Aoxing Pharmaceutical (AOXG) 10-K 29 Sep 14 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Jun. 30, 2014	Sep. 29, 2014	Dec. 31, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'AOXING PHARMACEUTICAL COMPANY, INC.	'	'
Document Type	'10-K	'	'
Document Period End Date	30-Jun-14	'	'
Amendment Flag	'false	'	'
Entity Central Index Key	'0001060426	'	'
Current Fiscal Year End Date	'--06-30	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'FY	'	'
Entity Common Stock, Shares Outstanding	'	61,737,100	'
Entity Public Float	'	'	$5,349,154

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Jun. 30, 2013
CURRENT ASSETS:	'	'
Cash and cash equivalents	$2,329,660	$4,007,823
Accounts receivable, net of allowance for doubtful accounts of $1,562,109 and $663,983, respectively	3,890,550	2,842,703
Inventories, net	2,195,274	2,621,878
Prepaid expenses and other current assets	2,505,129	2,419,790
TOTAL CURRENT ASSETS	10,920,613	11,892,194
LONG-TERM ASSETS:	'	'
Property and equipment, net of accumulated depreciation	26,418,842	26,941,778
Other intangible assets, net	546,114	606,643
Investment in joint venture	189,185	292,265
TOTAL LONG-TERM ASSETS	27,154,141	27,840,686
TOTAL ASSETS	38,074,754	39,732,880
CURRENT LIABILITIES:	'	'
Short-term borrowings	11,398,464	3,312,757
Accounts payable	3,883,198	3,412,344
Loan payable - bank	3,247,966	8,467,729
Current portion of loan payable - related parties	1,084,248	2,101,998
Current portion of long-term bank loan	10,166,133	'
Accrued expenses and other current liabilities	4,434,790	4,408,676
TOTAL CURRENT LIABILITIES	34,214,799	21,703,504
LONG-TERM LIABILITIES:	'	'
Loan payable - related parties	6,146,803	1,561,013
Loan payable - others	1,354,810	1,403,591
Long-term bank loans	'	10,116,027
Deferred income	367,020	365,211
TOTAL LONG-TERM LIABILITIES	7,868,633	13,445,842
Stockholder's Equity	'	'
Common stock, par value $0.001, 100,000,000 shares authorized, 49,874,822 and 49,814,822 shares issued and outstanding on June 30, 2014 and June 30, 2013	49,875	49,815
Additional paid in capital	58,315,446	58,296,906
Accumulated deficit	-63,849,681	-55,633,998
Accumulated other comprehensive income	2,979,235	2,956,846
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY	-2,505,125	5,669,569
NONCONTROLLING INTEREST IN SUBSIDIARIES	-1,503,553	-1,086,035
TOTAL EQUITY	-4,008,678	4,583,534
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$38,074,754	$39,732,880

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Jun. 30, 2014	Jun. 30, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Allowance for doubtful accounts	$1,562,109	$663,983
Common stock par value	$0.00	$0.00
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	49,874,822	49,814,822
Common stock shares outstanding	49,874,822	49,814,822

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Revenue	'	'
SALES	$12,739,371	$10,829,839
COST OF SALES	6,925,697	4,562,096
GROSS PROFIT	5,813,674	6,267,743
OPERATING EXPENSES:	'	'
Research and development	569,699	1,480,217
General and administrative	3,613,657	3,303,824
Selling expenses	4,350,442	7,447,141
Depreciation and amortization	614,755	585,695
Impairment loss on intangible assets	'	616,947
Impairment loss on goodwill	'	7,055,364
TOTAL OPERATING EXPENSES	9,148,553	20,489,188
LOSS FROM OPERATIONS	-3,334,879	-14,221,445
OTHER INCOME (EXPENSE):	'	'
Interest expense, net of interest income	-5,194,786	-2,986,568
Equity in loss of joint venture, net	-104,715	-114,744
Subsidy income	'	32,139
TOTAL OTHER EXPENSE	-5,299,501	-3,069,173
LOSS BEFORE INCOME TAXES	-8,634,380	-17,290,618
Income taxes	'	'
NET LOSS	-8,634,380	-17,290,618
Net loss attributable to non-controlling interest in subsidiaries	-418,697	-486,388
NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY	-8,215,683	-16,804,230
OTHER COMPREHENSIVE INCOME :	'	'
Foreign currency translation adjustment	28,055	314,260
COMPREHENSIVE LOSS	-8,187,628	-16,489,970
Other comprehensive income attributable to non-controlling interest	1,403	15,713
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY	($8,189,031)	($16,505,683)
BASIC AND DILUTED LOSS PER COMMON SHARE	($0.16)	($0.34)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	49,856,247	49,749,779

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock	Preferred Stock	Additional Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total Shareholders' Equity of the Company	Non Controlling Interest	Total
Balance at Jun. 30, 2012	$49,615	'	$58,002,239	($38,829,768)	$2,658,299	$21,880,385	($615,360)	$21,265,025
Balance - Shares at Jun. 30, 2012	49,615,013	'	'	'	'	'	'	'
Common stock issued for services	200	'	294,667	'	'	294,867	'	294,867
Common stock issued for services - shares	199,809	'	'	'	'	'	'	'
Common stock options granted	'	'	'	'	'	'	'	'
Translation adjustments	'	'	'	'	298,547	298,547	15,713	314,260
NET LOSS	'	'	'	-16,804,230	'	-16,804,230	-486,388	-17,290,618
Balance at Jun. 30, 2013	49,815	'	58,296,906	-55,633,998	2,956,846	5,669,569	-1,086,035	4,583,534
Balance - Shares at Jun. 30, 2013	49,814,822	'	'	'	'	'	'	'
Common stock issued for services	60	'	18,540	'	'	18,600	'	18,600
Common stock issued for services - shares	60,000	'	'	'	'	'	'	'
Common stock options granted	'	'	'	'	'	'	'	'
Translation adjustments	'	'	'	'	22,389	22,389	1,179	23,568
NET LOSS	'	'	'	-8,215,683	'	-8,215,683	-418,697	-8,634,380
Balance at Jun. 30, 2014	$49,875	'	$58,315,446	($63,849,681)	$2,979,235	($2,505,125)	($1,503,553)	($4,008,678)
Balance - Shares at Jun. 30, 2014	49,874,822	'	'	'	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES:	'	'
NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY	($8,215,683)	($16,804,230)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	990,128	1,114,156
Impairment charge on goodwill	'	7,055,364
Impairment charge on intangible assets	'	616,947
Inventory markdown	'	3,979
Provision for doubtful accounts	896,441	75,401
Common stock issued for services	18,600	294,867
Equity in loss of joint venture, net	104,715	114,744
Net loss attributable to non-controlling interests	-418,697	-486,388
Change in accounts receivable	-1,932,061	-54,665
Change in inventories	440,379	-770,526
Change in prepaid expenses and other current assets	-73,425	-1,146,649
Change in accounts payable	454,767	584,457
Change in accrued expenses and other current liabilities	4,859	725,578
Change in deferred income	'	359,792
NET CASH USED IN OPERATING ACTIVITIES	-7,729,977	-8,317,173
INVESTING ACTIVITIES:	'	'
Acquisition of property and equipment	-268,922	-439,354
NET CASH USED IN INVESTING ACTIVITIES	-268,922	-439,354
FINANCING ACTIVITIES:	'	'
Proceeds from bank loans	3,247,966	10,348,012
Payment of bank loans	-8,537,332	-796,001
Short-term borrowings	8,083,766	'
Other borrowings, net of repayment	-37,606	-433,072
Loans from/(to) related party	3,556,288	-127,360
NET CASH PROVIDED BY FINANCING ACTIVITIES	6,313,082	8,991,579
EFFECT OF EXCHANGE RATE ON CASH	7,654	90,028
(DECREASE)/ INCREASE IN CASH	-1,678,163	325,080
CASH - BEGINNING OF PERIOD	4,007,823	3,682,743
CASH - END OF PERIOD	2,329,660	4,007,823
Supplemental disclosures of cash flow information:	'	'
Cash paid for interest	4,598,172	2,814,747
Cash paid for income taxes	'	'

