Aoxing Pharmaceutical (AOXG) 10-Q 15 May 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2015	15-May-15
Document and Entity Information
Entity Registrant Name	AOXING PHARMACEUTICAL COMPANY, INC.
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	1060426
Current Fiscal Year End Date	-24
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	2015
Document Fiscal Period Focus	Q3
Entity Common Stock, Shares Outstanding		69,819,259

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Jun. 30, 2014
CURRENT ASSETS:
Cash and cash equivalents	$4,786,830	$2,329,660
Accounts receivable, net of allowance for doubtful accounts of $1,046,176 and $1,562,109, respectively	6,895,330	3,890,550
Inventories, net	1,971,502	2,195,274
Prepaid expenses and other current assets	3,193,917	2,505,128
TOTAL CURRENT ASSETS	16,847,579	10,920,612
LONG-TERM ASSETS:
Property and equipment, net of accumulated depreciation	28,778,791	26,418,842
Intangible assets, net	500,546	546,115
Investment in joint venture	122,073	189,185
TOTAL LONG-TERM ASSETS	29,401,410	27,154,142
TOTAL ASSETS	46,248,989	38,074,754
CURRENT LIABILITIES:
Short-term borrowings	9,379,188	11,398,464
Accounts payable	2,501,309	3,883,198
Loan payable - bank	16,307,627	3,247,966
Current portion of loan payable - related parties	1,310,403	1,084,248
Current portion of loan payable - other		10,166,133
Accrued expenses and other current liabilities	6,883,268	4,434,790
TOTAL CURRENT LIABILITIES	36,381,795	34,214,799
LONG-TERM LIABILITIES:
Loan payable - related parties	4,044,986	6,146,803
Loan payable - others	1,360,466	1,354,810
Deferred income	368,552	367,020
TOTAL LONG-TERM LIABILITIES	5,774,004	7,868,633
Stockholder's Equity
Common stock, par value $0.001, 100,000,000 shares authorized, 68,789,847 and 49,874,822 shares issued and outstanding on March 31, 2015 and on June 30, 2014 respectively	68,790	49,875
Additional paid in capital	64,918,628	58,315,446
Accumulated deficit	-62,512,407	-63,849,681
Accumulated other comprehensive income	3,027,005	2,979,235
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY	5,502,016	-2,505,125
NONCONTROLLING INTEREST IN SUBSIDIARIES	-1,408,826	-1,503,553
TOTAL EQUITY	4,093,190	-4,008,678
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$46,248,989	$38,074,754

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Mar. 31, 2015	Jun. 30, 2014
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$1,046,176	$1,562,109
Common stock par value	$0.00	$0.00
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	68,789,847	49,874,822
Common stock shares outstanding	68,789,847	49,874,822

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenue
SALES	$6,590,736	$2,445,793	$17,586,519	$9,489,708
COST OF SALES	1,078,200	1,425,630	4,090,586	5,464,000
GROSS PROFIT	5,512,536	1,020,163	13,495,933	4,025,708
OPERATING EXPENSES:
Research and development expense	73,970	222,654	277,117	491,370
General and administrative expenses	662,065	798,674	1,994,560	2,246,628
Selling expenses	2,548,848	559,226	5,527,281	3,436,015
Depreciation and amortization	135,973	157,483	416,049	477,493
TOTAL OPERATING EXPENSES	3,420,856		8,215,007
PROFIT/(LOSS) FROM OPERATIONS	2,091,680	-717,874	5,280,926	-2,625,798
OTHER INCOME (EXPENSE):
Interest expense, net of interest income	-1,246,920	-1,195,471	-4,068,200	-3,524,563
Equity in loss of joint venture, net	-19,688	-49	-67,677	-31,476
Subsidy income	4,866		284,439
TOTAL OTHER EXPENSE	-1,261,742	-1,195,520	-3,851,438	-3,556,039
PROFIT (LOSS) BEFORE INCOME TAXES	829,938	-1,913,394	1,429,488	-6,181,837
Income tax expense (credit)
NET PROFIT/ (LOSS)	829,938	-1,913,394	1,429,488	-6,181,837
Net Profit /(loss) attributed to non-controlling interest in subsidiaries	51,962	-91,257	92,213	-298,997
PROFIT (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY	777,976	-1,822,137	1,337,275	-5,882,840
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustment	14,766	-4,340	50,284	28,055
COMPREHENSIVE PROFIT (LOSS)	792,742	-1,826,477	1,387,559	-5,854,785
Other comprehensive income (loss) attributable to non-controlling interest	738	-217	2,514	1,403
COMPREHENSIVE PROFIT/ (LOSS) ATTRIBUTABLE TO THE COMPANY	$792,004	($1,826,260)	$1,385,045	($5,856,188)
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	$0.01	($0.04)	$0.02	($0.12)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	67,638,657	49,850,077	60,907,137	49,850,077

