Tianyin Pharmaceutical 10-Q 11 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2015	Aug. 11, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	TIANYIN PHARMACEUTICAL CO., INC.
Entity Central Index Key	1,362,718
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,432,791

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 15,163,772	$ 16,120,041
Restricted cash	305,841	994,017
Accounts receivable, net of allowance for doubtful accounts of $102,842 and $102,401 at March 31, 2015 and June 30, 2014, respectively	1,018,695	9,074,576
Inventory	$ 5,343,015	3,841,712
Loan receivable		1,981,280
Deferred tax assets	$ 1,357,402	$ 1,180,510
Prepaid R&D expenses - current portion	3,533,833
Other current assets	811,587	$ 587,384
Total current assets	27,534,145	33,779,520
Property and equipment, net	19,878,898	45,378,356
Intangibles, net	12,816,815	$ 27,699,733
Prepaid R&D expenses	176,692
Goodwill	212,030	$ 211,120
Assets held for sale	40,731,957
Total assets	101,350,537	$ 107,068,729
Current liabilities:
Accounts payable and accrued expenses	69,323	1,592,459
Accounts payable - construction related	762,366	2,238,927
Short-term bank loans	2,935,800	4,547,200
Income tax payable	46,681	35,832
Other taxes payable	101,353	390,490
Other current liabilities	230,164	522,995
Total current liabilities	4,145,687	9,327,903
Total liabilities	$ 4,145,687	$ 9,327,903
Stockholders' equity:
Preferred stock, $0.001 par value, 25,000,000 shares authorized, no shares issued and outstanding at March 31, 2015 and June 30, 2014
Common stock, $0.001 par value, 50,000,000 shares authorized, 29,546,276 shares issued, 29,432,791 shares outstanding at March 31, 2015 and June 30, 2014	$ 29,546	$ 29,546
Additional paid-in capital	27,807,961	30,189,802
Treasury stock, 113,485 shares at cost	(135,925)	(135,925)
Statutory reserve	7,071,650	6,976,412
Retained earnings	49,972,364	50,193,258
Accumulated other comprehensive income	10,836,254	10,423,712
Total stockholders' equity	95,581,850	97,676,805
Noncontrolling interest	1,623,000	64,021
Total equity	97,204,850	97,740,826
Total liabilities and equity	$ 101,350,537	$ 107,068,729

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 102,842	$ 102,401
Treasury stock, shares	113,485	113,485
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	29,546,276	29,432,791
Common stock, shares outstanding	29,546,276	29,432,791

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statements Of Operations [Abstract]
Sales	$ 3,962,295	$ 8,635,104	$ 20,387,416	$ 37,306,818
Cost of sales	2,236,182	5,137,767	9,933,128	21,598,669
Gross profit	1,726,113	3,497,337	10,454,288	15,708,149
Operating expenses
Selling expenses	653,485	1,529,796	3,499,285	6,497,715
General and administrative expenses	1,605,152	1,322,751	3,794,569	3,433,912
Research and development	895,181	238,941	2,902,431	742,269
Total operating expenses	3,153,818	3,091,488	10,196,285	10,673,896
Income (loss) from operations	(1,427,705)	405,849	258,003	5,034,253
Other income (expenses):
Interest income	11,622	27,074	25,441	135,808
Interest expense	(119,732)	(82,525)	(278,389)	(305,248)
Total other income (expenses)	(108,110)	(55,451)	(252,948)	(169,440)
Income (loss) before (credit) provision for income taxes	(1,535,815)	350,398	5,055	4,864,813
Provision (credit) for income taxes	(296,597)	358,860	140,567	1,720,724
Net income (loss)	(1,239,218)	(8,462)	(135,512)	3,144,089
Less: Net loss attributable to noncontrolling interest	(1,553)	(45,974)	(9,856)	(152,153)
Net income (loss) attributable to Tianyin Pharmaceutical Co., Inc.	$ (1,237,665)	$ 37,512	$ (125,656)	$ 3,296,242
Basic and diluted earnings (loss) per share	$ (0.04)	$ 0	$ 0	$ 0.11
Weighted average number of common shares outstanding:
Basic and diluted	29,432,791	29,405,013	29,432,791	29,390,090

