Bohai Pharmaceuticals (BOPH) 10-Q 14 Nov 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Sep. 30, 2014
Document and Entity Information:	'
Entity Registrant Name	'Bohai Pharmaceuticals Group, Inc.
Document Type	'10-Q
Document Period End Date	30-Sep-14
Amendment Flag	'false
Entity Central Index Key	'0001443242
Current Fiscal Year End Date	'--06-30
Entity Common Stock, Shares Outstanding	19,249,285
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	'Q1

Bohai_Pharmaceuticals_Group_In

Bohai Pharmaceuticals Group, Inc. - Consolidated Balance Sheets (USD $)	Sep. 30, 2014		Jun. 30, 2014
Current Assets:	'		'
Cash	$27,138,153		$23,308,715
Restricted cash	22,375,805		12,623,467
Accounts receivable	37,689,405		41,647,165
Inventories	5,243,880		4,500,987
Prepaid expenses and other current assets	10,368,923		538,356
Total Current Assets	102,816,166		82,618,690
Non-current Assets	'		'
Property, plant and equipment, net	20,935,441		21,128,489
Prepayment for property, plant and equipment	475,858		275,334
Intangible assets- pharmaceutical formulas	14,168,772		14,164,630
Long term prepayments- land use right, net	37,421,564		37,618,340
Other intangible assets, net	22,618,970		23,738,108
Goodwill	5,224,186		5,222,658
Total Non-Current Assets	100,844,791		102,147,559
TOTAL ASSETS	203,660,957		184,766,249
Current liabilities:	'		'
Notes payable	19,497,295		9,745,795
Short-term loan, net	4,874,324		4,872,899
Accounts payable	6,610,794		6,107,200
Accrued expenses	12,414,987		15,718,565
Income taxes payable	5,314,188		3,085,929
Due to a related party	55,461		55,626
Total current liabilities	48,767,049		39,586,014
Non-current liabilities	'		'
Covertible notes, net	5,216,023		7,435,800
Deferred tax liability	8,117,555		8,143,826
Total non-current liabilities	13,333,578		15,579,626
TOTAL LIABILITIES	62,100,627		55,165,640
STOCKHOLDERS' EQUITY	'		'
Common Stock	19,250	[1],[2]	17,965	[1],[2]
Additional paid-in capital	27,390,356		24,822,499
Accumulated other comprehensive income	8,160,694		8,114,171
Retained earnings	105,990,030		96,645,974
Total stockholders' equity	141,560,330		129,600,609
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$203,660,957		$184,766,249
[1]	$0.001 par value, 150,000,000 shares authorized, 19,249,285 and 17,861,085 shares issued and outstanding as of September 30, 2014 and June 30, 2014, respectively
[2]	$0.001 par value, 150,000,000 shares authorized, 19,249,285 and 17,964,714 shares issued and outstanding as of September 30, 2014 and June 30, 2014, respectively

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Sep. 30, 2014	Jun. 30, 2014
Statement of Financial Position	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares Issued	19,249,285	17,964,714
Common Stock, Shares Outstanding	19,249,285	17,964,714

Bohai_Pharmaceuticals_Group_In1

Bohai Pharmaceuticals Group, Inc. - Consolidated Condensed Statements of Operations (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Statement	'	'
Net Revenues	$54,742,745	$50,889,060
Cost of revenues	15,533,884	11,707,654
Gross profit	39,208,861	39,181,406
Operating expenses:	'	'
Selling, general and administrative expenses	25,454,348	27,240,489
Depreciation and amortization	742,657	713,560
TOTAL OPERATING EXPENSES	26,197,005	27,954,049
Income from operations	13,011,856	11,227,357
Other income (expenses):	'	'
Interest income	28,373	2,790
Interest expenses	-437,267	-362,286
Other (expenses) income, net	28,108	-26,117
Income before provision for income taxes	12,631,070	10,841,744
Provision for income taxes	-3,287,014	-2,754,013
Net income	9,344,056	8,087,731
Comprehensive income:	'	'
Net income	9,344,056	8,087,731
Unrealized foreign currency translation gain (loss)	46,523	624,638
Comprehensive income	$9,390,579	$8,712,369
Net income per common share, basic	$0.50	$0.45
Net income per common share, diluted	$0.47	$0.38
Weighted average common shares outstanding, basic	18,662,544	17,861,085
Weighted average common shares outstanding, diluted	20,450,764	22,093,335

Bohai_Pharmaceuticals_Group_In2

Bohai Pharmaceuticals Group, Inc. - Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$9,344,056	$8,087,731
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	1,663,663	1,605,848
Loss on disposal of property, plant and equipment	'	9,897
Interest expenses related to convertible notes conversion	349,365	'
Deferred income taxes	-28,628	-4,118
Changes in operating assets and liabilities:	'	'
Accounts receivable, increase decrease	3,966,524	-2,044,145
Prepaid expenses and other current assets, increase decrease	-7,490,460	-188,996
Inventories, increase decrease	-740,939	-1,908,226
Accounts payable, increase decrease	501,378	826,784
Accrued expenses, increase decrease	-3,304,861	401,371
Income taxes payable, increase decrease	2,225,440	998,437
Net cash provided by operating activities	6,485,538	7,784,583
Cash flows used in investing activities:	'	'
Purchases of property, plant and equipment	-2,463,402	-27,127
Property, plant and equipment deposits	-200,271	-53,622
Cash paid for acquisition of business	'	-5,000,000
Net cash used in investing activities	-2,663,673	-5,080,749
Cash flows from financing activities:	'	'
Proceeds from short-term loan	4,870,130	4,865,864
Repayment of short-term loan	-4,870,130	'
Proceeds from notes payable	9,740,260	'
Borrowing from related party	'	-757
Repayment to related party	-179	'
Net cash provided by (used in) financing activities	-179	4,865,107
Effect of foreign currency translation on cash and cash equivalents	7,752	-75,139
Net increase (decrease) in cash and cash equivalents	3,829,438	7,493,802
Cash and cash equivalents at beginning of period	23,308,715	6,947,972
Cash and cash equivalents at end of period	27,138,153	14,441,774
Cash paid for interest	81,169	45,009
Cash paid for income taxes	1,204,378	1,759,694
Non-cash financing and investing activities:	'	'
Acquisition liability	'	'