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES:
Net income/ (loss)	$1,337,275	($5,882,840)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	813,636	744,152
Inventory markdown	-7,852
Bad debts (written back)/written off	-296,168	126,595
Common stock issued for services	30,150	13,800
Equity in loss of joint venture, net	67,677	31,476
Net profit/(loss) attributable to non-controlling interests	92,213	-298,997
Change in accounts receivable	-2,512,353	-1,421,042
Change in inventories	240,017	733,887
Change in prepaid expenses and other current assets	-846,157	-908,822
Change in accounts payable	3,811,731	349,946
Change in accrued expenses and other current liabilities	2,417,693	-659,116
NET CASH GENERATED FROM (USED IN) OPERATING ACTIVITIES	5,147,862	-7,170,961
INVESTING ACTIVITIES:
Acquisition of property and equipment	-3,008,154	-172,530
NET CASH USED IN INVESTING ACTIVITIES	-3,008,154	-172,530
FINANCING ACTIVITIES:
Proceeds from bank loans	13,002,908	13,062,804
Payment of bank loans		-10,196,154
Short-term borrowings, net of repayment	-2,060,018	1,954,534
Proceed/?Payment? of other borrowings	-10,174,775	1,486,963
Sale of common stock	1,395,758
Repayment of loans to related party	-1,895,196	-588,773
NET CASH PROVIDED BY FINANCING ACTIVITIES	268,677	5,719,374
EFFECT OF EXCHANGE RATE ON CASH	48,785	6,833
INCREASE/ (DECREASE) IN CASH	2,457,170	-1,617,283
CASH - BEGINNING OF PERIOD	2,329,660	4,007,823
CASH - END OF PERIOD	4,786,830	2,390,540
Supplemental disclosures of cash flow information:
Cash paid for interest	2,566,158	3,093,765
Cash paid for income taxes

1_Basis_of_Presentation

1 Basis of Presentation	9 Months Ended
	Mar. 31, 2015
Notes
1 Basis of Presentation	1             BASIS OF PRESENTATION
	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the requirements for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. However, the information included in these interim financial statements reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the consolidated results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full year. The consolidated balance sheet as of June 30, 2014 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year 2014. These interim financial statements should be read in conjunction with that report.

2_Business_Description_and_Sig

2 Business Description and Significant Accounting Policies	9 Months Ended
	Mar. 31, 2015
Notes
2 Business Description and Significant Accounting Policies	2                   BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES
	Aoxing Pharmaceutical Co., Inc. (“the Company” or “AoxingPharma”) 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 March 31, 2015, the Company had one operating subsidiary: HebeiAoxing Pharmaceutical Co., Inc. (“Hebei”), which is organized under the laws of the People’s Republic of China (“PRC”) and 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. The manufacturing operations of LRT had been completely integrated into Hebei.
	Investment in Joint Venture (“JV”)
	On April 26, 2010, AoxingPharma 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 JV represents a significant 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 JV. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The JVcompany is called HebeiAoxing API Pharmaceutical Company, Ltd. (“API”). HebeiAoxing 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 JV is located on the Hebei campus in Xinle City, 200 kilometers southwest of Beijing. The Company accounts for its investment in the JV under the equity method of accounting.
	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, purchase price allocation of its acquisitions 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.
	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.
	Fair value measurement
	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 and classified within Level 1 of the fair value Hierarchy.
	As of March 31, 2015, 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 March 31, 2015.
	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 has been adjusted to fair value as it is deemed to be impaired.
	Recent accounting pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 will eliminate transaction-specific and industry-specific revenue recognition guidance under current US GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. The Company is currently assessing the impact the adoption of ASU 2014-09 and the effect of the standard on our ongoing financial reporting.
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), “Compensation—Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact of adopting this Update on its financial statements.
	In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which will explicitly require management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Currently, there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this Update provide that guidance. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term “substantial doubt”, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the first annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of adopting this update on its financial statements.
	In January 2015, the FASB issued Accounting Standards Update No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20)”, which simplifies income statement presentation by eliminating the concept of an extraordinary item. As a result, entities will no longer segregate an extraordinary item from the results of ordinary operations; separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and disclose income taxes and earnings per share data applicable to an extraordinary item. The guidance is effective for the Company beginning the first quarter of fiscal 2017 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position, results of operations, or cash flows.