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statements Of Comprehensive Income [Abstract]
Net income (loss)	$ (1,239,218)	$ (8,462)	$ (135,512)	$ 3,144,089
Other comprehensive income (loss)
Foreign currency translation adjustment	237,898	(891,567)	412,536	156,524
Total other comprehensive income (loss)	237,898	(891,567)	412,536	156,524
Total Comprehensive income (loss)	(1,001,320)	(900,029)	277,024	3,300,613
Less: Comprehensive income (loss) attributable to the noncontrolling interest	(1,554)	105,495	(9,862)	1,109
Comprehensive income (loss) attributable to Tianyin Pharmaceutical Co., Inc.	$ (999,766)	$ (1,005,524)	$ 286,886	$ 3,299,504

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net Income (loss)	$ (135,512)	$ 3,144,089
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,926,108	$ 1,946,239
Amortization of R&D contract	$ 2,640,625
Share-based payments		$ 55,000
Deferred tax assets	$ (176,892)
Changes in current assets and current liabilities:
Accounts receivable	8,065,216	$ 1,758,488
Inventory	(1,479,282)	$ 264,460
Prepaid R&D expenses	(6,337,500)
Other current assets	(220,856)	$ 269,913
Accounts payable and accrued expenses	(1,524,371)	66,776
Accounts payable - construction related	(1,480,745)	(2,740,773)
Income tax and other taxes payable	(279,095)	(740,547)
Other current liabilities	(294,000)	383,106
Net cash provided by operating activities	703,696	4,406,751
Cash flows from investing activities:
Addition of Contruction in process	(1,960,569)	$ (1,415,260)
Proceeds from loans receivable	1,982,500
Acquisition of non-controlling interests	(2,437,500)
Net cash used in investing activities	(2,415,569)	$ (1,415,260)
Cash flows from financing activities:
Changes in restricted cash	$ 689,913	4,565,120
Proceeds from short-term bank loans		4,565,120
Repayment of short-term bank loans	$ (1,625,000)	$ (5,967,264)
Capital contribution from non-controlling interest	1,625,000
Net cash provided by financing activities	689,913	$ 3,162,976
Effect of foreign currency translation on cash	65,691	99,810
Net increase (decrease) in cash and cash equivalents	(956,269)	6,254,277
Cash and cash equivalents - beginning of period	16,120,041	26,827,008
Cash and cash equivalents - ending of period	15,163,772	33,081,285
Supplemental disclosures of cash activities
Cash paid for interest	270,545	82,172
Cash paid for income taxes	$ 306,804	$ 726,789

Organization and Nature of Busi

Organization and Nature of Business	9 Months Ended
	Mar. 31, 2015
Organization and Nature of Business and Basis of Presentation and Consolidation [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS Tianyin Pharmaceutical (the “Company” or “TPI”), was established under the laws of Delaware. The Company’s primary business is to research, manufacture and sell pharmaceutical products in China through its wholly owned subsidiaries. The Company established a joint venture (“JV”) through its wholly owned subsidiary, Chengdu Tianyin Pharmaceutical Co., Ltd. (“Chengdu Tianyin”) with Shandong Buchang Pharmaceutical Co., Ltd. (“Shandong Buchang”) in November 2014. Chengdu Tianyin owned 95% and Shandong Buchang owned 5% of JV. In April and May 2015, the Company transferred a total 75% ownership of JV to Shandong Buchang for RMB 160 million (approximately $26 million). See Note 10 for details.

Basis of Presentation and Conso

Basis of Presentation and Consolidation	9 Months Ended
	Mar. 31, 2015
Organization and Nature of Business and Basis of Presentation and Consolidation [Abstract]
BASIS OF PRESENTATION AND CONSOLIDATION	NOTE 2 – BASIS OF PRESENTATION AND CONSOLIDATION The unaudited consolidated financial statements include the accounts of TPI and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with US GAAP applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended June 30, 2014, included in the Company’s annual report on Form 10-K filed with the U.S. Securities Exchange Commission on December 9, 2014, as not all disclosures required by US GAAP for annual financial statements are presented. The interim consolidated financial statements follow the same accounting policies and methods of computations as the audited consolidated financial statements for the year ended June 30, 2014. The Company uses the United States dollar (“U.S. Dollar” or “US$” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in their respective functional currency, being the primary currency of the economic environment in which their operations are conducted. Assets and liabilities of a subsidiary with functional currency other than U.S. Dollar are translated into U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statements of comprehensive income and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as a component of accumulated other comprehensive income.