1_Business_Description

1 Business Description	12 Months Ended
	Jun. 30, 2014
Notes	'
1 Business Description	'
	1                BUSINESS DESCRIPTION
	Aoxing Pharmaceutical Co., Inc. (“the Company” or “Aoxing Pharma”) is a specialty pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotic, pain-management, and addiction treatment pharmaceutical products.
	As of June 30, 2014, the Company had one operating subsidiary: Hebei Aoxing Pharmaceutical Co., Inc. (“Hebei”), which is organized under the laws of the People’s Republic of China (“PRC”).  As of June 30, 2014, the Company owned 95% of the issued and outstanding common stock of Hebei.
	Since 2002, Hebei has been engaged in developing narcotic, pain management, and addiction treatment pharmaceutical products, building its facilities and obtaining the requisite licenses from the Chinese Government.  Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, Hebei now has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for manufacturing narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals throughout China of its narcotic drugs and pain medicines.
	In April, 2008, Hebei completed the acquisition of 100% of the registered capital of Lerentang (“LRT”).  LRT was engaged in the manufacture and distribution of Chinese traditional medicines focusing on pain management related therapeutics within China.  By 2011 the manufacturing operations of LRT had been completely integrated into Hebei.  Currently over 80% of the Company’s revenues derive from one herbal extraction, obtained from the acquisition of LRT, which is used to alleviate oral/dental and bone pain.
	Liquidity and Capital Resources
	Currently and historically, the Company has managed to operate the business with negative net working capital. The Company’s negative working capital is primarily due to our net loss, which we funded by an increase in short-term bank loans, and the reclassification of $10.1 million in bank debt from long-term to current liabilities.
	The Company is able to operate with a negative net working capital because of additional loans from unrelated and related parties. During the year ended June 30, 2014, the Company was able to obtain short-term and long-term loans from unrelated parties and use these funds to repay bank loans. The Company believes operating cash flows turning positive in the near-term, continued support from related parties, and the ability to continue to roll over short-term debt, taken together, provide adequate resources to fund ongoing operations in the foreseeable future. The Company believes that the increased market demand for its main product in the near term and sales from several new products in future years will produce substantial positive cash flow. If the Company’s short-term cash flows decrease significantly and the Company is unable to pay its short-term liabilities, the Company’s business, financial condition and results of operations could be materially affected.
	We have incurred recurring operating losses and had an accumulated deficit of $63.8 million as of June 30, 2014. In addition, we had negative working capital of $23.3 million as of June 30, 2014. Our history of operating losses and lack of binding financing commitments raise substantial doubt as to our ability to continue as a going concern.  Despite recent negative operating cash flow positions, our management anticipates that we will generate sufficient cash flows to fund our operations for the next twelve months by increasing revenues and profit margins of our core product sales and continued support from our lenders to rollover debt when it becomes due.  If future sales do not meet our forecasts, we may be required to fund operations by raising additional capital or seek external financing. As such, our ability to achieve our business plan is primarily dependent upon our ability to grow our planned level of operations and/or obtain sufficient additional capital at acceptable costs. With respect to these objectives, we cannot provide any assurance that we will succeed. If events or circumstances occur such that we are unable to or do not meet our operating plan as expected and/or do not secure additional financing, we may be required to significantly curtail or cease operations.
	Investment in Joint Venture (“JV”)
	On April 26, 2010, Aoxing Pharma and Johnson Matthey Plc (‘JM”) entered into an agreement to establish a joint venture focused on research, development, manufacturing and marketing of active pharmaceutical ingredients for narcotics and neurological drugs for the China market. The joint venture represents a significant new opportunity for both companies to expand their business in the rapidly growing pharmaceutical market in China.  Under the terms of the agreement, Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc, headquartered in the United Kingdom, will contribute technology expertise and capital to the joint venture. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The joint venture company is called Hebei Aoxing API Pharmaceutical Company, Ltd. (“API”).  Hebei Aoxing has a 51% stake in API, while Macfarlan Smith (Hong Kong) Ltd (a wholly owned subsidiary of JM) holds 49%. Each company has equal representation on the board of directors that will oversee a management team responsible for corporate strategies and operations.  The new joint venture is located on the Hebei campus in Xinle City, 200 kilometers southwest of Beijing.  On March 10, 2010, the joint venture obtained a business license from the City Industry & Commercial Administrative Bureau. The Company accounts for its investment in the Joint Venture under the equity method of accounting.

2_Significant_Accounting_Polic

2 Significant Accounting Policies	12 Months Ended
	Jun. 30, 2014
Notes	'
2 Significant Accounting Policies	'
	2                SIGNIFICANT ACCOUNTING POLICIES
	Basis of presentation
	The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.  These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD).
	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, impairment assessment of goodwill, and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.
	Cash and cash equivalents
	The Company maintains cash and cash equivalents with financial institutions in the PRC which are not insured or otherwise protected. Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.  Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
	Accounts Receivable
	Accounts receivables represent customer accounts receivables. The allowance for doubtful accounts is based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified.   The balances of allowance for doubtful accounts are $1,562,109 and $663,983 at June 30, 2014 and 2013 respectively. The Company recorded bad debt expense of $896,441 and $75,401 for the years ended June 30, 2014 and 2013, respectively.
	Inventories, net
	Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value.  Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $83,454 and $21,598 of obsolete inventory during the years ended June 30, 2014 and June 30, 2013, respectively. For the years ended June 30, 2014 and 2013, the Company’s allowance for obsolete inventory is $471,487 and $386,120, respectively.
	Advances to Suppliers
	The Company makes advances to certain vendors for purchase of its material and equipment. The advances to suppliers are interest free.
	Property and equipment
	Property and equipment are recorded at cost.  Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method for financial reporting purposes.
	Construction in progress is stated at cost, which includes the cost of construction, acquisition of plant and equipment and other direct costs attributable to the construction. Construction in progress is not depreciated until such time as the assets are completed and put into operational use. No capitalized interest is incurred during the period of construction.
	All land in the PRC is owned by the PRC government. The government in the PRC, according to the relevant PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of the land use right agreements on a straight-line basis, which is 50 years and they will expire in 2053.
	Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized.
	Estimated useful lives are as follows:
	Right to use land	50 years
	Building and building improvements	35 years
	Machinery and equipment	10 years
	Furniture and office equipment	5 years
	Automobiles	8 years
	Goodwill and intangible assets
	Goodwill was the result of the acquisition of LRT and 35% of Hebei Aoxing in 2008. Goodwill represents the cost of the acquired business in excess of the fair value of identifiable tangible and intangible net assets purchased.  For the year ended June 30, 2013, the Company engaged an independent valuation expert to assist in determining the fair value of the net assets of its Hebei reporting unit, which includes identifiable intangible assets, property and equipment and goodwill. The Company recorded an impairment of $7,055,364 for the year ended June 30, 2013. The remaining goodwill balance as of June 30, 2014 is nil.
	Definite lived intangible assets include drug permits recorded at cost less accumulated amortization and any recognized impairment loss. The drug permits were acquired in 2008 when the Company purchased LRT and are amortized over their estimated useful life of 15 years on a straight-line basis.  An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets ASC 360-10.  In accordance with Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, the Company performs an intangible asset impairment test for its definite-lived intangibles whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.  During the year ended June 30, 2013, it was determined some drug permits and licenses will not provide future benefits to the Company. Accordingly, an impairment provision of $616,947 was provided by the Company. The remaining intangible assets balance as of June 30, 2014 is $546,114.
	Revenue Recognition
	In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. The agreements with customers do not contain any rights of return other than for goods that fail to meet the specifications provided by the customer or other quality problems. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns is provided.
	The Company derives revenues from the sale of pharmaceutical products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.
	The Company recognizes revenue from the sale of products upon customers’ receipt of the shipment at the customers’ facility or upon when the transfer of title and risk of loss has transferred to the customer. The Company has distributor arrangements with certain parties for sale of its pharmaceutical products. The distributor agreements do not provide chargeback, price protection, or stock rotation rights.
	Research and Development
	Research and development is charged to expense as incurred.
	Share-Based Compensation
	Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period.  The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.
	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
	Income taxes
	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
	ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.
	Non-controlling interest
	Non-controlling interests in our subsidiaries are recorded in accordance with the provisions of ASC Topic 810, “Consolidation”, and are reported as a component of our equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interests are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, If any, will be reported at fair value with any gain or loss recognized in earnings.
	Under ASC 810-10-45-21, losses attributable to the parent and the non-controlling interest in a subsidiary may exceed their interests in the subsidiary’s equity. The excess, and any further losses attributable to the parent and the non-controlling interest, shall be attributed to those interests. That is, the non-controlling interest shall continue to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.
	Currency translation
	Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (”RMB”).  Revenue and expense accounts are translated at the average rates during the period, and balance sheet items are translated at year-end rates.  Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders’ equity.  Gains and losses from foreign currency transactions are recognized in current operations.
			2014	2013
	Year ended RMB: US$ exchange rate		6.1577	6.1882
	Average yearly RMB: US$ exchange rate		6.1467	6.2814
	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 USD at the rates used in translation.
	Fair value of financial instruments
	The Company has adopted ASC Topic 820, ”Fair Value Measurement and Disclosure”, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items.
	As of June 30, 2014, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value.  The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of June 30, 2014.
	As of June 30, 2014, the Company does not have any level 3 financial instruments.  The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill would be adjusted to fair value if it is deemed to be impaired. Certain unobservable units for these assets are offered quotes, lack of marketability, long-term revenue growth rates and discounts rates.  For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement.  In general, a change in the long-term growth rate of our Hebei Aoxing business unit could negatively affect the fair value of our goodwill.
	Comprehensive income
	ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income or loss, as presented in the accompanying statement of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit
	Earnings per share
	Basic earnings per common share are computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities (such as warrants and convertible preferred stock) outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
	Statement of cash flows
In accordance with the provisions of Accounting Standards Codification on “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.
Segment reporting
ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the year ended June 30, 2014, ASC 280 has an immaterial effect on the Company’s financial statements, as the Company consists of one reportable business segment.  All revenue is from customers in the PRC.  The majority of the Company’s assets are located in the PRC.
Recent accounting pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
In July 2013, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update or ASU No. 2013-11, "Income Taxes (Topic740):  Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists (a consensus of the FASB Emerging Issues Task Force)." This ASU states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, except in certain situations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements.
In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for periods beginning after December 15, 2014. The Company currently does not have operations that are reported as discontinued operations and does not expect the adoption of this guidance to have a material effect the Company’s financial position, results of operations, or cash flows.