3_Going_Concern

3 Going Concern	9 Months Ended
	Mar. 31, 2015
Notes
3 Going Concern	3               GOING CONCERN
	As of March 31, 2015, the Company’s current liabilities exceeded its current assets by $19,534,216. The Company had cash and cash equivalents of $4,786,830 as of March 31, 2015. 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 ability to obtain future funding. The Company’s inability to generate cash flows to meet its obligations due to the uncertainty of achieving operating profitability on an annual basis and raising required funding 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 improved operating results, by extending short term into longer term loans, and by selling equity and converting debt to equity. Management anticipates that these improvements will enable the Company to reduce current 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 first quarter of 2015, the Company completed the sale of 1,704,915 shares of its common stock to six investors, each of whom is either an employee or a consultant. The average purchase price for the shares was $0.32 per share. The Company also completed the sale of 480,000 shares of its common stock to a creditor at $0.5 per share to offset the loan payable.
	Revenue for the period ended March 31, 2015 was significantly higher than revenue during the prior year, an improvement that was primarily attributable to the changes in our marketing program. The Company’s previous sales process began with the sales manager who shipped the product to a third-party sales agent. The sales agent then sold the product to the customer. With the current sales process, the Company has gradually terminated the sales agent contracts and now sells the product directly to the customer. The sales price to direct customers is higher than the price to sales agencies, which has led to an increase in average price of our products.  Management believes the net profit and positive operating cash flows generated in these quarters will continue in the coming years due to the increased market demand for its main product. 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 through long term debt financing.

4_Inventories_Net

4 Inventories, Net	9 Months Ended
	Mar. 31, 2015
Notes
4 Inventories, Net
	4                  INVENTORIES, NET
	Inventories consist of the following:
		March 31,		June 30,
		2015		2014
	Work in process	$	826,747	$	1,006,295
	Raw materials		310,383		669,880
	Finished goods		1,299,949		992,554
	Inventory markdown		465,577		473,455
		$	1,971,502	$	2,195,274
	The provisions for obsolete inventory as of March 31, 2015 and June 30, 2014 were $465,577 and $473,455, respectively.

5_Equitymethod_Investment_in_J

5 Equity-method Investment in Joint Venture	9 Months Ended
	Mar. 31, 2015
Notes
5 Equity-method Investment in Joint Venture	5              EQUITY-METHOD INVESTMENT IN JOINT VENTURE
	The Company accounts for its investment in API (see Note 2), under the equity method of accounting.
	Summarized financial information for our investment in API assuming a 100% ownership interest is as follows:
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-15		30-Jun-14
	Current assets	$	10,161	$	23,144
	Noncurrent assets		770,579		795,273
	Current liabilities		600,516	$	506,354
	Noncurrent liabilities		--		--
	Equity		180,225	$	312,063
	Revenue		--		--
	General and administrative expenses		-132,701	$	-205,323
	Net loss	$	-132,701	$	-205,323