Acquisition Of Non-Controlling

Acquisition Of Non-Controlling Interest	9 Months Ended
	Mar. 31, 2015
Acquisition of Non-Controlling Interest [Abstract]
ACQUISITION OF NON-CONTROLLING INTEREST	NOTE 3 – ACQUISITION OF NON-CONTROLLING INTEREST On September 30, 2014, the Company’s subsidiary, Chengdu Tianyin, acquired the remaining 13% of Sichuan Jiangchuan Pharmaceutical Co. Ltd (“JCM”) for RMB 15 million (approximately $2.4 million) from Total payment of RMB 15 million (approximately $2.4 million) was made on October 8, 2014.

Inventory

Inventory	9 Months Ended
	Mar. 31, 2015
Inventory [Abstract]
INVENTORY	NOTE 4 – INVENTORY Inventory as of March 31, 2015 and June 30, 2014 consists of the following: March 31, June 30, Raw materials $ 1,690,558 $ 690,355 Packaging supplies 927,330 387,599 Work in process 901,876 1,088,880 Finished goods 1,823,251 1,674,878 $ 5,343,015 $ 3,841,712

Prepaid Research and Developmen

Prepaid Research and Development Expense	9 Months Ended
	Mar. 31, 2015
Prepaid Research and Development Expense [Abstract]
PREPAID RESEARCH AND DEVELOPMENT EXPENSE	NOTE 5 – PREPAID RESEARCH AND DEVELOPMENT EXPENSE In July 2014, the Company’s subsidiary, Chengdu Tianyin, entered into a research and development agreement with a pharmaceutical research company, Kang Lu Biomedical Co. (“KL”). KL is a reputable TCM research company that specializes in the product development and CFDA application process for TCM extracts and healthcare products. Pursuant to the agreement, KL will provide research and development expanding formulation varieties from Gingko Mihuan Oral Liquid (GMOL) to Capsule formulation. The total contract price is RMB 65 million (approximately $10.5 million). The first payment of RMB 39 million (approximately $6.3 million) was paid in July 2014. The project is expected to be completed before August 2017. The total contract price is being amortized over the term of the agreement which is a period of three years on a straight line basis.

Short-Term Bank Loans

Short-Term Bank Loans	9 Months Ended
	Mar. 31, 2015
Short-Term Bank Loans [Abstract]
SHORT-TERM BANK LOANS	NOTE 6 – SHORT-TERM BANK LOANS Short-term bank loans consist of the following: March 31, June 30, 2015 2014 On October 30, 2013, the Company obtained a loan from China CITIC Bank, which matures on October 30, 2014. The interest is calculated using an annual fixed interest rate of 7.20% and paid monthly. The loan was guaranteed by the Company’s CEO, Guoqing Jiang and a third party. Loan principal of $1,611,400 (RMB 10 million) was repaid in October 2014, and the remaining loan principal of $2,935,800 was paid in full by April 29, 2015. $ 2,935,800 $ 4,547,200 On October 28, 2013, the Company obtained a loan with ability to borrow RMB 12 million (approximately $2 million) from China CITC Bank, which matures on October 30, 2014. The loan was guaranteed by the Company’s CEO and a third party. The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero. - - Total short-term bank loans $ 2,935,800 $ 4,547,200