3_Going_Concern

3 Going Concern	12 Months Ended
	Jun. 30, 2014
Notes	'
3 Going Concern	'
	3                 GOING CONCERN
	The Company incurred a net loss of $8,634,380 and had $7,729,977 negative cash flow from operations during the year ended June 30, 2014. As of June 30, 2014, the Company’s current liabilities exceeded its current assets by $23,294,186. The Company had cash and cash equivalents of $2,329,660 as of June 30, 2014. The Company’s ability to continue as a going concern is dependent on many events outside of its direct control, including, among other things, the amount of working capital that the Company has available. The Company’s inability to generate cash flows from operations to meet its obligations and the uncertainty of raising the funds required for operations on reasonable terms, among other factors, raises substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	Management of the Company believes that the Company's large negative working capital will improve gradually during fiscal year 2015. Management expects the improvement to come from conversion of debt into equity, equity fund raising and improved operating results. Management anticipates that these improvements will enable the Company to sustain continuing high interest expenses and fund on-going operations.
	The management of the Company has taken a number of actions and will continue to address this situation in order to restore the Company to a sound financial position with an appropriate business strategy going forward. During the year ended June 30, 2014, the Company obtained an extension of the short term borrowing of $3.2 million from Shijiazhuang Construction Investment Corporation for another 12 months. The loan was originally due on November 3, 2013 and the new due date is November 11, 2014. The Company further obtained a $3.2 million bank loan from China Merchant Bank during the year ended June 30, 2014. In addition, the Company terminated the advertising contracts with five television stations at the end of September 2013 in order to reduce costs.
	In July 2014, six creditors agreed to convert $4.6 million in debt to shares at a conversion rate of $0.39 per share. At the same time, the Board of Directors instructed the officers to apply for additional loan of $4.9 million from bank to supplement the cash flow. In addition, the Company is reviewing possible adjustments to the sales team and marketing policies to make the sales profitable in a faster manner.
	Considering that revenue for the year ended June 30, 2014 was higher than revenue during the prior year, management believes operating cash flows will turn positive in the near-term as a result of its new marketing campaign and increased sales force. Management believes that the increased market demand for its main product in the near term and sales from several new products that the Company is currently advertising will be sufficient to offset the increased selling expenses and generate substantial positive operating cash flows. Management also believes that the Company will have continued support from related parties, and will have the ability to continue to roll over short-term debt. Lastly, the Company also started the process of securing additional funds and adopted various cost-saving strategies.

4_Inventories_Net

4 Inventories, Net	12 Months Ended
	Jun. 30, 2014
Notes	'
4 Inventories, Net	'
	4                 INVENTORIES, NET
	Inventories consist of the following:
		June 30,
		2014		2013
	Work in process	$	642,842	$	1,041,267
	Raw materials		669,880		509,209
	Finished goods		882,552		1,071,402
		$	2,195,274	$	2,621,878
	The allowance for obsolete inventory as of June 30, 2014 and 2013 was $471,487 and $386,120, respectively.

5_Property_and_Equipment_Net

5 Property and Equipment, Net	12 Months Ended
	Jun. 30, 2014
Notes	'
5 Property and Equipment, Net	'
	5                PROPERTY AND EQUIPMENT, NET
	Property, plant and equipment, net, consisted of the following:
		June 30,
		2014		2013
	Right to use land	$	8,122,480	$	8,082,447
	Building and building improvements		19,297,882		13,514,738
	Machinery and equipment		3,926,297		3,763,566
	Furniture and office equipment		621,988		596,306
	Automobiles		567,297		624,012
	Construction in progress		266,260		5,792,345
			32,802,204		32,373,414
	Accumulated depreciation and amortization		6,383,362		5,431,636
		$	26,418,842	$	26,941,778
	Depreciation expense for the years ended June 30, 2014 and 2013 were $951,726 and $1,015,760, respectively.

6_Equitymethod_Investment_in_J

6 Equity-method Investment in Joint Venture	12 Months Ended
	Jun. 30, 2014
Notes	'
6 Equity-method Investment in Joint Venture	'
	6                 EQUITY-METHOD INVESTMENT IN JOINT VENTURE
	The Company accounts for its investment in API (see Note 1) under the equity method of accounting.
	Summarized unaudited financial information for our investment in API, assuming a 100% ownership interest, is as follows:
		June 30,
		2014			2013
	Current assets	$	23,144		$	8,964
	Noncurrent assets		795,273			844,268
	Current liabilities		506,354			338,761
	Noncurrent liabilities		-			-
	Equity		312,063			514,471
	Revenues
	General and administrative expenses		(205,323	)		(224,989	)
	Net loss	$	(205,323	)	$	(224,989	)
	The Company recorded a loss on investment of $104,715 and $114,744 for the years ended June 30, 2014 and 2013 respectively for its 51% (50% control right) share of API.

7_Shortterm_Borrowing

7 Short-term Borrowing	12 Months Ended
	Jun. 30, 2014
Notes	'
7 Short-term Borrowing	'
	7                SHORT-TERM BORROWING
	Short-term borrowing consists of the following:
		June 30,
		2014			2013
	Shijiazhuang Finance Bureau (a)		$	81,199		$	80,799
	Shijiazhuang Construction Investment Group Co., Ltd (b)			3,247,966			3,231,958
	Hebei Chuangyu Investment Group Co., Ltd (c)			1,948,780			-
	Hebei Hengrui Sunshine Pharmacy Co., Ltd (d)			3,247,966			-
	Mr. Liu Shujun (e)			260,519			-
	Mr. Li Hui (f)			538,208			-
	Shijiazhuang Red Property Management Co., Ltd (g)			2,073,826			-
	Total		$	11,398,464		$	3,312,757
	(a) A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.
	(b) A one-year term loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The note bears an annual interest rate of 15% and was due on August 3, 2013, at which time it was rolled-over for 3 months until November 3, 2013 and further extended to November 11, 2014. The note was secured by certain registered trademarks and renewal certificates relating to Aoxing’s Zhongtongan capsule.
	(c) A four months term loan from Hebei Chuangyu Investment Group Co., Ltd. The note bears an annual interest rate of 15% and was due on November 22, 2014.
	(d) A one-year term loan from Hebei Hengrui Sunshine Pharmacy Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.
	(e) A one-year term loan from Mr. Liu Shujun. The note bears an annual interest rate of 15% and was due on May 21, 2015.
	(f) On December 21, 2012, the Company obtained RMB2,000,000 (approximately $324,797) term loan from Mr. Li Hui. The note bears an annual interest rate of 27.6% and was due on December 31, 2014. On March 1, 2013, the Company further obtained RMB1,314,120 (approximately $213,411) term loan from Mr. Li Hui. The note bears an annual interest rate of 20% and was due on February 28, 2015.
	(g) A one-year term loan from Shijiazhuang Red Property Management Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.