Organization_and_Principal_Act

Organization and Principal Activities	3 Months Ended
	Sep. 30, 2014
Notes	'
Organization and Principal Activities	'
	1.       ORGANIZATION AND PRINCIPAL ACTIVITIES
	The Company’s Operations
	Bohai Pharmaceuticals Group, Inc. (“BPGI”) was incorporated under the laws of the State of Nevada on January 9, 2008 under the name of Link Resources, Inc. Prior to January 5, 2010; BPGI was a public “shell” company. BPGI became a public operating company on January 5, 2010 pursuant to a Share Exchange Transaction completed on January 5, 2010.
	BPGI is engaged in the production, manufacturing and distribution of herbal pharmaceuticals based on traditional Chinese medicine (“TCM”) in the People’s Republic of China (“China” or the “PRC”) through the following two operating subsidiaries:
	(i)YantaiBohai Pharmaceuticals Group Co., Ltd., (“Bohai”) a PRC Company and the Company’s original operating subsidiary. BPGI controls Bohai through a variable interest entity arrangement (“VIE”) described below; and
	(ii)YantaiTianzheng Pharmaceuticals Company, Ltd., a PRC company (“YantaiTianzheng”), which BPGI acquired effective July 1, 2011 through a newly formed PRC wholly-foreign owned enterprise subsidiary, YantaiNirui Pharmaceuticals, Ltd. (“WOFE II”).
	BPGI owns 100  % of Chance High International Limited, a British Virgin Islands company (“Chance High”). Chance High owns 100 % of the issued and outstanding shares of capital stock of a Chinese wholly-foreign owned enterprise known as YantaiShencaojishi Pharmaceuticals Co., Ltd. (the “WOFE”). On December 7, 2009 (prior to the date of the Share Exchange Transaction), the WOFE entered into a series of variable interest entity contractual agreements (the “VIE Agreements”) with Bohai and its three shareholders, including Mr. Hongwei Qu, the Company’s current Chairman and Chief Executive Officer (“Mr. Qu”). Mr. Qu currently owns 96.7% of the outstanding equity interests of Bohai and two other shareholders who collectively own the remaining 3.3% of Bohai.
	The VIE Agreements include (i) a Consulting Services Agreement, (ii) an Operating Agreement, and (iii) a Proxy Agreement, through which the WOFE has the right to advise, consult, manage and operate Bohai for an annual fee equal to all of Bohai’s yearly net profits after tax. Pursuant to these agreements, the WOFE indirectly owns but has100 % managerial and economic control of the business activities of Bohai including the right to appoint all executives and senior management and members of the board of directors of Bohai. Additionally, Bohai’s shareholders pledged their rights, titles and equity interest in Bohai as security for the WOFE to collect consulting and services fees provided to Bohai pursuant to an equity pledge agreement. In order to further reinforce the WOFE’s rights to control and operate Bohai, Bohai’s shareholders granted the WOFE an exclusive right and option to acquire all of their equity interests in Bohai through an option agreement. The VIE Agreements have perpetual terms unless otherwise determined by PRC law, and can (particularly in the case of the Consulting Services Agreement (which is the principal VIE Agreement) be terminated by the parties under certain circumstances, including material breach, the termination of Bohai’s business or a liquidation of Bohai. The WOFE (which is controlled indirectly by BPGI through Chance High) can also terminate the Consulting Services Agreement at will.
	BPGI, its wholly owned subsidiary Chance High, WOFE, WOFE II, Bohai and YantaiTianzheng are referred to herein collectively and as a consolidated basis as the “Company” or “we”, “us” or “our” or similar terminology. Mr. Qu currently serves the Company’s Chairman, Chief Executive Officer and President. As used herein, the term “Common Stock” means the common stock of BPGI, $0.001  par value per share.
	BPGI is headquartered and maintains its principal operations in the city of Yantai, Shandong Province, China, and conducts business operations exclusively in the PRC.
	On January 17, 2014, the Company merged WOFE with and into WOFE II. In connection with the merger, and in accordance with relevant PRC laws and regulations, all of WOFE’s rights relating to Bohai transferred to WOFE II.