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES The Company's subsidiary, Raygere, is incorporated in the British Virgin Islands. Under the corporate tax laws of British Virgin Islands, it is not subject to tax on income or capital gain. The operating subsidiaries in China are all subject to 25% income tax rate. The tax write- offs and loss profit credit could only be applied to the individual subsidiaries of TPI. In July 2006, the FASB issued ASC 740 that clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company did not recognize any benefits in the financial statements for the fiscal year ended June 30, 2014 and for the nine months ended March 31, 2015. The comparison of income tax expense at the U.S. statutory rate of 35% in 2015 and 2014, to the Company’s effective tax is as follows: Nine months ended 2015 2014 U.S. Statutory rate of 35% $ 12,636 $ 1,721,935 Tax rate difference between China and U.S. (1,506 ) (491,444 ) Change in valuation allowance 129,437 306,349 Tax paid for prior periods - 183,884 Effective tax $ 140,567 $ 1,720,724 The provisions for income taxes are summarized as follows: Nine months ended March 31, 2015 2014 Current $ 317,459 $ 1,720,724 Deferred (306,329 ) (306,349 ) Valuation allowance 129,437 306,349 Total $ 140,567 $ 1,720,724

Risk Factors

Risk Factors	9 Months Ended
	Mar. 31, 2015
Risk Factors [Abstract]
RISK FACTORS	NOTE 8 – RISK FACTORS The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations may be adversely influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. Specifically, the Company's business may be negatively influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Credit Risk Financial instruments, which potentially subject the Company to credit risk consists principally of cash on deposit with financial institutions. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and minimal credit risk exists with respect to these investments. Due to the state ownership of China’s majority of financial institutions, the policies that regulate the banking industry also presents a unique risk that impacts all industrial segments in China. The traditional industries such as pharmaceutical manufacturing without exception may also be affected in terms of capital expenditure for GMP certification, raw material purchases and etc.

Concentrations

Concentrations	9 Months Ended
	Mar. 31, 2015
Concentrations [Abstract]
CONCENTRATIONS	NOTE 9 –CONCENTRATIONS Concentrations In terms of individual product sales, our major product Gingko Mihuan Oral Liquid (GMOL) represented 62% or $12.7 million of total sales for the nine months ended March 31, 2015, as compared to 45% or $16.6 million of total sales for the nine months ended March 31, 2014. For the quarter ended March 31, 2015, GMOL sales represented 76% or $3.0 million as compared to 60% or $5.2 million for the quarter ended March 31, 2014. For the nine months ended March 31, 2015, one single customer accounted for 17% of the Company’s total sales compared with one customer accounted for 14% of the Company’s sales for the nine months ended March 31, 2014. For the three months ended March 31, 2015 and 2014, no single customer accounted for over 10% of the Company’s total sales. Purchases from one vendor accounted for 48% of the Company’s total purchases for the nine months ended March 31, 2015 as compared to four vendors accounted for 16%, 11%, 10% and 9% respectively of the Company’s total purchases for the nine months ended March 31, 2014. Purchases from three vendors accounted for 60%, 13% and 11% of the Company’s total purchases for the three months ended March 31, 2015 as compared to two vendors accounted for 25% and 19% respectively of the Company’s total purchases for the three months ended March 31, 2014.