8_Loan_Payable_Bank

8 Loan Payable - Bank	12 Months Ended
	Jun. 30, 2014
Notes	'
8 Loan Payable - Bank	'
	8                 LOAN PAYABLE – BANK
	Loan payable – bank consist of the following loans collateralized by assets of the company:
		June 30,
		2014		2013
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of  7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	-	$	4,847,936
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		-		3,231,958
	Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of  7.8%, initially made on  December 27, 2013 for one year maturing on December 26, 2014		3,247,966		-
	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for two year maturing on September 23, 2014		-		387,835
		$	3,247,966	$	8,467,729

9_Loan_Payable_Other

9 Loan Payable - Other	12 Months Ended
	Jun. 30, 2014
Notes	'
9 Loan Payable - Other	'
	9                LOAN PAYABLE – OTHER
	Loan payable – other consist of loans from unrelated third-parties, bearing interest at an average rate of 17.57% and 17.9% as of June 30, 2014 and 2013, respectively.  Loans will mature as following:
	June 30,
		2014		2013
	Within one year	$	-	$	-
	1 – 2 years		-		1,403,591
	2 – 3 years		1,354,810		-
	Total		1,354,810		1,403,591
	Less current portion		-		-
		$	1,354,810	$	1,403,591

10_Loan_Payable_Related_Partie

10 Loan Payable - Related Parties	12 Months Ended
	Jun. 30, 2014
Notes	'
10 Loan Payable - Related Parties	'
	10                LOAN PAYABLE – RELATED PARTIES
	Loan payable – related parties consists of loans from shareholders, officers, and other related parties, bearing interest at an average rate of 13.94% and 15.88% per annum as of June 30, 2014 and 2013, respectively. Loans will mature as follows:
		June 30,
		2014		2013
	Within one year	$	1,084,248	$	2,101,998
	1 – 2 years		-		1,561,013
	2 – 3 years		6,146,803		-
	Total		7,231,051		3,663,011
	Less current portion		-1,084,248		-2,101,998
		$	6,146,803	$	1,561,013

11_Long_Term_Bank_Loan

11 Long Term Bank Loan	12 Months Ended
	Jun. 30, 2014
Notes	'
11 Long Term Bank Loan	'
	11           LONG TERM BANK LOAN
	On September 24, 2012, the Company entered into a loan agreement with Beijing International Trust Co., Ltd and obtained a loan of RMB45 million (approximately $7.3 million) with a term of two years. This loan requires interest only payments every quarter on the 20th of March, June, September and December. This loan bears an 18.0% interest per annum.  The loan matures on September 23, 2014 and the Company must repay 15%, 15% and 50% of the original loan balance 20 days, 10 days and 5 days, respectively, before the maturity date. The loan also requires two initial repayments of RMB1.2 million (approximately $0.4 million) each on July 20, 2013 and December 20, 2013. The loan is classified as current portion of long-term bank loan in the Balance Sheet.
	On December 20, 2012, the Company obtained an additional loan of RMB20 million (approximately $3.2 million) from Beijing International Trust Co., Ltd with a 16.5% interest per annum that will mature on September 21, 2014. Both loans interest payments are due quarterly on the 21thof March, June, September and December. The loan is classified as current portion of long-term bank loan in the Balance Sheet.

12_Deferred_Income

12 Deferred Income	12 Months Ended
	Jun. 30, 2014
Notes	'
12 Deferred Income	'
	12           DEFERRED INCOME
	The balance of deferred income represents government grants related to the Company's construction in progress ("CIP"). It will be recognized in subsidy income on a systematic basis (straight-line method) over the useful life of the fixed asset transferred from CIP which is a project to reform and improve the production line of the Zhongtongan. As of June 30, 2014, the CIP did not meet the condition of usage that is a prerequisite for reclassification to property and equipment. See Note 5.

13_Accrued_Expenses_and_Other_

13 Accrued Expenses and Other Current Liabilities	12 Months Ended
	Jun. 30, 2014
Notes	'
13 Accrued Expenses and Other Current Liabilities	'
	13              ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
	Accrued expenses and taxes consist of the following:
		June 30,
		2014		2013
	Accrued salaries and benefits	$	817,306	$	867,961
	Accrued interest		1,294,934		698,320
	Accrued taxes		418,485		255,275
	Deposit payable		605,130		429,610
	Due to employee		46,746		46,516
	Advance from customers		733,144		516,183
	Other accounts payable		286,376		711,486
	Other accrued expenses and current liabilities		232,669		883,325
		$	4,434,790	$	4,408,676

14_Stock_Options

14 Stock Options	12 Months Ended
	Jun. 30, 2014
Notes	'
14 Stock Options	'
	14              STOCK OPTIONS
	On February 1, 2011 and April 2, 2011, the Company issued 50,000 and 170,000, a total of 220,000 options to management and employees. These stock compensation grants were valued at $48,057 and $163,362 and the Company recorded $20,024 and $163,362 in compensation expense for the year ended June 30, 2011. The remainder of the value of the grants, $28,033, was recognized as compensation expense during the year ended June 30, 2012.
	On February 1, 2012, the Company issued a total of 50,000 options to an employee. This stock compensation grant was valued at $17,771 and the Company recorded $7,405 in compensation expense for the year ended June 30, 2012.  Subsequently, this employee terminated his employment with the Company on July 1, 2012 resulting in the cancelation of the options.
	The Company has no unrecognized compensation expense as of June 30, 2012 and no further options were issued by the Company during the year ended June 30, 2013 and 2014.
	The Company recorded nil stock option compensation expense for year ended June 30, 2014 and 2013.
	A summary of option activity as of June 30, 2014 and 2013, and changes during the years then ended is as followings:
							Weighted-avg.		Aggregate
				Weighted-avg.			remaining		intrinsic
		Shares		Exercise Price			Term (yr.)		Value
	On June 30, 2012		270,000	$	1.7		3.2		$	0
	Granted:		-	$	-		-			-
	Exercised:		-		-		-			-
	Forfeited:		-138,000	-			-		-
	On June 30, 2013		132,000	$	2		1.1		$	0
	Granted:		-	$	-			-	-
	Exercised:		-	-			-		-
	Forfeited:		-	-			-		-
	On June 30, 2014		132,000	$		2	0.1		$		0

15_Issuance_of_Common_Stock

15 Issuance of Common Stock	12 Months Ended
	Jun. 30, 2014
Notes	'
15 Issuance of Common Stock	'
	15              ISSUANCE OF COMMON STOCK
	On October 21, 2013, the Company issued 60,000 shares of common stock to three independent director for services rendered. Total value of the compensation is approximately $19,200 based on closing average price of $0.32 during the period of service.
	On October 23, 2012, the Company issued 79,809 shares of common stock to an independent director for services rendered. Total value of the compensation is approximately $22,000 based on closing average stock price of $0.28 during the period of service.
	On November 7, 2012, the Company issued 120,000 shares of common stock to management related to a separation agreement.  Total value of the stock grants is $69,300, based on the stock price of $0.58.