Liquidity_and_Financial_Condit

Liquidity and Financial Condition	3 Months Ended
	Sep. 30, 2014
Notes	'
Liquidity and Financial Condition	'
	2.       LIQUIDITY AND FINANCIAL CONDITION
	The Company’s net income amounted to $9,344,056  for the three months ended September 30, 2014. The Company’s cash flows provided by operating activities amounted to $6,485,538 for the three months ended September 30, 2014. The Company had working capital of $54,049,117  as of September 30, 2014. The Company has historically financed its operations principally from cash flows generated from operating activities and external financing through short-term bank loans, convertible notes, and notes payable.
	On June 8, 2010, YantaiTianzheng signed an agreement with Yantai Huanghai Construction Co. to construct certain portions of a factory. The total contract price amounted to approximately $3,160,000   million (RMB 19,500,000   million). The construction is 100% completed and transferred into buildings as of June 30, 2014. The final cost is $4,820,000 million (RMB 29,680,000 million), as of September 30, 2014, $4,820,000 million (RMB 29,680,000 million) was fully paid.
	The Company is also required to repay the remaining $5,216,023 convertible notes balance, which pursuant to five amendments to the original notes, as of September 30, 2014, was due on an extended maturity date of April 5, 2016. The Company did not make payments toward principal during the three months ended September 30, 2014. $2,2197,777 of convertible notes principal and $349,365 of convertible notes interest were converted to common stock during the three months ended September 30, 2014.
	As described elsewhere herein, the Company has at times, been in temporary default of its obligation to repay the convertible notes at previously extended maturity dates. The Company cannot predict what the implications of the non-payment of the notes would be. The Company will continue to experience difficulty converting sufficient currency and will maintain an escrow account of restricted funds intended to secure the Note’s repayment. The non-payment of the notes could have a material adverse effect on the Company should the note holders pursue further action.
	Management believes, based on the Company’s historical ability to fund operations using internally generated cash flow, that the Company’s currently available cash and funds it expects to generate from operations and through potential short term loans financing from banks will enable it to operate the business and satisfy short term obligations through at least September 30, 2015. Notwithstanding, the Company still has substantial obligations as described herein and there is no assurance that unforeseen circumstances would not have a material adverse effect on the Company’s financial condition.
	The Company will require significant additional capital in order to fund these obligations and execute its longer term business plan. If the Company is unable to generate sufficient operating cash flows or raise additional capital, or encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity. Such measures could include, but not necessarily be limited to, curtailing the Company’s business development activities (as was done recently when the Company determined to streamline its operations to focus on the continued distribution of a smaller number of key products), suspending the pursuit of one or more elements of its business plan, and controlling overhead expenses. There is a material risk, and management cannot provide any assurances, that the Company will be able to raise additional capital if needed.
	On August 15, 2013, the Company obtained a short term loan from Yantai Rural Commercial Bank Ltd. (“RCB”) due on August 14, 2014 in the amount of $4,874,324 (RMB 30,000,000), which was guaranteed by a third party, Shandong Guangyuan Group Ltd. (“Guangyuan”) and the principal shareholder of the Company, Hongwei Qu. Guangyuan is an unrelated third party and has no business relationship with the Company (See Note 13).  As of September 30, 2014, this loan has been paid back.
	On September 02, 2014, the Company obtained a short term loan from Yantai Rural Commercial Bank Ltd.  (“RCB”) due on September 01, 2015 in the amount of $4,874,324 (RMB 30,000,000), which was guaranteed by a third party, Shandong Guangyuan Group Ltd. (“Guangyuan”) and the principal shareholder of the Company, Hongwei Qu. Guangyuan is an unrelated third party and has no business relationship with the Company (See Note 13). Except for the loan from RCB, the Company has not received any commitments for new financing, and cannot provide any assurance that new financing will be available to the Company on acceptable terms, if at all. The failure of the Company to fund its obligations when needed would have a material adverse effect on its business and results of operations.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2014
Notes	'
Summary of Significant Accounting Policies	'
	3.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the accounts of BPGI, its wholly-owned subsidiary Chance High, WOFE II, YantaiTianzheng and Bohai. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The Company, in determining whether it is required to consolidate investee businesses, considers both the voting and variable interest models of consolidation as required under applicable GAAP. The Company adopted FASB Accounting Standards Codification (“ASC”) 810- 10 -15-14 and also ASC 810- 10 -05-8, which requires that a VIE be consolidated if that company is entitled to receive a majority of the VIE’s residual returns and has direct ability to make decisions on all operating activities of the VIE. The Company controls Bohai through the VIE Agreements described in Note 1, under the following series of agreements entered into on December 7, 2009.
	Under the Operating Agreement entered into between WOFE and Bohai, the WOFE has the direct ability to make decisions on all the operating activities and exercise all voting rights of Bohai. Under the Consulting Services Agreement entered into between WOFE and Bohai, Bohai agreed to pay all of its net income to WOFE quarterly as a consulting fee. Accordingly, WOFE has the right to receive the expected residual returns of Bohai. As such, the Company is the primary beneficiary of and maintains controlling managerial and financial interest in, Bohai in accordance with ASC 810-10-15-14. Accordingly, Bohai’s financial position and results of operations are consolidated with those of the Company for all periods presented.
	We initially measured the assets, liabilities, and non-controlling interests of Bohai at their carrying amounts as of the date of the Share Exchange. We have subsequently accounted for the assets, liabilities, and non-controlling interest of Bohai as if it was consolidated based on voting interests. The usual accounting rules for which the VIE operates are applied as they would to a consolidated subsidiary as follows:
	Carrying amounts of the VIE are consolidated into the financial statements of the Company as the primary beneficiary, or Primary Beneficiary (“PB”); and
	Inter-company transactions and balances, such as revenues and costs, receivables and payables between or among the PB and the VIE(s) are eliminated in their entirety.
	The carrying amount and classification of Bohai’s assets and liabilities included in the consolidated balance sheets are as follows:
		30-Sep-14	30-Jun-14
	Total current assets*	$     93,297,653	$            83,930,195
	Total assets*	163,516,875	154,570,385
	Total current liabilities**	29,562,990	28,442,197
	Total liabilities**	$            33,613,636	$             32,438,616
	*           Includes intercompany accounts in the amounts of $40,160,116 and $37,511,591 in current assets as of September 30, 2014 and June 30, 2014, respectively, which were eliminated in consolidation.
	**         Includes intercompany accounts in the amounts of $9,429,543 and $9,426,786 in current liabilities as of September 30, 2014 and June 30, 2014, respectively, which were eliminated in consolidation.
	Business Combinations
	The Company uses the acquisition method of accounting for business combinations which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective fair values. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are charged to expense as incurred. The operating results of acquired business are reflected in the acquirer’s consolidated financial statements and results of operations after the date of the acquisition.
	Basis of Presentation
	The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended September30, 2014 are not necessarily indicative of the operating results for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended June 30, 2014, filed on October 14, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q.
	Business Segments
	The Company’s operates its business through a single reporting segment.
	Use of Estimates
	The preparation of the condensed consolidated financial statements in conformity with GAAP 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those results.
	Significant estimates and assumptions include allocating purchase consideration issued in business combinations, valuing equity securities and derivative financial instruments issued in financing transactions and in share-based payment arrangements, accounts receivable reserves, inventory reserves, and evaluating the carrying amounts and useful lives of intangible assets. Certain estimates, including accounts receivable and inventory reserves and the carrying amounts of intangible assets (including present value of future cash flow estimates for the Company’s pharmaceutical formulas) could be affected by external conditions including those unique to the Company’s industry and general economic conditions. It is reasonably possible that these external factors could have an effect on management’s estimates that could cause actual results to differ from management’s estimates.
	Company management re-evaluates all of the accounting estimates at least quarterly based on these conditions and records adjustments, when necessary.
	Cash and Cash Equivalents
	We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. We maintain bank accounts in the PRC and Hongkong. We also have restricted cash accounts in the United States and the PRC that include funds designated for interest payments due to convertible note holders and for use in investor relations programs pursuant to a securities purchase agreement.
	Restricted Cash
	Escrow account balances amounted to $22,375,805 and $12,623,467 as of September 30, 2014 and June 30, 2014, respectively.
	The Company is required by its Note holders to maintain deposits in escrow accounts to fund the principal and interest payments under the Convertible Notes obligation. As of September 30, 2014 and June 30, 2014, there was $12,627,158 and $7,750,568 of cash restricted for this purpose.
	The Company has certain outstanding notes payable in the amount of $19,497,295 and $9,745,795 as of September 30, 2014 and June 30, 2014, respectively, and it is required to maintain a portion of these outstanding draft amounts in its bank as restricted cash. As of September 30, 2014 and June 30, 2014, there was $9,748,647 and $4,872,899 cash restricted for this purpose.
	Accounts Receivable
	Accounts receivable consists of amounts due from customers. The Company’s credit terms generally range from 90 to 180 days. The Company’s policy with respect to accounts receivable reserves is to establish an allowance for doubtful accounts based on management’s assessment of known requirements, aging of receivables, payment history, specific customer’s current credit worthiness, and the economic environment. The Company has a significantly low history of credit losses and no historical pattern of making any price or collection concessions with respect to its accounts receivable balances. Accordingly, an allowance for doubtful accounts is not considered necessary based on management’s assessment.
	Inventories
	Inventories are valued at the lower of cost, determined using the weighted average method, or market. Finished goods inventories include the costs of raw materials, direct labor and overhead associated with the manufacturing process. In assessing the ultimate realization of inventories, management makes judgments as to future demand requirements compared to current or committed inventory levels. Our reserve requirements generally increase/decrease due to management’s projected demand requirements, market conditions and product life cycle changes. As of September 30, 2014 and June 30, 2014, management does not believe that any inventory reserves are necessary.
	Property, Plant and Equipment
	Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets that range from 5 to 10 years for office equipment, machinery, and vehicles and 30 to 40 years for buildings. The cost of repairs and maintenance is charged to expense as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. We examine the possibility of impairment in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.
	Intangible Asset – Pharmaceutical Formulas
	The Company has purchased pharmaceutical formulas that were approved by the State Food and Drug Administration of China (“SFDA”). These formulas can be renewed every 5 years without limitation for a minimum fee and are subject to certain protections under PRC drug regulations for an indefinite period of time. These regulations mitigate competition and the ability of other suppliers to replicate the Company’s products or produce comparable substitutes. These intangible assets are measured initially at cost not subject to amortization and are tested for impairment annually or in interim reporting periods if events or changes in circumstances indicate that the carrying amounts of these intangible assets might not be recoverable.
	Common Stock Purchase Warrants and Other Derivative Financial Instruments
	The Company accounts for the issuance of common stock purchase warrants issued as free standing financial instruments in accordance with the applicable provisions ASC 810 “Derivatives and Hedging Activities.” Based on this guidance, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The common stock purchase warrants have expired as of June 30, 2013 and we did not issue any warrants during the three months ended September 30, 2014.
	Fair Value Measurements and Fair Value of Financial Instruments
	We adopted the guidance of ASC 820 for fair value measurements, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
	Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
	Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.
	Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.
	The carrying amounts reported in the balance sheets for cash, accounts receivable, other receivables, short-term borrowings, accounts payable and accrued expenses, customer advances, and amounts due from related parties approximate their fair market value based on the short-term maturity of these instruments.
	ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. We use Level 3 inputs to value the Company’s derivative liabilities.
	The following table reflects gains and losses for the three months ended September 30, 2014 and year ended June 30, 2014 for all financial assets and liabilities categorized as Level 3.
	Liabilities:
	Balance of warrant liabilities as of June 30, 2013	$ -
	Change in the fair value of warrant liabilities	-
	Balance of warrant liabilities as of June 30, 2014	-
	Change in the fair value of warrant liabilities	-
	Balance of warrant liabilities as of September 30, 2014	$ -
	Estimating the fair value of derivative financial instruments require the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. The assumptions used to value the Company’s derivatives, which had a direct effect on the fair values. In addition, valuation techniques are sensitive to changes in the trading market price of the our Common Stock and its estimated volatility interest rate changes and other variables or market conditions not within the Company’s control that can significantly affect management’s estimates of fair value and changes in fair value. Because derivative financial instruments are initially and subsequently carried at fair value, the Company’s net income may include significant charges or credits as these estimates and assumptions change.
	The warrants expired on January 5, 2013. At the expiration time, the portion of this warrant not exercised prior thereto shall be and become void and of no value and this warrant shall be terminated and shall no longer be outstanding.
	Foreign Currency Translation
	The Company’s reporting currency is the U.S. dollar. The functional currency of the Company’s operating business based in the PRC is the RMB. For the Company’s subsidiaries and affiliates whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate in effect as of the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into U.S. dollars are included in comprehensive income.
	Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of the Company’s revenue transactions are transacted in the functional currency. Transaction gains or losses have not had, and are not expected to have a material effect on the Company’s results of operations.
	Period end exchange rates used to translate assets and liabilities and average exchange rates used to translate results of operations in each of the reporting periods are as follows:
		The three months ended September 30, 2014	The three months ended September 30, 2013
Period end US$: RMB exchange rate	6.1547	6.1439
Average periodic US$: RMB exchange rate	6.16	6.1654
The RMB is not freely convertible into any other currencies. In addition, all foreign exchange transactions in the PRC must be conducted through authorized institutions. Accordingly, management cannot provide any assurance that the RMB underlying the condensed consolidated financial statement amounts could have been, or could be, converted into US dollars at the exchange rates used to translate the functional currency into the reporting currency.
Revenue Recognition
Revenue represents the invoiced value of goods sold recognized upon the delivery of goods to distributors. Pursuant to the guidance of ASC Topic 605 and ASC Topic 36, revenue is recognized when all of the following criteria are met:
-Persuasive evidence of an arrangement exists;
-Delivery has occurred or services have been rendered;
-The seller’s price to the buyer is fixed or determinable; and
-Collectability is reasonably assured.
Cost of Revenue
Cost of revenue consists primarily of raw material costs, labor cost, overhead costs associated with the manufacturing process and related expenses which are directly attributable to our revenues.
Stock-based Compensation
Stock based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the employee or director’s requisite service period (presumptively, the vesting period). The FASB Accounting Standards Codification also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.
Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated based on the then current fair value, at each subsequent reporting date.
Research and Development Costs
Research and development costs are charged to expense as incurred and included in operating expenses. We have only one full-time employee who is engaged in research and development, so the Company is mainly dependent on third-parties to perform the limited amount of research and development that the Company undertakes (see Note 15). On March 1, 2013, the Company entered into a series of contracts with Binzhou Medical College to establish an institute named Bohai Pharmaceutical Institute in the following 5 years. On May 31, 2013, these two parties entered into two contracts agreeing on performing researches on two pharmaceutical products, namely Lung Nourishing Cream and Tongbi Capsules, in the following 17 months, respectively. These three contracts amount to $243,380  (RMB 1,500,000), that has been fully paid as of June 30, 2014. Research and development costs amounted to approximately $2,435 and $39,047 for the three months ended September 30, 2014 and 2013, respectively.
Shipping costs
Shipping costs are included in selling, general and administrative expense. Shipping costs amounted to $462,770 and $272,203 for the three months ended September 30, 2014 and 2013, respectively.
Advertising
Advertising and promotion costs are charged to expense as incurred. Advertising expenses included in selling, general and administrative expenses amounted to $763 and $101,280 for the three months ended September 30, 2014 and 2013, respectively.
Income Taxes
We are governed by the PRC’s Income Tax Laws and the Internal Revenue Code of the United States. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement and income tax base of assets and liabilities and operating loss and tax credit carry-forwards. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the benefit of such tax assets will not be realized in future periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the periods that include the enactment date.
We account for certain tax positions based upon authoritative guidance that prescribes a recognition threshold and measurement processes for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also provides direction on recognition, classification, interest and penalties, accounting in interim periods and related disclosure.
Our policy is to classify assessments, if any, for tax related to interest as interest expense and penalties as general and administrative expense.
Earnings per share
We report earnings per share in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Common equivalent shares are excluded from the computation of diluted shares in periods for which they have an anti-dilutive effect. Diluted shares underlying stock options and common stock purchase warrants are included in the determination of diluted earnings per share using the treasury stock method. Diluted shares underlying convertible debt obligations are included in the determination of diluted loss per share using the “if converted” method (Note 16).
Recent Accounting Pronouncements
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, “Revenue from contracts with Customers (Topic 606)”. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.
In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”).
In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in Topic 450, Contingencies.
When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):
a.     Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans)
b.     Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations
c.     Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern.
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:
a.     Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern
b.     Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations
c.     Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.
The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.
Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2014
Notes	'
Inventories	'
	4.       INVENTORIES
	Inventories consist of the following:
		30-Sep-14	June 30, 2014
	Raw materials	$                 2,451,701	$              2,231,226
	Work in progress	1,334,841	1,334,451
	Finished goods	1,457,338	935,310
	Total inventories	$                5,243,880	$             4,500,987