6_Shortterm_Borrowing

6. Short-term Borrowing	9 Months Ended
	Mar. 31, 2015
Notes
6. Short-term Borrowing	6.          SHORT-TERM BORROWING
	Short-term borrowing consists of the following:
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-15		30-Jun-14
	Shijiazhuang Finance Bureau  (a)	$	81,538	$	81,199
	Shijiazhuang Construction Investment Group Co. Ltd   (b)		5,218,441		3,247,966
	TianJin Heng Xing Mirco finance Bureau   (c)		4,076,906		-
	Hebei Chuangyu Investment Group Co., Ltd		-	$	1,948,780
	Hebei Hengrui Sunshine Pharmacy Co., Ltd		-		3,247,966
	Mr. Liu Shujun		-	$	260,519
	Mr. Li Hui		2,303		538,208
	Shijiazhuang Red Property Management Co., Ltd		-		2,073,826
	Total	$	9,379,188	$	11,398,464
	a)        A non – interest bearing note payable to Shijiazhuang Bureau, an agency of a local government, due on demand.
	b)        A one- year 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 and further extended to July 12, 2015. The note was secured by certain registered trademarks and renewal certificates relating to Aoxing’s Zhongtongan capsule.
	c)        A one year term loan from TianJin Heng Xing Mirco Finance Bureau. The note bears an annual interest rate of 20.04% and is due on March 17, 2016.

7_Accrued_Expenses_and_Other_C

7 Accrued Expenses and Other Current Liabilities	9 Months Ended
	Mar. 31, 2015
Notes
7 Accrued Expenses and Other Current Liabilities
	7              ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
	Accrued expenses and taxes consist of the following:
		March 31,		June 30,
		2015			2014
	Accrued salaries and benefits	$	722,425		$	817,306
	Accrued interest		1,530,754			1,294,934
	Accrued taxes		1,139,878			418,485
	Deposit payable		575,928			605,130
	Due to employees		46,942			46,746
	Advance from customers		284,327			733,144
	Other accounts payable		1,807,018			286,376
	Other accrued expenses and current liabilities		775,996			232,669
		$	6,883,268		$	4,434,790

8_Loan_Payable_Bank

8 Loan Payable - Bank	9 Months Ended
	Mar. 31, 2015
Notes
8 Loan Payable - Bank	8              LOAN PAYABLE – BANK
	Loan payable – bank consist of the following loans collateralized by assets of the company:
		March 31,		June 30,
		2015			2014
	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 26 December 2014.	$	--		$	3,247,966
	Bank Note in the amount of 30 million RMB with Postal Savings Bank bearing an 7.8% interest per annum, made on July 22, 2014 for one year maturing on July 21, 2015		4,892,288			--
	Bank Note in the amount of 20 million RMB with China Merchants Bank bearing an 7% interest per annum, made on Jan 05, 2015 for one year maturing on Jan 04, 2016		3,261,525
	Bank Note in the amount of 30 million RMB with China HuiRong Co., Ltd bearing an 10.0% interest per annum, initially made on March 17, 2015 for one year maturing on 16 March, 2016	$	4,892,289		$	--
	Bank Note in the amount of 20 million RMB with China Everbright Bank bearing an 7.84% interest per annum, made on Jan 16, 2015 for one year maturing on Jan 15, 2016		3,261,525
		$	16,307,627		$	3,247,966

9_Loan_Payable_Related_Parties

9 Loan Payable - Related Parties	9 Months Ended
	Mar. 31, 2015
Notes
9 Loan Payable - Related Parties
	9               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 17.76% and 13.94% per annum as of March 31, 2015 and June 30, 2014 respectively. Loans will mature as follows:
		March 31,		June 30,
		2014		2013
	Within one year		$            1,310,403		$       1,084,248
	1 – 2 years		-		-
	2 – 3 years		4,044,986		6,146,803
	Total		5,355,389		7,231,051
	Less current portion		-1,310,403		-1,084,248
	Loan payable-related parties, non-current		$             4,044,986		$       6,146,803

10_Loan_Payable_Other

10 Loan Payable - Other	9 Months Ended
	Mar. 31, 2015
Notes
10 Loan Payable - Other
	10           LOAN PAYABLE – OTHER
	Loan payable – other consist of loans from unrelated third-parties, bearing interest at an average rate of 17.90% and 17.57% per annum as of March 31, 2015 and June 30, 2014 respectively. Loans will mature as following:
		March 31,	June 30,
	Within one year	2015	2014
	1 – 2 years	1,360,466
	2 – 3 years	-	1,354,810
	Total	1,360,466	1,354,810
	Less current portion	-	-
	Loan payable-other, non-current	1,360,466,	$   1,354,810