16_Taxes

16 Taxes	12 Months Ended
	Jun. 30, 2014
Notes	'
16 Taxes	'
	16              TAXES
	The Company’s Chinese subsidiaries are governed by the Income Tax Law of the People’s Republic of China concerning 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.
	The reconciliation of income tax at the U.S. statutory rate to the Company’s effective tax rate is as follows:
		Year Ended June 30,
		2014			2013
	Tax at U.S. Statutory rate	$	(3,022,033	)	$	(6,051,716		)
	Tax rate difference between China and U.S.		3,765,170			541,696
	Change in Valuation Allowance		-2,416,252			1,852,280
	Net operating loss expired		1,666,605			1,786,650
	Stock and option compensation		6,510			50,892
	Impairment loss on goodwill		-			1,820,198
	Effective tax rate	$	-		$	-
	The provisions of income taxes (credit) are summarized as follows:
		Year Ended June 30,
		2014			2013
	Current	$			$	-
	Deferred - U.S.		(91,156	)		(176,469	)
	Deferred – China		2,507,409			(1,532,812	)
	Valuation allowance - U.S.		91,156			176,469
	Valuation allowance – China		(2,507,409	)		1,532,812
	Total	$	-		$	-
	The tax effects of temporary differences that give rise to the Company’s net deferred tax asset as of June 30, 2014 and 2013 are as follows:
		Year Ended June 30,
		2014			2013
	Net operating loss carryforward - China	$	3,106,728		$	2,930,676
	Net operating loss carryforward - US		1,705,262			1,614,106
	Allowance for doubtful accounts		-792,888			427,752
	Others		-790,452			672,369
			3,228,650			5,644,903
	Less: valuation allowance- U.S.		-1,705,262			-1,614,106
	valuation allowance- China.		-1,523,388			-4,030,797
	Deferred tax assets	$	-		$	-
	As of June 30, 2014, the Company has a full valuation allowance for its deferred tax asset balance related to China and the US.  The Company restated the prior year financial statements to provide a full valuation allowance for deferred tax assets.  The Company’s loss carry forwards for the past 5 years are a significant amount of the deferred tax assets and due to certain negative indicators that were present as of June 30, 2014, the Company determined it was appropriate under US GAAP to restate the prior year financial statements and provide a 100% valuation allowance for the deferred tax assets.
	For the year ended June 30, 2014 and 2013, the Company did not have any interest and penalties associated with tax positions. As of June 30, 2014 and 2013, the Company did not have any significant unrecognized uncertain tax positions.

17_Concentrations

17 Concentrations	12 Months Ended
	Jun. 30, 2014
Notes	'
17 Concentrations	'
	17              CONCENTRATIONS
	Sales to two major customers were 7% and 4% of total sales for the year ended June 30, 2014.  Sales to two major customers were 21% and 11% of total sales for the year ended June 30, 2013.
	Sales of one major product represented approximately 92% and 91% of total sales for the year ended June 30, 2014 and 2013, respectively.
	Two major customers accounted for nil and 1% of outstanding accounts receivable as of June 30, 2014. Two major customers accounted for 10% and 1% of outstanding accounts receivable as of June 30, 2013.

18_Subsequent_Events

18 Subsequent Events	12 Months Ended
	Jun. 30, 2014
Notes	'
18 Subsequent Events	'
	18              SUBSEQUENT EVENTS
	On July 31, 2014 the Company entered into Exchange Agreements with six of its creditors.  The Exchange Agreements provide that debts owed by the Company to the six creditors will be satisfied by the issuance of the Company's common stock at an exchange rate of $0.39 per share. On August 28, 2014 the agreement between the Company and the six creditors became effective. As a result, 11,862,278 shares were issued, and there are now 61,737,100 shares of our common stock issued and outstanding. The creditors, debts and number of shares to be issued are as follows:
	Creditor	Debt	Shares
	Zhenjiang Yue	$2,842,788	7,289,199
	Yumin Yue	$486,224	1,246,727
	Guoan Zhang	$324,149	831,152
	Hui Li	$534,846	1,371,400
	Hua Chen Construction LLC	$178,282	457,133
	Shujun Liu	$260,000	666,667
	TOTAL	$4,626,289	11,862,278
	Zhenjiang Yue is the Company's Chief Executive Officer.  Yumin Yue is his daughter.  Guoan Zhang is the Company's Acting Chief Financial Officer.  The Audit Committee of the Board of Directors reviewed and approved the transactions with these related parties.  The Company’s Board of Directors approved all six transactions.
	On July 21, 2014, the Company entered into a loan agreement with Postal Savings Bank of China and obtained a loan of RMB30 million (approximately $4.9 million4,900,000) with a term of one year. This loan bears an annual floating rate of 30% higher than the interest rate of the China People Bank rate.
	In accordance with ASC 855 “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, we have evaluated all events or transactions that occurred after June 30, 2014 up through the date we issued the consolidated financial statements and has determined that there was no other material event that occurred after the date of the balance sheets included in this report.

2_Significant_Accounting_Polic1

2 Significant Accounting Policies: Basis of Presentation (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Basis of Presentation	'
	Basis of presentation
	The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated.  These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD).

2_Significant_Accounting_Polic2

2 Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Use of Estimates in The Preparation of Financial Statements	'
	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, impairment assessment of goodwill, and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.

2_Significant_Accounting_Polic3

2 Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Cash and Cash Equivalents	'
	Cash and cash equivalents
	The Company maintains cash and cash equivalents with financial institutions in the PRC which are not insured or otherwise protected. Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.  Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

2_Significant_Accounting_Polic4

2 Significant Accounting Policies: Accounts Receivable (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Accounts receivables represent customer accounts receivables. The allowance for doubtful accounts is based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified.   The balances of allowance for doubtful accounts are $1,562,109 and $663,983 at June 30, 2014 and 2013 respectively. The Company recorded bad debt expense of $896,441 and $75,401 for the years ended June 30, 2014 and 2013, respectively.

2_Significant_Accounting_Polic5

2 Significant Accounting Policies: Inventories, Net (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Inventories, Net	'
	Inventories, net
	Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value.  Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $83,454 and $21,598 of obsolete inventory during the years ended June 30, 2014 and June 30, 2013, respectively. For the years ended June 30, 2014 and 2013, the Company’s allowance for obsolete inventory is $471,487 and $386,120, respectively.

2_Significant_Accounting_Polic6

2 Significant Accounting Policies: Advances To Suppliers (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Advances To Suppliers	'
	Advances to Suppliers
	The Company makes advances to certain vendors for purchase of its material and equipment. The advances to suppliers are interest free.

2_Significant_Accounting_Polic7

2 Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Property and Equipment	'
	Property and equipment
	Property and equipment are recorded at cost.  Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method for financial reporting purposes.
	Construction in progress is stated at cost, which includes the cost of construction, acquisition of plant and equipment and other direct costs attributable to the construction. Construction in progress is not depreciated until such time as the assets are completed and put into operational use. No capitalized interest is incurred during the period of construction.
	All land in the PRC is owned by the PRC government. The government in the PRC, according to the relevant PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of the land use right agreements on a straight-line basis, which is 50 years and they will expire in 2053.
	Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized.
	Estimated useful lives are as follows:
	Right to use land	50 years
	Building and building improvements	35 years
	Machinery and equipment	10 years
	Furniture and office equipment	5 years
	Automobiles	8 years

2_Significant_Accounting_Polic8

2 Significant Accounting Policies: Goodwill and Intangible Assets (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Goodwill and Intangible Assets	'
	Goodwill and intangible assets
	Goodwill was the result of the acquisition of LRT and 35% of Hebei Aoxing in 2008. Goodwill represents the cost of the acquired business in excess of the fair value of identifiable tangible and intangible net assets purchased.  For the year ended June 30, 2013, the Company engaged an independent valuation expert to assist in determining the fair value of the net assets of its Hebei reporting unit, which includes identifiable intangible assets, property and equipment and goodwill. The Company recorded an impairment of $7,055,364 for the year ended June 30, 2013. The remaining goodwill balance as of June 30, 2014 is nil.
	Definite lived intangible assets include drug permits recorded at cost less accumulated amortization and any recognized impairment loss. The drug permits were acquired in 2008 when the Company purchased LRT and are amortized over their estimated useful life of 15 years on a straight-line basis.  An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets ASC 360-10.  In accordance with Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, the Company performs an intangible asset impairment test for its definite-lived intangibles whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.  During the year ended June 30, 2013, it was determined some drug permits and licenses will not provide future benefits to the Company. Accordingly, an impairment provision of $616,947 was provided by the Company. The remaining intangible assets balance as of June 30, 2014 is $546,114.

2_Significant_Accounting_Polic9

2 Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition
	In accordance with the ASC Topic 605, “Revenue Recognition”, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advances from customers. The agreements with customers do not contain any rights of return other than for goods that fail to meet the specifications provided by the customer or other quality problems. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns is provided.
	The Company derives revenues from the sale of pharmaceutical products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which is levied on the majority of the products at the rate 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.
	The Company recognizes revenue from the sale of products upon customers’ receipt of the shipment at the customers’ facility or upon when the transfer of title and risk of loss has transferred to the customer. The Company has distributor arrangements with certain parties for sale of its pharmaceutical products. The distributor agreements do not provide chargeback, price protection, or stock rotation rights.

