China Medicine Announces Solid First Quarter 20...( allowance for doubtful accounts of ...)

allowance for doubtful accounts of

$57,954 and $55,640 as of March 31,

2008 and December 31, 2007,

respectively 13,212,089 13,626,347

Notes receivables 1,682,184 -

Inventories 4,923,381 3,948,460

Advances to suppliers 6,908,467 5,983,277

Other current assets 166,236 81,221

Total current assets 32,069,418 29,407,079

EQUIPMENT, net 1,352,430 1,388,919

OTHER ASSETS

Deferred expenses 618,131 678,237

Intangible assets, net 1,214,460 1,166,003

Total other assets 1,832,591 1,844,240

Total assets $ 35,254,439 $ 32,640,238

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable, trade $48,664 $76,907

Other payables and accrued liabilities 21,497 70,343

Customer deposits 156,052 203,281

Taxes payable 342,019 468,184

Liquidated damages payable 44,003 44,003

Total liabilities 612,235 862,718

MINORITY INTEREST 866,385 893,337

SHAREHOLDERS' EQUITY

Preferred stock, $0.0001 par value;

10,000,000 shares authorized,

60,000 and 111,649 shares issued

and outstanding at March 31, 2008

and December 31 2007, respectively 6 11

Common stock, $0.0001 par value;

100,000,000 shares au
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