Property_Plant_and_Equipment_N

Property, Plant and Equipment, Net	3 Months Ended
	Sep. 30, 2014
Notes	'
Property, Plant and Equipment, Net	'
	5.       PROPERTY, PLANT AND EQUIPMENT, NET
	Property, plant and equipment consist of the following:
		30-Sep-14	June 30, 2014
	Buildings	$ 14,355,280	$   13,913,970
	Plant equipment	10,941,329	11,309,330
	Office equipment	433,010	438,850
	Motor vehicles	355,777	283,648
	Total	26,085,396	25,945,798
	Less: accumulated depreciation	-5,155,918	-4,823,270
	Construction in progress	5,963	5,961
	Property, plant and equipment, net	$20,935,441	$  21,128,489
	Depreciation expense for property, plant and equipment for the three months ended September 30, 2014 and 2013 amounted to $330,953 and $276,748, respectively.
	On June 8, 2010, YantaiTianzheng signed an agreement with Yantai Huanghai Construction Co. to construct certain portions of a factory. The total contract price amounted to approximately $3,160,000 million (RMB 19,500,000 million). The construction is 100% completed and transferred into buildings as of September 30, 2014. The final cost is $4.82 million (RMB 29.68 million), as of September 30, 2014, $4.82 million (RMB 29.68 million) was fully paid.