Recovered_Sheet1

2 Significant Accounting Policies: Research and Development (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Research and Development	'
	Research and Development
	Research and development is charged to expense as incurred.

Recovered_Sheet2

2 Significant Accounting Policies: Share-based Compensation (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Share-based Compensation	'
	Share-Based Compensation
	Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period.  The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award.

Recovered_Sheet3

2 Significant Accounting Policies: Impairment of Long Lived Assets (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Impairment of Long Lived Assets	'
	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

Recovered_Sheet4

2 Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Income Taxes	'
	Income taxes
	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
	ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

Recovered_Sheet5

2 Significant Accounting Policies: Non-controlling Interest (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Non-controlling Interest	'
	Non-controlling interest
	Non-controlling interests in our subsidiaries are recorded in accordance with the provisions of ASC Topic 810, “Consolidation”, and are reported as a component of our equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interests are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, If any, will be reported at fair value with any gain or loss recognized in earnings.
	Under ASC 810-10-45-21, losses attributable to the parent and the non-controlling interest in a subsidiary may exceed their interests in the subsidiary’s equity. The excess, and any further losses attributable to the parent and the non-controlling interest, shall be attributed to those interests. That is, the non-controlling interest shall continue to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance.

Recovered_Sheet6

2 Significant Accounting Policies: Currency Translation (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Currency Translation	'
	Currency translation
	Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (”RMB”).  Revenue and expense accounts are translated at the average rates during the period, and balance sheet items are translated at year-end rates.  Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders’ equity.  Gains and losses from foreign currency transactions are recognized in current operations.
		2014	2013
	Year ended RMB: US$ exchange rate	6.1577	6.1882
	Average yearly RMB: US$ exchange rate	6.1467	6.2814
	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 USD at the rates used in translation.

Recovered_Sheet7

2 Significant Accounting Policies: Fair Value Measurement (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Fair Value Measurement	'
	Fair value of financial instruments
	The Company has adopted ASC Topic 820, ”Fair Value Measurement and Disclosure”, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items.
	As of June 30, 2014, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value.  The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of June 30, 2014.
	As of June 30, 2014, the Company does not have any level 3 financial instruments.  The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill would be adjusted to fair value if it is deemed to be impaired. Certain unobservable units for these assets are offered quotes, lack of marketability, long-term revenue growth rates and discounts rates.  For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement.  In general, a change in the long-term growth rate of our Hebei Aoxing business unit could negatively affect the fair value of our goodwill.

Recovered_Sheet8

2 Significant Accounting Policies: Comprehensive Income (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Comprehensive Income	'
	Comprehensive income
	ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income or loss, as presented in the accompanying statement of changes in shareholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit

Recovered_Sheet9

2 Significant Accounting Policies: Earnings Per Share (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Earnings Per Share	'
	Earnings per share
	Basic earnings per common share are computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities (such as warrants and convertible preferred stock) outstanding. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.

Recovered_Sheet10

2 Significant Accounting Policies: Statement of Cash Flows (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Statement of Cash Flows	'
	Statement of cash flows
	In accordance with the provisions of Accounting Standards Codification on “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Recovered_Sheet11

2 Significant Accounting Policies: Segment Reporting (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Segment Reporting	'
	Segment reporting
	ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the year ended June 30, 2014, ASC 280 has an immaterial effect on the Company’s financial statements, as the Company consists of one reportable business segment.  All revenue is from customers in the PRC.  The majority of the Company’s assets are located in the PRC.

Recovered_Sheet12

2 Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Recent Accounting Pronouncements	'
	Recent accounting pronouncements
	The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
	In July 2013, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update or ASU No. 2013-11, "Income Taxes (Topic740):  Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists (a consensus of the FASB Emerging Issues Task Force)." This ASU states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, except in certain situations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements.
	In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for periods beginning after December 15, 2014. The Company currently does not have operations that are reported as discontinued operations and does not expect the adoption of this guidance to have a material effect the Company’s financial position, results of operations, or cash flows.

Recovered_Sheet13

2 Significant Accounting Policies: Currency Translation: Schedule of Currency Translation (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Currency Translation	'
		2014	2013
	Year ended RMB: US$ exchange rate	6.1577	6.1882
	Average yearly RMB: US$ exchange rate	6.1467	6.2814

4_Inventories_Net_Schedule_of_

4 Inventories, Net: Schedule of Inventory, Current (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Inventory, Current	'
		June 30,
		2014		2013
	Work in process	$	642,842	$	1,041,267
	Raw materials		669,880		509,209
	Finished goods		882,552		1,071,402
		$	2,195,274	$	2,621,878

5_Property_and_Equipment_Net_P

5 Property and Equipment, Net: Property, Plant and Equipment (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Property, Plant and Equipment	'
		June 30,
		2014		2013
	Right to use land	$	8,122,480	$	8,082,447
	Building and building improvements		19,297,882		13,514,738
	Machinery and equipment		3,926,297		3,763,566
	Furniture and office equipment		621,988		596,306
	Automobiles		567,297		624,012
	Construction in progress		266,260		5,792,345
			32,802,204		32,373,414
	Accumulated depreciation and amortization		6,383,362		5,431,636
		$	26,418,842	$	26,941,778

6_Equitymethod_Investment_in_J1

6 Equity-method Investment in Joint Venture: Schedule of Equity Method Investments (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Equity Method Investments	'
		June 30,
		2014			2013
	Current assets	$	23,144		$	8,964
	Noncurrent assets		795,273			844,268
	Current liabilities		506,354			338,761
	Noncurrent liabilities		-			-
	Equity		312,063			514,471
	Revenues
	General and administrative expenses		(205,323	)		(224,989	)
	Net loss	$	(205,323	)	$	(224,989	)

7_Shortterm_Borrowing_Schedule

7 Short-term Borrowing: Schedule of Short Term Debt (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Short Term Debt	'
		June 30,
		2014			2013
	Shijiazhuang Finance Bureau (a)		$	81,199		$	80,799
	Shijiazhuang Construction Investment Group Co., Ltd (b)			3,247,966			3,231,958
	Hebei Chuangyu Investment Group Co., Ltd (c)			1,948,780			-
	Hebei Hengrui Sunshine Pharmacy Co., Ltd (d)			3,247,966			-
	Mr. Liu Shujun (e)			260,519			-
	Mr. Li Hui (f)			538,208			-
	Shijiazhuang Red Property Management Co., Ltd (g)			2,073,826			-
	Total		$	11,398,464		$	3,312,757

8_Loan_Payable_Bank_Schedule_o

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Long-term Debt Instruments	'
		June 30,
		2014		2013
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of  7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	-	$	4,847,936
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		-		3,231,958
	Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of  7.8%, initially made on  December 27, 2013 for one year maturing on December 26, 2014		3,247,966		-
	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for two year maturing on September 23, 2014		-		387,835
		$	3,247,966	$	8,467,729

9_Loan_Payable_Other_Schedule_

9 Loan Payable - Other: Schedule of Maturities of Long-term Debt (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Maturities of Long-term Debt	'
	June 30,
		2014		2013
	Within one year	$	-	$	-
	1 – 2 years		-		1,403,591
	2 – 3 years		1,354,810		-
	Total		1,354,810		1,403,591
	Less current portion		-		-
		$	1,354,810	$	1,403,591

10_Loan_Payable_Related_Partie1

10 Loan Payable - Related Parties: Schedule of Related Party Transactions (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Related Party Transactions	'
		June 30,
		2014		2013
	Within one year	$	1,084,248	$	2,101,998
	1 – 2 years		-		1,561,013
	2 – 3 years		6,146,803		-
	Total		7,231,051		3,663,011
	Less current portion		-1,084,248		-2,101,998
		$	6,146,803	$	1,561,013

13_Accrued_Expenses_and_Other_1

13 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Accounts Payable and Accrued Liabilities	'
		June 30,
		2014		2013
	Accrued salaries and benefits	$	817,306	$	867,961
	Accrued interest		1,294,934		698,320
	Accrued taxes		418,485		255,275
	Deposit payable		605,130		429,610
	Due to employee		46,746		46,516
	Advance from customers		733,144		516,183
	Other accounts payable		286,376		711,486
	Other accrued expenses and current liabilities		232,669		883,325
		$	4,434,790	$	4,408,676

