~sales~~these inputs that occur over time.

22Income taxes

~~Selling,~~Our ~~general~~company was incorporated in the United States and ~~administrative~~is ~~costs~~governed by the income tax laws of the United States. We account for income taxes using an asset and liability approach upon the likelihood of realization of tax benefits in future years. Our operating subsidiary conducts all of its business in the PRC and therefore it is subject to the income tax law of PRC governed private-run enterprises. Historically we do not generate any taxable income outside of the PRC and management does not expect to repatriate any income generated in the PRC to the United States.

Comprehensive income

Statement of Cash Flows

Fair Value of Financial Instruments

Earnings Per Share

The Company computes earnings per share (“EPS’) in accordance with SFAS 128, “Earnings Per Share”, which was subsequently codified within ASC 260, “Earning Per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Foreign currency translation

The Company and DBL maintains their accounting records in the United States Dollars (“US$”), whereas Xintai maintain its accounting records in the currency of Renminbi (“RMB”), the currency of the PRC. For financial reporting purpose, RMB have been translated into UD$ as the reporting currency in accordance with Statement of Financial Accounting Standard (“SFAS”) No. 52, “Foreign Currency Translation”, which was subsequently codified within ASC 830, “Foreign Currency Matters”. The financial information is translated into U.S. dollars at period-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive loss in stockholders’ equity.

Concentration of credit risk

Shipping costs

Shipping costs are expensed as incurred. Shipping costs were included in selling expenses and amounted to $1,232 and $3,250 for the three months and $3,255 and $7,586 for the nine months ended March 31, 2010 and 2009, respectively.

Advertising

Advertising is expensed as incurred. Advertising expenses were included in selling expenses and amounted to $1,175 and $-0- for the three months and $43,794 and $16,993 for the nine months ended March 31, 2010 and 2009, respectively.

Risks and uncertainties

Recent accounting pronouncements

In January 2010, FASB issued ASU No. 2010-06 – Improving Disclosures about Fair Value Measurements. This update provides amendments to Subtopic 820-10 that requires new disclosure as follows: 1) Transfers in and out of Levels 1 and 2. A reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. 2) Activity in Level 3 fair value measurements. In the reconciliation for fair value measurements using significant unobservable inputs (Level 3), a reporting entity should present separately information about purchases, sales, issuances, and settlements (that is, on a gross basis rather than as one net number). This update provides amendments to Subtopic 820-10 that clarifies existing disclosures as follows: 1) Level of disaggregation. A reporting entity should provide fair value measurement disclosures for each class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. A reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities. 2) Disclosures about inputs and valuation techniques. A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. Those disclosures are required for fair value measurements that fall in either Level 2 or Level 3. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company has determined the adoption of this ASU does not have a material impact on its financial statements.

In December, 2009, FASB issued ASU No. 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. This Accounting Standards Update amends the FASB Accounting Standards Codification for the issuance of FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). The amendments in this Accounting Standards Update replace the quantitative-based risks and rewards calculation for determining which reporting entity, if any, has a controlling financial interest in a variable interest entity with an approach focused on identifying which reporting entity has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. An approach that is expected to be primarily qualitative will be more effective for identifying which reporting entity has a controlling financial interest in a variable interest entity. The amendments in this Update also require additional disclosures about a reporting entity’s involvement in variable interest entities, which will enhance the information provided to users of financial statements. The Company has determined the adoption of this ASU does not have a material impact on its financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

WeNot ~~do not hold any derivative instruments and do not engage in any hedging activities~~applicable.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. This is particularly true for smaller public companies that have less experience designing and implementing policies that are intended to enhance compliance with the reporting obligations of the Exchange Act. We completed a reverse acquisition transaction on March 25, 2010. Management is currently in the process of finalizing its procedures for internal controls over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

Our Chief Executive Officer and Chief Financial Officer are responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. Furthermore, smaller reporting companies face additional limitations. Smaller reporting companies employ fewer individuals and find it difficult to properly segregate duties. Often, one or two individuals control every aspect of the Company's operation and are in a position to override any system of internal control. Additionally, smaller reporting companies tend to utilize general accounting software packages that lack a rigorous set of software controls.