Indefinite_Lived_Intangible_As

Indefinite Lived Intangible Assets - Pharmaceutical Formulas	3 Months Ended
	Sep. 30, 2014
Notes	'
Indefinite Lived Intangible Assets - Pharmaceutical Formulas	'
	6.       INDEFINITE LIVED INTANGIBLE ASSETS – PHARMACEUTICAL FORMULAS
	The Company purchased, and currently owns exclusive rights to, a series of pharmaceutical formulas that were approved by the SFDA. This asset includes 12 formulas that are included in the Chinese government’s Essential Drug List (“EDL”) and 27 medicines included in the National Drug Reimbursement List (“NDRL”). The intellectual property underlying these formulas can be renewed every 5 years without limitation for a minimum fee and are subject to certain protections under PRC drug regulations for an indefinite period of time. These regulations mitigate competition and the ability of other suppliers to replicate the Company’s products or produce comparable substitutes. These intangible assets are measured initially at cost not subject to amortization and are tested for impairment annually or in interim reporting periods if events or changes in circumstances indicate that the carrying amounts of these intangible assets might not be recoverable.
	Pharmaceutical formulas with indefinite lives consist of the following:
		30-Sep-14	June 30, 2014
	Pharmaceutical formulas, without amortization, net of impairment	$   14,168,772	$  14,164,630

Intangible_Assets_Land_Use_Rig

Intangible Assets - Land Use Rights, Net	3 Months Ended
	Sep. 30, 2014
Notes	'
Intangible Assets - Land Use Rights, Net	'
	7.       INTANGIBLE ASSETS - LAND USE RIGHTS, NET
			30-Sep-14	June 30, 2014
	Land use rights, at cost		$       40,262,785	$       40,251,014
	Less: Accumulated amortization		-2,841,221	-2,632,674
	Intangible assets – land use rights, net		$       37,421,564	$       37,618,340
	The Company acquired a new land use right for 266,668 square meters on November 5, 2012. The Company was granted the right to use the land for a period of 50 years at a cost of approximately $19.44 million (RMB 120,000,000). As of June 30, 2014, the Company had made full payments of $19.44 million (RMB 120,000,000) through four installments:
	Installment	Payment date	Amount in USD
	First	11/30/12	$3,235,879
	Second	12/31/12	3,235,879
	Third	6/30/13	6,471,759
	Fourth	12/31/13	6,497,199
	Total		$19,440,716
	There is no private ownership of land in the PRC. All land is owned by the government, which grants land use rights for specified periods of time. Amortization expense for land use rights amounted to $207,599 and $206,914 for the three months ended September 30, 2014 and 2013, respectively.
	Amortization is calculated over a period of 30 - 50 years.
	Amortization of land use rights for fiscal years ending subsequent to September 30, 2014 is as follows:
			Amortization
	1 year after September 30, 2014		$                                                831,110
	2 years after September 30, 2014		831,110
	3 years after September 30, 2014		831,110
	4 years after September 30, 2014		831,110
	5 years after September 30, 2014		831,110
	Thereafter		33,266,014
	Total		$                                          37,421,564

Other_Intangible_Assets_Net

Other Intangible Assets, Net	3 Months Ended
	Sep. 30, 2014
Notes	'
Other Intangible Assets, Net	'
	8.       OTHER INTANGIBLE ASSETS, NET
	Other Intangible assets, net include customer relationships and certain prescription drug product formulas. The Company acquired these assets in its business combination with YantaiTianzheng. Customer relationships are amortized on a straight line basis over periods of 5 and 8 years. Pharmaceutical formulas including those retained as defensive assets are amortized on a straight t line basis over a period of 8 years.
	Approximately, $10.37 million for the carrying amount of certain other product formulas that the Company will hold as defensive assets have been reclassified from indefinite life drug formulas. According to the Company’s years of industrial experience and R&D knowledge, to get a new drug formula approved from scratch usually take at least 8 years, so the Company is amortizing the pharmaceutical formulas as defensive assets over 8 years.
	Other intangible assets at September 30, 2014 consist of the following:
		Customer Relationships		Yantai Tianzheng Drug Formulas	Defensive Drug Formulas	Total
	Cost	$  14,861,163		$                              10,384,096	$                10,375,059	$     35,620,318
	Accumulated Amortization	(6,148,634)		(4,258,949)	(2,593,765)	(13,001,348)
	Net carrying amount	$     8,712,529		$                                 6,125,147	$                  7,781,294	$     22,618,970
	Other intangible assets at June 30, 2014 consist of the following:
		Customer Relationships		Yantai Tianzheng Drug Formulas	Defensive Drug Formulas	Total
	Cost	$  14,856,818		$                              10,381,061	$                10,372,025	$     35,609,904
	Accumulated Amortization	(5,674,003)		(3,928,913)	(2,268,880)	(11,871,796)
	Net carrying amount	$     9,182,815		$                                 6,452,148	$                  8,103,145	$     23,738,108
	Amortization expense for customer relationships amounted to $472,565  and $472,151 for the three months ended September 30, 2014 and 2013, respectively.
	Amortization expense for YTP drug formulas amounted to $328,605 and $326,377 for the three months ended September 30, 2014 and 2013, respectively.
	Amortization expense for defensive drug formulas amounted to $323,942  and $323,658 for the three months ended September 30, 2014 and 2013, respectively. Amortization expenses are recorded in general and administrative expenses.
	Amortization expense for fiscal years ending subsequent to September 30, 2014 is as follows:
			Amortization
	1 year after September 30, 2014		$                                                    4,504,323
	2 years after September 30, 2014		4,504,323
	3 year3 after September 30, 2014		4,504,323
	4 years after September 30, 2014		4,504,323
	5 years after September 30, 2014		3,304,797
	Thereafter		1,296,881
	Total		$                                                  22,618,970