14_Stock_Options_Schedule_of_S

14 Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Share-based Compensation, Stock Options, Activity	'
							Weighted-avg.		Aggregate
				Weighted-avg.			remaining		intrinsic
		Shares		Exercise Price			Term (yr.)		Value
	On June 30, 2012		270,000	$	1.7		3.2		$	0
	Granted:		-	$	-		-			-
	Exercised:		-		-		-			-
	Forfeited:		-138,000	-			-		-
	On June 30, 2013		132,000	$	2		1.1		$	0
	Granted:		-	$	-			-	-
	Exercised:		-	-			-		-
	Forfeited:		-	-			-		-
	On June 30, 2014		132,000	$		2	0.1		$		0

16_Taxes_Schedule_of_Effective

16 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Effective Income Tax Rate Reconciliation	'
		Year Ended June 30,
		2014			2013
	Tax at U.S. Statutory rate	$	(3,022,033	)	$	(6,051,716	)
	Tax rate difference between China and U.S.		3,765,170			541,696
	Change in Valuation Allowance		-2,416,252			1,852,280
	Net operating loss expired		1,666,605			1,786,650
	Stock and option compensation		6,510			50,892
	Impairment loss on goodwill		-			1,820,198
	Effective tax rate	$	-		$	-

16_Taxes_Schedule_of_Component

16 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Components of Income Tax Expense (Benefit)	'
		Year Ended June 30,
		2014			2013
	Current	$			$	-
	Deferred - U.S.		(91,156	)		(176,469	)
	Deferred – China		2,507,409			(1,532,812	)
	Valuation allowance - U.S.		91,156			176,469
	Valuation allowance – China		(2,507,409	)		1,532,812
	Total	$	-		$	-

16_Taxes_Schedule_of_Deferred_

16 Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Deferred Tax Assets and Liabilities	'
		Year Ended June 30,
		2014		2013
	Net operating loss carryforward - China	$	3,106,728	$	2,930,676
	Net operating loss carryforward - US		1,705,262		1,614,106
	Allowance for doubtful accounts		-792,888		427,752
	Others		-790,452		672,369
			3,228,650		5,644,903
	Less: valuation allowance- U.S.		-1,705,262		-1,614,106
	valuation allowance- China.		-1,523,388		-4,030,797
	Deferred tax assets	$	-	$	-

18_Subsequent_Events_Schedule_

18 Subsequent Events: Schedule of Subsequent Events (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Subsequent Events	'
	Creditor	Debt	Shares
	Zhenjiang Yue	$2,842,788	7,289,199
	Yumin Yue	$486,224	1,246,727
	Guoan Zhang	$324,149	831,152
	Hui Li	$534,846	1,371,400
	Hua Chen Construction LLC	$178,282	457,133
	Shujun Liu	$260,000	666,667
	TOTAL	$4,626,289	11,862,278

Recovered_Sheet14

2 Significant Accounting Policies: Accounts Receivable (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Allowance for doubtful accounts	$1,562,109	$663,983
Allowance for Doubtful Accounts Receivable, Write-offs	$896,441	$75,401

Recovered_Sheet15

2 Significant Accounting Policies: Inventories, Net (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Inventory markdown	'	$3,979
Inventory Valuation Reserves	471,487	386,120
Obsolete Inventory	'	'
Inventory markdown	$83,454	$21,598

Recovered_Sheet16

2 Significant Accounting Policies: Property and Equipment (Details)	12 Months Ended
	Jun. 30, 2014
Right to use land	'
Property, Plant and Equipment, Useful Life	'50 years
Building and Building Improvements	'
Property, Plant and Equipment, Useful Life	'35 years
Machinery and Equipment	'
Property, Plant and Equipment, Useful Life	'10 years
Furniture and Fixtures	'
Property, Plant and Equipment, Useful Life	'5 years
Automobiles	'
Property, Plant and Equipment, Useful Life	'8 years

Recovered_Sheet17

2 Significant Accounting Policies: Goodwill and Intangible Assets (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Impairment charge on goodwill	'	$7,055,364
Restructuring, Settlement and Impairment Provisions	$616,947	'

Recovered_Sheet18

2 Significant Accounting Policies: Currency Translation: Schedule of Currency Translation (Details)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Year ended RMB: US$ exchange rate	6.1577	6.1882
Average yearly RMB: US$ exchange rate	6.1467	6.2814

3_Going_Concern_Details

3 Going Concern (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Details	'	'	'
NET LOSS	$8,634,380	$17,290,618	'
NET CASH USED IN OPERATING ACTIVITIES	-7,729,977	-8,317,173	'
Working Capital Deficit	23,294,186	'	'
Cash and cash equivalents	$2,329,660	$4,007,823	$3,682,743

4_Inventories_Net_Schedule_of_1

4 Inventories, Net: Schedule of Inventory, Current (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Inventory, Work in Process, Gross	$642,842	$1,041,267
Inventory, Raw Materials, Gross	669,880	509,209
Inventory, Finished Goods, Gross	882,552	1,071,402
Inventories, net	$2,195,274	$2,621,878

4_Inventories_Net_Details

4 Inventories, Net (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Inventory Valuation Reserves	$471,487	$386,120

5_Property_and_Equipment_Net_P1

5 Property and Equipment, Net: Property, Plant and Equipment (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Property, Plant and Equipment, Gross	$32,802,204	$32,373,414
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	6,383,362	5,431,636
Property and equipment, net of accumulated depreciation	26,418,842	26,941,778
Right to use land	'	'
Property, Plant and Equipment, Gross	8,122,480	8,082,447
Building	'	'
Property, Plant and Equipment, Gross	19,297,882	13,514,738
Machinery and Equipment	'	'
Property, Plant and Equipment, Gross	3,926,297	3,763,566
Furniture and Fixtures	'	'
Property, Plant and Equipment, Gross	621,988	596,306
Automobiles	'	'
Property, Plant and Equipment, Gross	567,297	624,012
Construction in Progress	'	'
Property, Plant and Equipment, Gross	$266,260	$5,792,345

5_Property_and_Equipment_Net_D

5 Property and Equipment, Net (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Depreciation, Nonproduction	$951,726	$1,015,760

6_Equitymethod_Investment_in_J2

6 Equity-method Investment in Joint Venture: Schedule of Equity Method Investments (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Equity Method Investment, Summarized Financial Information, Current Assets	$23,144	$8,964
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	795,273	844,268
Equity Method Investment, Summarized Financial Information, Current Liabilities	506,354	338,761
Equity Method Investment Summarized Financial Information, Equity	312,063	514,471
Equity Method Investment, Summarized Financial Information, Cost of Sales	-205,323	-224,989
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	($205,323)	($224,989)

6_Equitymethod_Investment_in_J3

6 Equity-method Investment in Joint Venture (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$104,715	$114,744

7_Shortterm_Borrowing_Schedule1

7 Short-term Borrowing: Schedule of Short Term Debt (Details) (USD $)	Jun. 30, 2014		Jun. 30, 2013
Short-term borrowings	$11,398,464		$3,312,757
Shijiazhuang Finance Bureau	'		'
Short-term borrowings	81,199	[1]	80,799	[1]
Shijiazhuang Construction Investment Group Co., Ltd	'		'
Short-term borrowings	3,247,966	[2]	3,231,958	[2]
Hebei Chuangyu INvestment Group Co., Ltd	'		'
Short-term borrowings	1,948,780	[3]	'
Hebei Hengrui Sunshine Pharmacy Co., Ltd	'		'
Short-term borrowings	3,247,966	[4]	'
Mr. Liu Shujun	'		'
Short-term borrowings	260,519	[4],[5]	'
Mr. Li Hui	'		'
Short-term borrowings	538,208	[6]	'
Shijiazhuang Red Property Management Co., Ltd	'		'
Short-term borrowings	$2,073,826	[7]	'
[1]	A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.
[2]	A one-year term loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The note bears an annual interest rate of 15% and was due on August 3, 2013, at which time it was rolled-over for 3 months until November 3, 2013. The note was secured by certain registered trademarks and renewal certificates relating to AoxingBs Zhongtongan capsule.
[3]	A four months term loan from Hebei Chuangyu Investment Group Co., Ltd. The note bears an annual interest rate of 15% and was due on November 22, 2014.
[4]	A one-year term loan from Hebei Hengrui Sunshine Pharmacy Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.
[5]	A one-year term loan from Mr. Liu Shujun. The note bears an annual interest rate of 15% and was due on May 21, 2015.
[6]	On December 21, 2012, the Company obtained RMB2,000,000 (approximately $324,797) term loan from Mr. Li Hui. The note bears an annual interest rate of 27.6% and was due on December 31, 2014. On March 1, 2013, the Company further obtained RMB1,314,120 (approximately $213,411) term loan from Mr. Li Hui. The note bears an annual interest rate of 20% and was due on February 28, 2015.
[7]	A one-year term loan from Shijiazhuang Red Property Management Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.