11_Issuance_of_Common_Stock

11 Issuance of Common Stock	9 Months Ended
	Mar. 31, 2015
Notes
11 Issuance of Common Stock
	11           Issuance of Common Stock
	On August 28, 2014, the Company issued 11,862,278 shares of common stock in satisfaction of $4.6 million in debt. The shares were valued at $0.39 per share, which exceeded the six month average share price as well as the market price at time of issuance. Paid in capital was increased by $4,614,426 as a result of the exchange.
	On November 5, 2014 the Company sold to 22 of its employees a total of 4,527,832 shares of common stock for a total of $1,177,236 or $0.26 per share, which exceeded the market price on October 4, 2014, when the contract of sale was made.
	On February 3, 2015, the Company issued 340,000 shares of common stock to independent directors for services rendered by them.
	On January 29, 2015, the Company issued 1,704,915 shares of its common stock to six investors, each of whom is either an employee or a consultant to the Company. The average purchase price for the shares was $0.32 per share.
	On March 5, 2015, the Company issued 480,000 shares of its common stock to a creditor at $0.5 per share to offset a loan payable.

12_Taxes

12 Taxes	9 Months Ended
	Mar. 31, 2015
Notes
12 Taxes
	12           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:
		For nine months ended March 31,
		2015		2014
	Tax at U.S. Statutory rate	$	500,320	$	(2,163,643)
	Tax rate difference between China and U.S.		(2,655,633)		634,777
	Change in Valuation Allowance		2,155,314		1,528,866
	Effective tax rate	$	-	$	-
	The provisions of income taxes (credit) are summarized as follows:
		For nine months ended March 31,
		2015			2014
	Current	$	-		$	-
	Deferred - U.S.		-38,113			-68,510
	Deferred - China		(2,617,521)			-1,460,356
	Valuation allowance - U.S.		38,113			68,510
	Valuation allowance - China.		2,117,201			1,460,356
	Total	$	-		$	-
	The deferred tax assets are substantially related to loss carry forwards for the past 5 years under Chinese tax law. The Company determined a full valuation allowance was necessary as of March 31, 2015 and June 30, 2014.

13_Concentrations

13 Concentrations	9 Months Ended
	Mar. 31, 2015
Notes
13 Concentrations	13           CONCENTRATIONS
	Sales to two major customers were 6.19% and 5.56% of total sales for the three months ended March 31, 2015.  Sales to two major customers accounted for 6% and 6% of total sales for the three months ended March 31, 2014. As of March 31, 2015, the two major customers accounted for 3% and 0% of Company’s accounts receivable balance. As of June 30, 2014, the two major customers accounted for nil and 1% of Company’s accounts receivable balance.
	Sales of two major products represented approximately 96% and 1% of total sales for the three months ended March 31, 2015. Sales of two major products represented approximately 91% and 3% of total sales for the three months ended March 31, 2014.

14_Subsequent_Events

14 Subsequent Events	9 Months Ended
	Mar. 31, 2015
Notes
14 Subsequent Events	14           SUBSEQUENT EVENTS
	On April 8 2015, the company sold 508,000 shares of common stock to officers and employees of the Company at a price of $1.36 per share, which exceeded the market price at time of issuance
	On April 8 2015, the Company also issued 521,412 shares of common stock at a price of $1.36 per share to a creditor in satisfaction of $709,120 debt.
	Paid in capital was increased by $1,400,000 as a result of the issuance of the above common stock.

2_Business_Description_and_Sig1

2 Business Description and Significant Accounting Policies: Investment in Joint Venture ("JV") (Policies)	9 Months Ended
	Mar. 31, 2015
Policies
Investment in Joint Venture ("JV")	Investment in Joint Venture (“JV”)
	On April 26, 2010, AoxingPharma 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 JV represents a significant 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 JV. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The JVcompany is called HebeiAoxing API Pharmaceutical Company, Ltd. (“API”). HebeiAoxing 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 JV is located on the Hebei campus in Xinle City, 200 kilometers southwest of Beijing. The Company accounts for its investment in the JV under the equity method of accounting.

2_Business_Description_and_Sig2

2 Business Description and Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	9 Months Ended
	Mar. 31, 2015
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, purchase price allocation of its acquisitions 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_Business_Description_and_Sig3

2 Business Description and Significant Accounting Policies: Impairment of Long Lived Assets (Policies)	9 Months Ended
	Mar. 31, 2015
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.