Goodwill

Goodwill	3 Months Ended
	Sep. 30, 2014
Notes	'
Goodwill	'
	9.       GOODWILL
	On August 8, 2011, the Company acquired 100% of Yantai Tianzheng’s equity interests for total purchase consideration of US$35,000,000 (paid in its RMB equivalent). The Company accounted for its acquisition of YantaiTianzheng using the acquisition method of accounting. The fair value of the purchase consideration issued to the sellers of YantaiTianzheng was allocated to fair value of the net tangible assets acquired, with the resulting excess allocated to separately identifiable intangibles including customer relationships that have a finite life, pharmaceutical formulas that have an indefinite life and the remainder recorded as goodwill. Goodwill recognized from the transactions mainly represented the expected operational synergies upon acquisition of the subsidiary and intangibles not qualifying for separate recognition. Goodwill is nondeductible for income tax purpose in the tax jurisdiction of the acquisition transactions incurred. Goodwill amounted $5,224,186 (RMB 32,153,295) and $5,222,658  (RMB 32,153,295) as of September 30, 2014 and June 30, 2014, respectively. Goodwill is measured initially at cost not subject to amortization and are tested for impairment annually or in interim reporting periods if events or changes in circumstances indicate that the carrying amounts of these intangible assets might not be recoverable. The Company has decided there is no impairment for the three months ended September 30, 2014 and 2013.

Accrued_Expenses

Accrued Expenses	3 Months Ended
	Sep. 30, 2014
Notes	'
Accrued Expenses	'
	10.    ACCRUED EXPENSES
	Accrued expense consists of the following:
		30-Sep-14	June 30, 2014
	Sales representatives commission and expenses	$         4,759,455	$         5,879,162
	Other payable for PPE	1,270,165	3,889,955
	Other accrued expense	784,001	741,129
	Other taxes payable	2,747,643	2,380,031
	Accrued Interest expenses	2,372,968	2,372,625
	Compensation and related cost	480,755	455,663
	Total	$      12,414,987	$      15,718,565

Due_To_Related_Party

Due To Related Party	3 Months Ended
	Sep. 30, 2014
Notes	'
Due To Related Party	'
	11.    DUE TO RELATED PARTY
	Due to related party amounted to $55,461 and $55,626 as of September 30, 2014 and June 30, 2014, respectively. It represents accrued out of pocket expenses of Mr. Hongwei Qu, Chief executive officer of the Company.

Notes_Payable

Notes Payable	3 Months Ended
	Sep. 30, 2014
Notes	'
Notes Payable	'
	12.    NOTES PAYABLE
	The Company borrowed from Weihai City Commercial Bank (“City Bank”) under the facility was obtained by YantaiTianzheng. The latest outstanding amount of $9,748,647 (RMB 60,000,000) was borrowed on April 22, 2014 and has a term of a period of six months and has a bank charge fee of 0.05%. The latest outstanding amount of $9,748,648 (RMB 60,000,000) was borrowed on September 19, 2014 and has a term of a period of six months and has a bank charge fee of 0.05%. As of September 30, 2014 and June 30, 2014, the outstanding aggregate amount was $19,497,295 (RMB 120,000,000) and $9,745,797  (RMB 60,000,000), respectively. The Company was required to maintain 50% of the notes amounts, or $9,748,647 (RMB 60,000,000) and $4,872,899 (RMB 30,000,000) as guaranteed funds, which was classified as restricted cash as of September 30, 2014 and June 30, 2014, respectively.
	YantaiTianzheng entered into this credit facility following its execution of third party guaranty arrangements between YantaiTianzheng, City Bank and Laishan Public Assets Management LLP (“Laishan”) and between YantaiTianzheng, City Bank, and Bohai in April 2013. Under the terms of the Guaranty, Laishan and Bohai each has agreed to act as guarantor of up to$4,872,899 (RMB 30,000,000) of any credit extended by City Bank to YantaiTianzheng at any time during the period from April 25, 2013 through April 25, 2015. Laishan is an unrelated third party and has no business relationship with the Company. As a state-owned enterprise, Laishan provides the guarantee to support the development of Bohai, which is a prominent emerging company in the area.

Shortterm_Loan

Short-term Loan	3 Months Ended
	Sep. 30, 2014
Notes	'
Short-term Loan	'
	13.    SHORT-TERM LOAN
	On August 15, 2013, the Company entered into a short term bank loan agreement with RCB. As of September 30, 2014, the loan amounted to $4,874,324 (RMB 30,000,000) with an interest rate of 9% per annum, which is due on August 14, 2014. The Company entered into this credit facility following its execution of third party guaranty arrangements among the Company, RCB, Guangyuan, and the principal shareholder of the Company, Hongwei Qu, on August 15, 2013. Guangyuan is an unrelated third party and has no business relationship with the Company. Guangyuan is a construction company and expected to be a potential constructor for Bohai’s construction on the land purchased in November 2012. As of September 30, 2014, this loan has been paid back.
	On September 02, 2014, the Company entered into a short term bank loan agreement with RCB. As of September 30, 2014, the loan amounted to $4,874,324 (RMB 30,000,000) with an interest rate of 6% per annum, which is due on September 01, 2015. The Company entered into this credit facility following its execution of third party guaranty arrangements among the Company, RCB, Guangyuan, and the principal shareholder of the Company, Hongwei Qu, on September 02, 2014. Guangyuan is an unrelated third party and has no business relationship with the Company. Guangyuan is a construction company and expected to be a potential constructor for Bohai’s construction on the land purchased in November 2012.