8_Loan_Payable_Bank_Schedule_o1

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Details) (USD $)	Jun. 30, 2014		Jun. 30, 2013
LoansPayableToBankCurrent	$3,247,966		$8,467,729
Bank of Communications of China	'		'
LoansPayableToBankCurrent	'		4,847,936	[1]
Postal Savings Bank	'		'
LoansPayableToBankCurrent	'		3,231,958	[2]
China Merchant Bank	'		'
LoansPayableToBankCurrent	3,247,966	[3]	'
Beijing International Trust Co., Ltd	'		'
LoansPayableToBankCurrent	'		$387,835	[4]
[1]	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014
[2]	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8% interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014
[3]	Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of 7.8%, initially made on December 27, 2013 for one year maturing on December 26, 2014
[4]	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for two years maturing on September 23, 2014

9_Loan_Payable_Other_Details

9 Loan Payable - Other (Details)	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Accounts Payable, Interest-bearing, Interest Rate	17.57%	17.90%

9_Loan_Payable_Other_Schedule_1

9 Loan Payable - Other: Schedule of Maturities of Long-term Debt (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Other Loans Payable	$1,354,810	$1,403,591
Loan payable - others	1,354,810	1,403,591
1-2 years	'	'
Other Loans Payable	'	1,403,591
2-3 years	'	'
Other Loans Payable	$1,354,810	'

10_Loan_Payable_Related_Partie2

10 Loan Payable - Related Parties (Details)	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Accounts Payable Related Parties Interest Bearing Interest Rate	13.94%	15.88%

10_Loan_Payable_Related_Partie3

10 Loan Payable - Related Parties: Schedule of Related Party Transactions (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Due to Related Parties	$7,231,051	$3,663,011
Current portion of loan payable - related parties	-1,084,248	-2,101,998
Loan payable - related parties	6,146,803	1,561,013
Within on year	'	'
Due to Related Parties	1,084,248	2,101,998
1-2 years	'	'
Due to Related Parties	'	1,561,013
2-3 years	'	'
Due to Related Parties	$6,146,803	'

13_Accrued_Expenses_and_Other_2

13 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Accrued Salaries, Current	$817,306	$867,961
Accrued interest	1,294,934	698,320
Accrued Income Taxes, Current	418,485	255,275
Deposit Liability, Current	605,130	429,610
Other Employee Related Liabilities, Current	46,746	46,516
Customer Advances, Current	733,144	516,183
Accounts Payable, Other, Current	286,376	711,486
Other Accrued Liabilities, Current	232,669	883,325
Accrued expenses and other current liabilities	$4,434,790	$4,408,676

14_Stock_Options_Details

14 Stock Options (Details) (USD $)	1 Months Ended							12 Months Ended		1 Months Ended	12 Months Ended
	Feb. 28, 2012	Apr. 30, 2011	Feb. 28, 2011	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011	Jun. 30, 2011	Feb. 28, 2012	Jun. 30, 2013
								1-Feb-11	2-Apr-11	1-Feb-12	1-Feb-12
Common stock options granted	50,000	170,000	50,000	'	'	'	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	'	'	'	132,000	132,000	270,000	220,000	'	'	'	'
Stock compensation grant value	'	$163,362	$48,057	'	'	'	'	'	'	$17,771	'
Stock or Unit Option Plan Expense	'	'	'	'	'	'	'	20,024	163,362	'	7,405
Stock compensation grant remaining value	'	$28,033	'	'	'	'	'	'	'	'	'

14_Stock_Options_Schedule_of_S1

14 Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Details	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	132,000	132,000	270,000	220,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$2	$1.70	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	'1 month 6 days	'1 year 1 month 6 days	'3 years 2 months 12 days	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	'	$0	$0	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	'	-138,000	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$2	$2	$1.70	'

15_Issuance_of_Common_Stock_De

15 Issuance of Common Stock (Details) (USD $)	Oct. 21, 2013	Nov. 07, 2012	Oct. 23, 2012
Details	'	'	'
Shares issued to independent director	60,000	'	79,809
Shares issued to independent director value	$19,200	'	$22,000
Shares issued to independent director average stock price	$0.32	'	$0.28
Shares issued to management for seperation agreement	'	120,000	'
Shares issued to management for seperation agreement value	'	$69,300	'
Shares issued to management for seperation agreement stock price	'	$0.58	'

16_Taxes_Schedule_of_Effective1

16 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	($3,022,033)	($6,051,716)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	3,765,170	541,696
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	-2,416,252	1,852,280
Effective Income Tax Rate Reconciliation, Net operating loss expired	1,666,605	1,786,650
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	6,510	50,892
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount	'	$1,820,198

16_Taxes_Schedule_of_Component1

16 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Deferred Federal Income Tax Expense (Benefit)	($91,156)	($176,469)
Deferred Foreign Income Tax Expense (Benefit)	2,507,409	-1,532,812
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Income Tax Expense	91,156	176,469
Deferred Taxes Business Combination Valuation Allowance Available To Reduce Income Tax Expense China	($2,507,409)	$1,532,812

16_Taxes_Schedule_of_Deferred_1

16 Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	$3,106,728	$2,930,676
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	1,705,262	1,614,106
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts	-792,888	427,752
Deferred Tax Assets, Other	-790,452	672,369
Deferred Tax Assets, Gross	3,228,650	5,644,903
U.S.	'	'
Deferred Tax Assets, Valuation Allowance	-1,705,262	-1,614,106
China	'	'
Deferred Tax Assets, Valuation Allowance	($1,523,388)	($4,030,797)

17_Concentrations_Details

17 Concentrations (Details)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Details	'	'
Concentration Risk, Customer	'Sales to two major customers were 7% and 4% of total sales for the year ended June 30, 2014.	'Sales to two major customers were 21% and 11% of total sales for the year ended June 30, 2013.
Concentration Risk, Service Provided	'	'Sales of one major product represented approximately 92% and 91% of total sales for the year ended June 30, 2014 and 2013, respectively.
Concentration Risk, Other Risk	'Two major customers accounted for nil and 1% of outstanding accounts receivable as of June 30, 2014.	'Two major customers accounted for 10% and 1% of outstanding accounts receivable as of June 30, 2013.

18_Subsequent_Events_Schedule_1

18 Subsequent Events: Schedule of Subsequent Events (Details) (USD $)	Jul. 31, 2014
Debt satisfied by issuance of common stock	$4,626,289
Issuance of common stock to satisfy debt	11,862,278
Creditor-Zhenjiang Yue	'
Debt satisfied by issuance of common stock	2,842,788
Issuance of common stock to satisfy debt	7,289,199
Creditor-Yumin Yue	'
Debt satisfied by issuance of common stock	486,224
Issuance of common stock to satisfy debt	1,246,727
Creditor-Guoan Zhang	'
Debt satisfied by issuance of common stock	324,149
Issuance of common stock to satisfy debt	831,152
Creditor-Hui Li	'
Debt satisfied by issuance of common stock	534,846
Issuance of common stock to satisfy debt	1,371,400
Creditor-Hua Chen Construction LLC	'
Debt satisfied by issuance of common stock	178,282
Issuance of common stock to satisfy debt	457,133
Creditor-Shujun Liu	'
Debt satisfied by issuance of common stock	$260,000
Issuance of common stock to satisfy debt	666,667

18_Subsequent_Events_Details

18 Subsequent Events (Details) (Postal Savings Bank, USD $)	Jul. 21, 2014
Postal Savings Bank	'
Loan Agreement	$4,900,000