Joint Venture

Joint Venture	9 Months Ended
	Mar. 31, 2015
Joint Venture [Abstract]
Joint Venture	NOTE 10 – Joint Venture Cooperation Framework Agreement On October 29, 2014, Shandong Buchang Pharmaceutical Co., Ltd. (“Shandong Buchang”), Chengdu Tianyin Pharmaceutical Co., Ltd. (“Chengdu Tianyin”), which is the Company’s indirect wholly-owned subsidiary, Grandway Group Holdings Ltd. (“Grandway Group”), which is the Company’s indirect wholly-owned subsidiary and Guoqing Jiang (“Jiang”), the Company’s Chairman and CEO, (each, a “Party”, and collectively “Parties) entered into a Cooperation Framework Agreement Regarding Chengdu Tianyin Pharmaceutical Co., Inc. (“Cooperation Framework Agreement”). Pursuant to the Cooperation Framework Agreement, the Parties agreed to establish a joint venture, Qionglai Tianyin Pharmaceutical Co., Ltd. (“Qionglai Tianyin”), with the total registered capital of RMB 200,000,000 (approximately US$32.3 million), with Chengdu Tianyin owning 95% and Shandong Buchang owning 5%. Shandong Buchang’s capital investment in Qionglai Tianyin took the form of RMB 10 million (approximately US$1.6 million), which was remitted on January 26, 2015, and Chengdu Tianyin’s capital investment in Qionglai Tianyin took the form of its buildings, land use rights, machineries and equipment of its plant located at Longquan and Qionglai, all of its patents and trademarks, and its portfolio drugs (the “Assets”). Pursuant to the Cooperation Framework Agreement, after the establishment of Qionglai Tianyin, Shandong Buchang or a third party approved by Shandong Buchang shall enter into an agreement with Qionglai Tianyin to appoint Shandong Buchang or the third party as the exclusive distributor within China regarding all medicines transferred excluding Mycophenolate Mofetil Capsules (CFDA No. H20080819), whose exclusive distributor remains to be Chengdu Tianyin. Following the execution of the Cooperation Framework Agreement, registration documents to establish Qionglai Tianyin was filed on November 3, 2014 and approved on January 27, 2015. Stock Pledge Agreement In November 2014, Chengdu Tianyin and Shandong Buchang entered into a Stock Pledge Agreement, pursuant to which the parties agreed that Chengdu Tianyin shall pledge its 95% stake of Qionglai Tianyin to Shandong Buchang as its down payment to Shandong Buchang and guarantee of performance of Chengdu Tianyin, Grandway Group and Dr. Guoqing Jiang under the Cooperation Framework Agreement. Share Transfer Agreements In November 2014, Shandong Buchang, Chengdu Tianyin, Qionglai Tianyin and Grandway Group entered into a Share Transfer Agreement Regarding Qionglai Tianyin Pharmaceutical Co., Ltd. (“2014 Share Transfer Agreement”). Pursuant to the 2014 Share Transfer Agreement, after Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin’s stock to Shandong Buchang at the total price of RMB 144,000,000 (approximately US$23.2 million) which shall be paid in installments. Shandong Buchang made the first installment of payment in the amount of RMB 50,000,000 (approximately US $8.1 million) on April 8, 2015. Chengdu Tianyin and Shandong Buchang are currently negotiating the timeline for the remaining payments. On April 28, 2015, Chengdu Tianyin completed the transfer of 72% of Qionglai Tianyin’s stock to Shandong Buchang. On May 13, 2015, the same parties entered into another Share Transfer Agreement Regarding Qionglai Tianyin Pharmaceutical Co., Ltd. (“2015 Share Transfer Agreement”), pursuant to which Chengdu Tianyin agreed to transfer another 3% of Qionglai Tianyin’s stock to Shandong Buchang at the total price of RMB 6,000,000 (approximately US$0.97 million). Pursuant to the 2015 Share Transfer Agreement, Chengdu Tianyin and Shandong Buchang own 20% and 80% of Qionglai Tianyin, respectively. Within 6 months of Shandong Buchang owning 80% of Qionglai Tianyin’s stock, if the key products produced by Qionglai Tianyin fail to comply with industry standards imposed by the state, Shandong Buchang is entitled to terminate this agreement. Within one month of the receipt of termination notice from Shandong Buchang, Chengdu Tianyin shall return the entire purchase price paid by Shandong Buchang. Should Chengdu Tianyin fail to return the purchase price to Shandong Buchang within one month, Shandong Buchang is entitled to an 8% annual interest of the outstanding payment. If there is any outstanding payment owed by Chengdu Tianyin to Shandong Buchang after three months from the receipt of termination notice, Shandong Buchang is entitled to a 0.08% daily interest of the outstanding payment. Product Distribution Agreement On May 28, 2015, Qionglai Tianyin and Sichuan Hengshuo Pharmaceutical Co., Ltd. (“Sichuan Hengshuo” or “HSP”), a wholly owned subsidiary of Chengdu Tianyin, entered into a Distribution Agreement Regarding Ginkgo Mihuan Oral Liquid and Other Products (“Product Distribution Agreement”), pursuant to which Sichuan Hengshuo shall be the distributor of Ginkgo Mihuan Oral Liquid (GMOL), Azithromycin Dispersible Tablets and Xuelian Chongcao Oral Liquid during the period from June 1, 2015 to May 30, 2018. Accounting Treatment As of March 31, 2015, Qionglai Tianyin has been included in the consolidated financial statements since the Company owned 95% of Qionglai Tianyin. After transferring 75% ownership of Qionglai Tianyin to Shandong Buchang, Chengdu Tianyin signed a sales agreement with Qionglai Tianyin to distribute three major products manufactured by Qionglai Tianyin, in addition to be the distributor of one major product per Cooperation Framework Agreement. Due to the continuing involvement and receiving cash flow from Qionglai Tianyin, the Company determined that the investment in 20% ownership of Qionglai Tianyin will be accounted for using equity method and assets which will be contributed to Qinglai Tianyin are classified to Assets Held for Sale on balance sheet at March 31, 2015.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	NOTE 11. RELATED-PARTY TRANSACTIONS On October 30, 2013, the Company obtained two loans from China CITIC Bank, for RMB 28 million (approximately $4.5 million) and RMB12 million (approximately $ 1.9 million), respectively, which matured on October 30, 2014. On October 30, 2014, the maturity dates of both loans were extended to January 30, 2015. Both loans were guaranteed by the Company’s CEO, Guoqing Jiang and third parties. (see note 6) On October 29, 2014, Chengdu Tianyin, the Company’s indirect wholly-owned subsidiary, Grandway Group, the Company’s indirect wholly-owned subsidiary, Guoqing Jiang, the Company’s Chairman and CEO, and Shandong Buchang entered into certain Cooperation Framework Agreement, pursuant to which a joint venture, Qionglai Tianyin, was established. (see note 10) Under the Cooperation Framework Agreement, Dr. Jiang agreed to undertake joint and several liabilities with Chengdu Tianyin and Grandway Group to Shandong Buchang and Qionglai Tianyin for breaches of the agreement.