Convertible_Promissory_Notes_i

Convertible Promissory Notes in Default and Due On Demand	3 Months Ended
	Sep. 30, 2014
Notes	'
Convertible Promissory Notes in Default and Due On Demand	'
	14.    CONVERTIBLE PROMISSORY NOTES IN DEFAULT AND DUE ON DEMAND
	Convertible Notes
	On January 5, 2010, pursuant to a Securities Purchase Agreement (the “Securities Purchase Agreement”) with 128 accredited investors (the “Investors”), BPGI sold 6,000,000  units for aggregate gross proceeds of $12,000,000, each unit consisting of an 8 % senior convertible promissory note in the principal amount of $2 and one Common Stock purchase warrant (collectively, the “Investor Warrants”). By agreement with the Investors, each investor received: (i) a single Note representing the aggregate number of Notes purchased by them as part of the units (each, a “Note” and collectively, the “Notes”) and (ii) a single Investor Warrant exercisable at $2.40 per share subject to certain anti-dilution provisions. The majority of this debt is guaranteed by third-parties and our CEO, Mr. Qu, and a portion is secured by our inventories and fixed assets.
	The Notes originally bore interest at 8% per annum, payable quarterly in arrears on the last day of each fiscal quarter of the Company. Principal was originally due on January 5, 2012. Each Note, plus all accrued but unpaid interest thereon, is convertible, in whole but not in part, at any time at the option of the holder, into shares of Common Stock at a conversion price of $2.00 per share, subject to adjustments for certain anti-dilution provisions.
	The Convertible Notes were initially recorded at a discounted carrying amount of zero as a result of having allocated a portion of the proceeds to (i) the fair value of the warrants, which were recorded as liabilities stated at fair value, and (ii) a beneficial conversion feature that was not bifurcated as a free standing derivative at the time of issuance or at subsequent reporting dates based on periodic classification assessments. Accretion of the note discount amounted to $0 and $0 for the three months ended September 30, 2014 and 2013, respectively. Accretion of the discount was recorded as a component of interest expense in the accompanying statements of income and comprehensive income. Contractual interest expense amounted to $0 and $253,935 for the three months ended September 30, 2014 and 2013, respectively.
	The Notes contain certain events of default, including non-payment of interest or principal when due, bankruptcy, failure to maintain a listing of the Common Stock or to make required filings on a timely basis. No premium is payable by us if an event of default occurs. However, upon an Event of Default, and provided no more than 50% of the aggregate face amount of the Notes have been converted, the Investors holding Notes have the right to receive a portion, based on their pro-rata participation in the transaction, of 1,000,000 shares of our Common Stock that have been placed in escrow by our principal shareholder. The shares in escrow will be returned to our principal shareholder when 50% of the aggregate face amount of the Notes has been converted or, if later, when the Notes are repaid.
	On December 31, 2011, the Company’s Chinese operating subsidiary determined it was unable to convert a sufficient amount of RMB needed to repay the notes on their original maturity date of January 5, 2012. As a result, the Company entered into a series of amendments to the Notes with Euro Pacific as representative of the Investors to extend to the maturity date and increase the interest rate on the Notes.
	On April 21, 2014, the Company and Euro Pacific, acting as representative of the holders of certain 8% convertible notes, entered into a fifth amendment to the convertible notes (the “Fifth Amendment”) to extend the maturity date of the convertible notes to April 5, 2016.The Fifth Amendment provides, among other things, that (i) the interest of the convertible notes will cease to accrue as of the date of the Fifth Amendment (the “Effective Date”), (ii) any accrued and unpaid interest as of the Effective Date in an aggregate amount of up to $1,000,000 (unless otherwise converted to the Company’s common stock pursuant to Section 5 of the Notes) will be paid by cash as soon as practicable after the date of consummation of a financing by the Company conducted in the U.S. with net proceeds to the Company of at least $5 million, and (iii) in the event that the volume weighted average public trading price (as reported by Bloomberg Financial Markets) of the Company’s common stock exceeds $2.50 for 20 consecutive trading days (the “Trading Period”) with a daily average volume of 30,000 shares over such Trading Period, the Company will have the right, upon notice to the Investor Representative, to require mandatory conversion of the entire outstanding principal amount (including any accrued but unpaid interest) due thereunder into shares of common stock at a conversion price of $2.00 per share.
	In October 2013, the Company paid $400,000 towards the principal. In March 2014, the Company paid $446,450 towards the principal. In May and June 2014, the Company issued 103,629 shares common stock and reduced $182,250 towards the principal and $25,000 toward the accrued interest. In July and August 2014, the Company issued 1,284,571 shares common stock and reduced $2,219,777 towards the principal and $349,365 toward the accrued interest. The outstanding balance of the Notes amounted to $5,216,025  and $7,435,800  as of September 30, 2014 and June 30, 2014, respectively.
	The Company has been in temporary default of this obligation at the previously extended maturity dates. Should the Company be unable to repay the notes in time and in the absence of a further extension of the maturity date, this circumstance would constitute an event of default under the terms of loan agreement. The Company cannot predict what the implications of the non-payment of the loan would be other than it would continue to experience difficulty converting sufficiency currency and will maintain an escrow account of restricted funds intended to secure their repayment. The non-payment of the notes could have a material adverse effect on the Company should the note holders pursue further action.
	On June 27, 2012, Euro Pacific also agreed to release us from certain restrictions on our ability to incur debt, to incur liens or to make capital expenditures as stipulated in the note agreement. The purpose of the Third Amendment is to provide us with enhanced flexibility to seek potential sources of financing.
	The Company has paid $2,831,950 principle in total and converted into common stock $1,388,200 in total. The payment dates and amounts are as follows:
	Payment date	Amount
	14-May-12	$                                                 314,000
	28-Jun-12	100,000
	3-Jul-12	631,000
	29-Nov-12	940,500
	9-Oct-13	100,000
	29-Oct-13	300,000
	6-Mar-14	446,450
		$                                              2,831,950
	As of September 30, 2014 and June 30, 2014, the Company’s principal shareholder, Mr. Qu, is obligated to deliver 1,000,000 shares of Common Stock to the Investors if a default occurs.