2_Business_Description_and_Sig4

2 Business Description and Significant Accounting Policies: Fair Value Measurement (Policies)	9 Months Ended
	Mar. 31, 2015
Policies
Fair Value Measurement	Fair value measurement
	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 and classified within Level 1 of the fair value Hierarchy.
	As of March 31, 2015, 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 March 31, 2015.
	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 has been adjusted to fair value as it is deemed to be impaired.

2_Business_Description_and_Sig5

2 Business Description and Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Mar. 31, 2015
Policies
Recent Accounting Pronouncements
	Recent accounting pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 will eliminate transaction-specific and industry-specific revenue recognition guidance under current US GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. The Company is currently assessing the impact the adoption of ASU 2014-09 and the effect of the standard on our ongoing financial reporting.
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), “Compensation—Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. For all entities, the amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company is currently evaluating the impact of adopting this Update on its financial statements.
	In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which will explicitly require management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Currently, there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this Update provide that guidance. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term “substantial doubt”, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the first annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of adopting this update on its financial statements.
	In January 2015, the FASB issued Accounting Standards Update No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20)”, which simplifies income statement presentation by eliminating the concept of an extraordinary item. As a result, entities will no longer segregate an extraordinary item from the results of ordinary operations; separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and disclose income taxes and earnings per share data applicable to an extraordinary item. The guidance is effective for the Company beginning the first quarter of fiscal 2017 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position, results of operations, or cash flows.

4_Inventories_Net_Schedule_of_

4 Inventories, Net: Schedule of Inventory, Current (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Inventory, Current
	Inventories consist of the following:
		March 31,		June 30,
		2015		2014
	Work in process	$	826,747	$	1,006,295
	Raw materials		310,383		669,880
	Finished goods		1,299,949		992,554
	Inventory markdown		465,577		473,455
		$	1,971,502	$	2,195,274

5_Equitymethod_Investment_in_J1

5 Equity-method Investment in Joint Venture: Equity Method Investments (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Equity Method Investments
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-15		30-Jun-14
	Current assets	$	10,161	$	23,144
	Noncurrent assets		770,579		795,273
	Current liabilities		600,516	$	506,354
	Noncurrent liabilities		--		--
	Equity		180,225	$	312,063
	Revenue		--		--
	General and administrative expenses		-132,701	$	-205,323
	Net loss	$	-132,701	$	-205,323

6_Shortterm_Borrowing_Schedule

6. Short-term Borrowing: Schedule of Short-term Debt (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Short-term Debt
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-15		30-Jun-14
	Shijiazhuang Finance Bureau  (a)	$	81,538	$	81,199
	Shijiazhuang Construction Investment Group Co. Ltd   (b)		5,218,441		3,247,966
	TianJin Heng Xing Mirco finance Bureau   (c)		4,076,906		-
	Hebei Chuangyu Investment Group Co., Ltd		-	$	1,948,780
	Hebei Hengrui Sunshine Pharmacy Co., Ltd		-		3,247,966
	Mr. Liu Shujun		-	$	260,519
	Mr. Li Hui		2,303		538,208
	Shijiazhuang Red Property Management Co., Ltd		-		2,073,826
	Total	$	9,379,188	$	11,398,464

7_Accrued_Expenses_and_Other_C1

7 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Accounts Payable and Accrued Liabilities
		March 31,		June 30,
		2015			2014
	Accrued salaries and benefits	$	722,425		$	817,306
	Accrued interest		1,530,754			1,294,934
	Accrued taxes		1,139,878			418,485
	Deposit payable		575,928			605,130
	Due to employees		46,942			46,746
	Advance from customers		284,327			733,144
	Other accounts payable		1,807,018			286,376
	Other accrued expenses and current liabilities		775,996			232,669
		$	6,883,268		$	4,434,790