Subsequent Event

Subsequent Event	9 Months Ended
	Mar. 31, 2015
Subsequent Event [Abstract]
SUBSEQUENT EVENT	NOTE 12 – SUBSEQUENT EVENT In preparing the accompanying unaudited consolidated financial statements, management has evaluated subsequent events for the period from March 31, 2015 through the date the financial statements were available to be issued. Based on the evaluation, there is no other significant event need to be disclosed, other than the following: On April 28, 2015, Chengdu Tianyin transferred 72% ownership of Qionglai Tianyin to Shandong Buchang for RMB 144 million (approximately $23 million). On May 13, 2015, Chengdu Tianyin transferred additional 3% ownership of Qionglai Tianyin to Shandong Buchang for RMB 6 million (approximately $1 million). See Note 10 for details.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Mar. 31, 2015
Inventory [Abstract]
Schedule of inventory	March 31, June 30, Raw materials $ 1,690,558 $ 690,355 Packaging supplies 927,330 387,599 Work in process 901,876 1,088,880 Finished goods 1,823,251 1,674,878 $ 5,343,015 $ 3,841,712

Short-Term Bank Loans (Tables)

Short-Term Bank Loans (Tables)	9 Months Ended
	Mar. 31, 2015
Short-Term Bank Loans [Abstract]
Schedule of short-term bank loans	March 31, June 30, 2015 2014 On October 30, 2013, the Company obtained a loan from China CITIC Bank, which matures on October 30, 2014. The interest is calculated using an annual fixed interest rate of 7.20% and paid monthly. The loan was guaranteed by the Company’s CEO, Guoqing Jiang and a third party. Loan principal of $1,611,400 (RMB 10 million) was repaid in October 2014, and the remaining loan principal of $2,935,800 was paid in full by April 29, 2015. $ 2,935,800 $ 4,547,200 On October 28, 2013, the Company obtained a loan with ability to borrow RMB 12 million (approximately $2 million) from China CITC Bank, which matures on October 30, 2014. The loan was guaranteed by the Company’s CEO and a third party. The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero. - - Total short-term bank loans $ 2,935,800 $ 4,547,200

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
Summary of comparison of income tax expense	Nine months ended 2015 2014 U.S. Statutory rate of 35% $ 12,636 $ 1,721,935 Tax rate difference between China and U.S. (1,506 ) (491,444 ) Change in valuation allowance 129,437 306,349 Tax paid for prior periods - 183,884 Effective tax $ 140,567 $ 1,720,724
Summary of provisions for income taxes	Nine months ended March 31, 2015 2014 Current $ 317,459 $ 1,720,724 Deferred (306,329 ) (306,349 ) Valuation allowance 129,437 306,349 Total $ 140,567 $ 1,720,724