(b) Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

2521

Index

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

WeFrom ~~are~~time ~~currently~~to ~~not~~time, ~~involved~~we inmay ~~any~~become ~~litigation~~involved ~~that~~in wevarious ~~believe~~lawsuits ~~could~~and ~~have~~legal aproceedings, ~~material~~which ~~adverse~~arise, ~~effect~~in onthe ~~our~~ordinary ~~financial~~course ~~condition or results~~ of ~~operations~~business. ~~There~~However, litigation is nosubject ~~action,~~to ~~suit,~~inherent ~~proceeding~~uncertainties, ~~inquiry~~and oran ~~investigation~~adverse ~~before~~result orin ~~by any court~~these, ~~public~~or ~~board,~~other ~~government agency~~matters, ~~self-regulatory~~may ~~organization~~arise orfrom ~~body~~time ~~pending or,~~ to ~~the~~time ~~knowledge~~that ofmay ~~the~~harm ~~executive~~our ~~officers~~business. ofWe ~~our~~are ~~company~~currently ornot ~~any~~aware of ~~our~~any ~~subsidiaries,~~such ~~threatened~~legal ~~against~~proceedings or ~~affecting~~claims ~~our~~that ~~company,~~we ~~our~~believe ~~common~~will ~~stock,~~have ~~any~~a ofmaterial ~~our subsidiaries~~adverse oraffect ofon our ~~companies~~business, orfinancial ~~our~~condition ~~subsidiaries’ officers~~ or ~~directors~~operating inresults, ~~their~~other ~~capacities~~than as ~~such,~~set forth in ~~which~~the anparagraph ~~adverse~~immediately ~~decision could have a material adverse effect~~below.

~~Item~~In 1AJanuary 2010, Chongqing Yidong Pharmaceuticals Co., ~~Risk~~Ltd. ~~Factors~~(“Yidong”) filed a lawsuit against us at the People’s Court of Yuzhong District, Chongqing City, China. Yidong claims compensation in an amount of RMB1,520,040 (equivalent to US$222,648) along with court fees for its alleged losses. Although we believe the plaintiff’s allegation is based on a falsified sales contract, a judgment order has not been issued and we cannot assure you that the judgment will be given in our favor. On July 27, 2010, the Judge issued a judicial authentication order on the signature on the contract that we had signed with Yidong. If the signature proves to be fraudulently added by Yidong, we will prevail. However there is a remote possibility that the judicial authentication of the signature fails, which may result in a judgment order for us to compensate Yidong. However, we believe this possibility is remote and therefore no accrual has been provided. As of September 15, 2010, the judge has not announced any results on judicial authentication or other judgment order related to this case.

There have been no material changes from the risk factors previously disclosed in the Company’s Form 8-K filed with the SEC on March 31, 2010.

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

Except as previously disclosed in the Company’s Form 8-K filed with the SEC on March 31, 2010, there were no unregistered sales of Equity Securities and Use of Proceeds during the period ended March 31, 2010.

Item 3. Defaults Upon Senior Securities.

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

Item 4. (Removed and Reserved).

Item 5. Other Information.

There is no other Information required to be disclosed under this Item which was not previously disclosed.

Item 6. Exhibits.

Exhibit No.		Description
31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *
31.2		Certification of ~~PrincipalFinancial~~Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *
32.1		Certification of Principal Executive Officer of the Company, 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 Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 **

* filed ~~herein~~herewith.

26** furnished herewith.

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Dongsheng Pharmaceutical International Co., Ltd.
Date: May 17, 2010	By:	/s/ Xiaodong Zhu
Date: November 22, 2010	By:	/s/ Xiaodong Zhu
		Xiaodong Zhu
		President, Chief Executive Officer and Chairman

Date: May 17, 2010	By:	/s/ Jianping Chen
Date: November 22, 2010	By:	/s/ Jianping Chen
		Jianping Chen
		Chief Financial Officer and Principal Accounting Officer

2723

Filing Compare · Dongsheng Pharmaceutical International Co., Ltd.