8_Loan_Payable_Bank_Schedule_o

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Long-term Debt Instruments
		March 31,		June 30,
		2015			2014
	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 26 December 2014.	$	--		$	3,247,966
	Bank Note in the amount of 30 million RMB with Postal Savings Bank bearing an 7.8% interest per annum, made on July 22, 2014 for one year maturing on July 21, 2015		4,892,288			--
	Bank Note in the amount of 20 million RMB with China Merchants Bank bearing an 7% interest per annum, made on Jan 05, 2015 for one year maturing on Jan 04, 2016		3,261,525
	Bank Note in the amount of 30 million RMB with China HuiRong Co., Ltd bearing an 10.0% interest per annum, initially made on March 17, 2015 for one year maturing on 16 March, 2016	$	4,892,289		$	--
	Bank Note in the amount of 20 million RMB with China Everbright Bank bearing an 7.84% interest per annum, made on Jan 16, 2015 for one year maturing on Jan 15, 2016		3,261,525
		$	16,307,627		$	3,247,966

9_Loan_Payable_Related_Parties1

9 Loan Payable - Related Parties: Schedule of Related Party Transactions (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Related Party Transactions
		March 31,		June 30,
		2014		2013
	Within one year		$            1,310,403		$       1,084,248
	1 – 2 years		-		-
	2 – 3 years		4,044,986		6,146,803
	Total		5,355,389		7,231,051
	Less current portion		-1,310,403		-1,084,248
	Loan payable-related parties, non-current		$             4,044,986		$       6,146,803

10_Loan_Payable_Other_Schedule

10 Loan Payable - Other: Schedule of Debt - Other (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Debt - Other
		March 31,	June 30,
	Within one year	2015	2014
	1 – 2 years	1,360,466
	2 – 3 years	-	1,354,810
	Total	1,360,466	1,354,810
	Less current portion	-	-
	Loan payable-other, non-current	1,360,466,	$   1,354,810

12_Taxes_Schedule_of_Effective

12 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation
		For nine months ended March 31,
		2015		2014
	Tax at U.S. Statutory rate	$	500,320	$	(2,163,643)
	Tax rate difference between China and U.S.		(2,655,633)		634,777
	Change in Valuation Allowance		2,155,314		1,528,866
	Effective tax rate	$	-	$	-

12_Taxes_Schedule_of_Component

12 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	9 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)
	The provisions of income taxes (credit) are summarized as follows:
		For nine months ended March 31,
		2015		2014
	Current	$	-	$	-
	Deferred - U.S.		-38,113		-68,510
	Deferred - China		(2,617,521)		-1,460,356
	Valuation allowance - U.S.		38,113		68,510
	Valuation allowance - China.		2,117,201		1,460,356
	Total	$	-	$	-

2_Business_Description_and_Sig6

2 Business Description and Significant Accounting Policies (Details)	9 Months Ended
	Mar. 31, 2015
Details
Noncontrolling Interest, Ownership Percentage by Parent	95.00%
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest	100.00%

3_Going_Concern_Details

3 Going Concern (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013
Details
Working Capital Deficit	$19,534,216
Cash and cash equivalents	$4,786,830	$2,329,660	$2,390,540	$4,007,823

4_Inventories_Net_Schedule_of_1

4 Inventories, Net: Schedule of Inventory, Current (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Details
Inventory, Work in Process, Gross	$826,747	$1,006,295
Inventory, Raw Materials, Gross	310,383	669,880
Inventory, Finished Goods, Gross	1,299,949	992,554
Inventory Adjustments	465,577	473,455
Inventories, net	$1,971,502	$2,195,274

4_Inventories_Net_Details

4 Inventories, Net (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Details
Inventory Valuation Reserves	$465,577	$473,455

5_Equitymethod_Investment_in_J2

5 Equity-method Investment in Joint Venture: Equity Method Investments (Details) (USD $)	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Details
Equity Method Investment, Summarized Financial Information, Current Assets	$10,161	$23,144
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	770,579	795,273
Equity Method Investment, Summarized Financial Information, Current Liabilities	600,516	506,354
Equity Method Investment Summarized Financial Information, Equity	180,225	312,063
Equity Method Investment, Summarized Financial Information, Cost of Sales	-132,701	-205,323
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	($132,701)	($205,323)

6_Shortterm_Borrowing_Schedule1

6. Short-term Borrowing: Schedule of Short-term Debt (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Short-term borrowings	$9,379,188	$11,398,464
Shijiazhuang Finance Bureau
Short-term borrowings	81,538	81,199
Shijiazhuang Construction Investment Group Co. Ltd
Short-term borrowings	5,218,441	3,247,966
TianJin Heng Xing Mirco finance Bureau
Short-term borrowings	4,076,906
Hebei Chuangyu Investment Group Co., Ltd
Short-term borrowings		1,948,780
Hebei Hengrui Sunshine Pharmacy Co., Ltd
Short-term borrowings		3,247,966
Mr. Liu Shujun
Short-term borrowings		260,519
Mr. Li Hui
Short-term borrowings	2,303	538,208
Shijiazhuang Red Property Management Co., Ltd
Short-term borrowings		$2,073,826