Organization and Nature of Bu22

Organization and Nature of Business (Details) ¥ in Millions, $ in Millions	May. 13, 2015	Oct. 29, 2014	Nov. 30, 2014	May. 31, 2015USD ($)	May. 31, 2015CNY (¥)	Mar. 31, 2015
Chengdu Tianyin [Member]
Organization and nature of business [Textual]
Percentage of ownership	20.00%	95.00%	95.00%
Shandong Buchang Pharmaceutical Co Ltd [Member]
Organization and nature of business [Textual]
Percentage of ownership	80.00%	5.00%	5.00%			75.00%
Percentage of ownership transferred				75.00%	75.00%
Cash received from tranferred ownership				$ 26	¥ 160

Acquisition Of Non-Controllin23

Acquisition Of Non-Controlling Interest (Details) - JCM [Member] ¥ in Millions, $ in Millions	Oct. 08, 2014USD ($)	Oct. 08, 2014CNY (¥)	Sep. 30, 2014
Business Acquisition [Line Items]
Percentage of Non controlling interest in subsidiary company			13.00%
Payment to acquire subsidiary company	$ 2.4	¥ 15

Inventory (Details)

Inventory (Details) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Schedule of inventory
Raw materials	$ 1,690,558	$ 690,355
Packaging supplies	927,330	387,599
Work in process	901,876	1,088,880
Finished goods	1,823,251	1,674,878
Total	$ 5,343,015	$ 3,841,712

Prepaid Research and Developm25

Prepaid Research and Development Expense (Details) - 1 months ended Jul. 31, 2014 - KL [Member] ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Contract price for research and development	$ 10.5	¥ 65
Initial payment for research and development	$ 6.3	¥ 39

Short-Term Bank Loans (Details)

Short-Term Bank Loans (Details) - USD ($)	Mar. 31, 2015	Jun. 30, 2014
Schedule of short-term bank loans
Total short-term bank loans	$ 2,935,800	$ 4,547,200
China CITC Bank [Member] | Short-Term Bank Loan [Member]
Schedule of short-term bank loans
Total short-term bank loans	$ 2,935,800	$ 4,547,200
China CITC Bank [Member] | Short-Term Bank Loan One [Member]
Schedule of short-term bank loans
Total short-term bank loans

Short-Term Bank Loans (Details

Short-Term Bank Loans (Details Textual) - China CITC Bank [Member] ¥ in Millions	Oct. 30, 2013USD ($)	Oct. 30, 2013CNY (¥)	Oct. 28, 2013USD ($)	Oct. 28, 2013CNY (¥)
Short-Term Bank Loan [Member]
Short-Term Bank Loans (Textual)
Annual fixed interest rate of short-term bank loans	7.20%
Maturity date	Oct. 30, 2014	Oct. 30, 2014
Loan principal amount repaid	$ 1,611,400	¥ 10
Remaining loan principal	$ 2,935,800
Terms of the remaining loan	The remaining loan principal of $2,935,800 was paid in full by April 29, 2015.	The remaining loan principal of $2,935,800 was paid in full by April 29, 2015.
Short-Term Bank Loan One [Member]
Short-Term Bank Loans (Textual)
Maturity date			Oct. 30, 2014	Oct. 30, 2014
Loan principal amount repaid			$ 2,000,000	¥ 12
Terms of the remaining loan			The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.	The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Abstract]
U.S. Statutory rate			$ 12,636	$ 1,721,935
Tax rate difference between China and U.S.			(1,506)	(491,444)
Change in valuation allowance			$ 129,437	306,349
Tax paid for prior periods				183,884
Effective tax	$ (296,597)	$ 358,860	$ 140,567	$ 1,720,724

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Abstract]
Current			$ 317,459	$ 1,720,724
Deferred			(306,329)	(306,349)
Valuation allowance			129,437	306,349
Total	$ (296,597)	$ 358,860	$ 140,567	$ 1,720,724

Income Taxes (Details Textual)

Income Taxes (Details Textual)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Taxes (Textual)
Effective tax rates	35.00%	35.00%
Operating subsidiaries in China [Member]
Income Taxes (Textual)
Effective tax rates	25.00%