7_Accrued_Expenses_and_Other_C2

7 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Details
Accrued Salaries, Current	$722,425	$817,306
Accrued interest	1,530,754	1,294,934
Accrued Income Taxes, Current	1,139,878	418,485
Deposit Liability, Current	575,928	605,130
Other Employee Related Liabilities, Current	46,942	46,746
Customer Advances, Current	284,327	733,144
Accounts Payable, Other, Current	1,807,018	286,376
Other Accrued Liabilities, Current	775,996	232,669
Accrued expenses and other current liabilities	$6,883,268	$4,434,790

8_Loan_Payable_Bank_Schedule_o1

8 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Loans Payable To Bank Current	$16,307,627	$3,247,966
China Merchant Bank
Loans Payable To Bank Current		3,247,966
Postal Savings Bank
Loans Payable To Bank Current	4,892,288
ChinaMerchantBank2Member
Loans Payable To Bank Current	3,261,525
China HuiRong Co., Ltd
Loans Payable To Bank Current	4,892,289
ChinaEverbrightBankMember
Loans Payable To Bank Current	$3,261,525

9_Loan_Payable_Related_Parties2

9 Loan Payable - Related Parties (Details)	Mar. 31, 2015	Jun. 30, 2014
Details
Accounts Payable Related Parties Interest Bearing Interest Rate	17.76%	13.94%

9_Loan_Payable_Related_Parties3

9 Loan Payable - Related Parties: Schedule of Related Party Transactions (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Due to Related Parties	$5,355,389	$7,231,051
Current portion of loan payable - related parties	-1,310,403	-1,084,248
Loan payable - related parties	4,044,986	6,146,803
Within One Year
Due to Related Parties	1,310,403	1,084,248
2-3 Years
Due to Related Parties	$4,044,986	$6,146,803

10_Loan_Payable_Other_Details

10 Loan Payable - Other (Details)	Mar. 31, 2015	Jun. 30, 2014
Details
Accounts Payable, Interest-bearing, Interest Rate	17.90%	17.57%

10_Loan_Payable_Other_Schedule1

10 Loan Payable - Other: Schedule of Debt - Other (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Other Loans Payable	$1,360,466	$1,354,810
Loan payable - others	1,360,466	1,354,810
1-2 Years
Other Loans Payable	1,360,466
2-3 Years
Other Loans Payable		$1,354,810

11_Issuance_of_Common_Stock_De

11 Issuance of Common Stock (Details) (USD $)	9 Months Ended
	Mar. 31, 2015
Details
Issuance of common stock in satisfaction of debt	11,862,278
Paid In Capital Increased	$4,614,426
Common Stock shares sold to employees	4,527,832
Proceeds from Common Stock shares sold to employees	$1,177,236

12_Taxes_Schedule_of_Effective1

12 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$500,320	($2,163,643)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	-2,655,633	634,777
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$2,155,314	$1,528,866

12_Taxes_Schedule_of_Component1

12 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Deferred Federal Income Tax Expense (Benefit)	($38,113)	($68,510)
Deferred Foreign Income Tax Expense (Benefit)	-2,617,521	-1,460,356
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Income Tax Expense	38,113	68,510
Deferred Taxes Business Combination Valuation Allowance Available To Reduce Income Tax Expense China	$2,117,201	$1,460,356

13_Concentrations_Details

13 Concentrations (Details)	9 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Details
Concentration Risk, Customer	two major customers were 6.19% and 5.56% of total sales	two major customers accounted for 6% and 6% of total sales
Concentration Risk, Other Risk	two major customers accounted for 3% and 0% of Company’s accounts receivable balance		two major customers accounted for nil and 1% of Company’s accounts receivable balance
Concentration Risk, Product	two major products represented approximately 96% and 1% of total sales	two major products represented approximately 91% and 3% of total sales