Concentrations (Details)

Concentrations (Details) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2015USD ($)Vendors	Mar. 31, 2014USD ($)Vendors	Mar. 31, 2015USD ($)Vendors	Mar. 31, 2014USD ($)Vendors
Risk of Concentrations and Credit Risk (Textual)
Number of vendors | Vendors	3	2	1	4
Vendor I [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors	60.00%	25.00%	48.00%	16.00%
Vendor II [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors	13.00%	19.00%		11.00%
Vendor III [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors	11.00%			10.00%
Vendor IV [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors				9.00%
Customer One [Member]
Risk of Concentrations and Credit Risk (Textual)
Concentration risk, percentage	10.00%	10.00%	17.00%	14.00%
Sales [Member] | GMOL [Member]
Risk of Concentrations and Credit Risk (Textual)
Concentration risk, percentage	76.00%	60.00%	62.00%	45.00%
Sales revenue, goods, net	$ 3	$ 5.2	$ 12.7	$ 16.6

Joint Venture (Details)

Joint Venture (Details) $ in Thousands	May. 28, 2015	May. 13, 2015USD ($)	May. 13, 2015CNY (¥)	Apr. 28, 2015	Oct. 29, 2014USD ($)	Nov. 30, 2014USD ($)	Nov. 30, 2014CNY (¥)	Mar. 31, 2015	Oct. 29, 2014CNY (¥)
Chengdu Tianyin [Member]
Tianyin Buchang Joint Venture [Textual]
Percentage of ownership		20.00%	20.00%		95.00%	95.00%	95.00%
Product distribution	Period from June 1, 2015 to May 30, 2018
Shandong Buchang Pharmaceutical Co Ltd [Member]
Tianyin Buchang Joint Venture [Textual]
Percentage of ownership		80.00%	80.00%		5.00%	5.00%	5.00%	75.00%
Sale of stock, description of transaction				Chengdu Tianyin completed the transfer of 72% of Qionglai Tianyin's stock to Shandong Buchang		Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin's stock to Shandong Buchang	Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin's stock to Shandong Buchang
Total price of stock		$ 970	¥ 6,000,000			$ 23,200	¥ 144,000,000
Installment payment						$ 8,100	¥ 50,000,000
Qionglai Tianyin [Member]
Tianyin Buchang Joint Venture [Textual]
Total registered capital					$ 32,300				¥ 200,000,000
Percentage of ownership								95.00%
Capital investment					$ 1,600				¥ 10,000,000
Sale of stock, description of transaction		Shandong Buchang is entitled to an 8% annual interest of the outstanding payment. If there is any outstanding payment owed by Chengdu Tianyin to Shandong Buchang after three months from the receipt of termination notice, Shandong Buchang is entitled to a 0.08% daily interest of the outstanding payment	Shandong Buchang is entitled to an 8% annual interest of the outstanding payment. If there is any outstanding payment owed by Chengdu Tianyin to Shandong Buchang after three months from the receipt of termination notice, Shandong Buchang is entitled to a 0.08% daily interest of the outstanding payment					Due to the continuing involvement and receiving cash flow from Qionglai Tianyin, the Company determined that the investment in 20% ownership of Qionglai Tianyin will be accounted for using equity method and assets which will be contributed to Qinglai Tianyin are classified to Assets Held for Sale

Related Party Transactions (Det

Related Party Transactions (Details) - Oct. 30, 2013 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Loan One [Member]
Related Party Transaction [Line Items]
Due to related parties	$ 4.5	¥ 28
Maturity date	Jan. 30, 2015
Loan Two [Member]
Related Party Transaction [Line Items]
Due to related parties	$ 1.9	¥ 12
Maturity date	Jan. 30, 2015

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event [Member] - Shandong Buchang Pharmaceutical Co Ltd [Member] ¥ in Millions, $ in Millions	May. 13, 2015USD ($)	May. 13, 2015CNY (¥)	Apr. 28, 2015USD ($)	Apr. 28, 2015CNY (¥)
Subsequent Event [Line Items]
Percentage of ownership	3.00%	3.00%	72.00%	72.00%
Fair value of ownership investmnent	$ 1	¥ 6	$ 23	¥ 144