Commitments_Contingencies_and_

Commitments, Contingencies and Other Matters	3 Months Ended
	Sep. 30, 2014
Notes	'
Commitments, Contingencies and Other Matters	'
	15.    COMMITMENTS, CONTINGENCIES AND OTHER MATTERS
	(a)Contract Research and Development Arrangement
	On May 2009, the Company entered into a contract with YantaiTianzheng Medicine Research and Development Co. to perform research and development on two new pharmaceutical products, namely Fern Injection and Forsythia Capsule. The total contract price is approximately $2,436,449 (RMB 15,000,000). YantaiTianzheng Medicine Research and Development Co. committed to complete all research work required for the clinical trial within 3 years. As of September 30, 2014, the Company has paid $2,127,649 (RMB 13,095,044) and the remaining contract amount will be paid as the research services are performed. All payments of $2,127,649 (RMB 13,095,044) have been charged to expense. The Company extended the term of the contract to May 10, 2017 due to certain changes in government regulations that affected this research project.
	(b)Supplier Concentrations
	We have the following concentrations of business with each supplier constituting greater than 10 % of the Company’s purchases of raw materials or other supplies:
			The three months ended September 30, 2014		The three months ended September 30, 2013
	Shandong Yantai Medicine Procurement and Supply Station		24.25%		24.40%
	Shandong Shuntianyi Chinese Herbal Medicine Co., Ltd		24.92%		23.40%
	Yantai Tianyifeng Technology Development Co., Ltd		12.97%		*
	Shanxi Guangsheng Capsule Co., Ltd		*		11.70%
	* Constitutes less than 10% of the Company’s purchases.
	(c)Sales Concentrations
	Sales Product Concentrations
	Five of the Company’s products, namely Tongbi Capsules, Tongbi Tablets, Lung Nourishing Syrup, Zhengxintai Capsules and Fangfengtongsheng Granule represented approximately 22.1 %, 3.7 %, 32.9 %, 40.1% and 0.6%, respectively, of total sales for the three months ended September 30, 2014.
	Five of the Company’s products, namely Tongbi Capsules, Tongbi Tablets, Lung Nourishing Syrup, Zhengxintai Capsules and Fangfengtongsheng Granule represented approximately 29.7%, 15.6%, 14.4%, 14.9% and 22.7%, respectively, of total sales for the three months ended September 30, 2013.
	Sales Customer Concentrations
	The Company does not have concentrations of business with each customer constituting greater than 10% of the Company’s gross sales for the three months ended September 30, 2014 and 2013.
	(d)Economic and Political Risks
	The Company’s operations are conducted solely in the PRC. There are significant risks associated with doing business in the PRC, which include, among others, political, economic, legal and foreign currency exchange risks. The Company’s results may be adversely affected by changes in political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.
	(e)Concentrations of Credit Risk
	Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is deposited in state-owned banks within the PRC, and no deposits are covered by insurance. We have not experienced any losses in such accounts and believe that the Company’s loss exposure is insignificant due to the fact that banks in the PRC are state owned and are generally high credit quality financial institutions. A significant portion of the Company’s sales are credit sales which are made primarily to customers whose ability to pay are dependent upon the industry economics prevailing in these areas. We continually monitor the credit worthiness of the Company’s customers in an effort to reduce credit risk.
	At September 30, 2014 and June 30, 2014, the Company’s cash balances by geographic area were as follows:
		30-Sep-14					30-Jun-14
	Country:
	BVI(Chance High)	$            77,446		0.29%		$          23,940		0.10%
	China	27,060,707		99.71%		23,284,775		99.90%
	Total cash and cash equivalents	$    27,138,153		100%		$  23,308,715		100%
	(f)Certificate of land use right
	The Company’s corporate headquarters is located at No. 7Tianzheng Road, Laishan District, Yantai, Shandong Province in China. Under the current PRC laws, land is owned by the state, and parcels of land in rural areas which are known as collective land are owned by the rural collective economic organization. “Land use rights” are granted to an individual or entity after payment of a land use right fee is made to the applicable state or rural collective economic organization. Land use rights allow the holder of the right to use the land for a specified long-term period.
	We have 5 land use rights, for a total of approximately 675,364 square meters of land on which the Company maintains its manufacturing facility.
	The Company has not obtained a land use right certificate for one parcel of land of 280,235 square meters that is located in the high-tech development district of Laishan and that was purchased on February 22, 2010. Registration of this land use right certification is still in process. On November 12, 2013, the Company obtained the land use right certificate for one parcel land of 266,668square meters that is located in the high-tech development district of Laishan and that was purchased on November 5, 2012.
	We currently have not obtained the land use right certificate for another parcel of land located in Xingfu Twelve Village of Zhifu District. The land is about 11,222 square meters. Bohai used to have its manufacturing facility on this land. In the process of the planning of Yantai City, the usage of the aforesaid land use right has been changed from “industrial use” to “commercial use” and therefore, the approval process for the land use right certificates on five relevant parcels of land including the land occupied by Bohai has been suspended until the completion of the planning process.
	We cannot provide any assurance that the Company will eventually obtain the land use right certificates for these lands. If the Company is asked by the local government to relocate the Company’s facility, management believes that estimated relocation and other costs will be reimbursed by the local government.
	On May 5, 2014, Bohai has relocated its manufacturing facilities to YantaiTianzheng in Laishan. As of September 30, 2014, the Company’s headquarter, Bohai’s manufacturing facility and Yantai Tianzheng’s manufacturing facilities are all located in Laishan. The Company does not believe that relocation of operations would have a material adverse effect on the Company’s financial position or results of operations.
	(g)Business insurance
	Business insurance is not readily available in the PRC. To the extent that the Company suffers a loss of a type that would normally be covered by insurance in the United States, such as product liability and general liability insurance, the Company would incur significant expenses in both defending any action and in paying any claims that could result from a settlement or judgment.

Net_Income_Per_Share

Net Income Per Share	3 Months Ended
	Sep. 30, 2014
Notes	'
Net Income Per Share	'
	16.    NET INCOME PER SHARE
	Basic earnings per share are computed on the basis of the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of shares of Common Stock plus the effect of potentially dilutive common shares outstanding during the period using the if-converted method for the convertible debt and equity securities and the treasury stock method for stock options and common stock purchase warrants. The following table sets forth the computation of basic and diluted net income per common share:
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Net Income available to common stockholders - basic	$                            9,344,056	$                           8,087,731
	Interest on convertible notes	349,365	253,935
	Net Income available for common shareholders - diluted	$                            9,693,421	$                           8,341,666
	Weighted average number of common shares outstanding - basic	18,662,544	17,861,085
	Common shares if converted from Convertible Debt	1,788,221	4,232,250
	Weighted average number of common shares outstanding - diluted	20,450,764	22,093,335
	Earnings per share:
	Basic	$                                       0.50	$                                      0.45
	Diluted	$                                       0.47	$                                      0.38

Stock_Options

Stock Options	3 Months Ended
	Sep. 30, 2014
Notes	'
Stock Options	'
	17.    STOCK OPTIONS
	On October 13, 2010, we granted stock options to two directors for the purchase of 26,000 shares of our Common Stock at an exercise price of $2.00 per share. The options vested immediately and expire five years from the date of issuance. These options have been valued at $23,844. We use a binomial option pricing model to calculate the grant date fair value of the options, with the following assumptions: no dividend yield, expected volatility of 70 %, risk free interest rate of 0.3%, expected term of 2.5 years.
	On May 2, 2011, we granted stock options to a director for the purchase of 6,000 shares of our Common Stock at an exercise price of $2.00  per share. The options vested immediately and expire five years from the date of issuance. These options have been valued at $3,184. We use a binomial option pricing model to calculate the grant date fair value of the options, with the following assumptions: no dividend yield, expected volatility of 55%, risk free interest rate of 0.3%, expected term of 5 years.
	The following table summarizes the weighted average remaining contractual life and exercise price of our outstanding options as of September 30, 2014:
	Options Outstanding
	Exercise Price	Number Outstanding at September 30, 2014	Number Outstanding Currently Exercisable at September 30, 2014	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price of Options currently exercisable
	$                2.00	32,000	32,000	1.14	$                       2.00
	The Company accounts for share-based payments in accordance with ASC 718. Accordingly, it expenses the fair value of awards granted to the directors. Total compensation expense related to the stock options for the three months ended September 30, 2014and 2013 were $0 and $0, respectively.
	A summary of our stock option activity as of September 30, 2014, and changes during the three months ended September 30, 2014 and year ended June 30, 2014 is presented in the following table:
		Option Shares	Vested Shares	Exercise Price per Common Stock Range
	Balance, June 30, 2013	32,000	32,000	2.00
	Granted or vested during the year ended June 30, 2014	-	-	-
	Exercised during the year ended June 30, 2014	-	-	-
	Expired during the year ended June 30, 2014	-	-	-
	Balance, June 30, 2014	32,000	32,000	2.00
	Granted or vested during the three months ended September 30, 2014	-	-	-
	Exercised during the three months ended September 30, 2014	-	-	-
	Expired during the three months ended September 30, 2014	-	-	-
	Balance, September 30, 2014	32,000	32,000	$                 2.00

Stockholders_Equity

Stockholders ' Equity	3 Months Ended
	Sep. 30, 2014
Notes	'
Stockholders ' Equity	'
	18.    STOCKHOLDERS ’ EQUITY
	Authorized Capital
	The Company is authorized to issue 150,000,000  million shares of Common Stock, par value $ 0.001  per share. Holders of its Common Stock are entitled to one vote for each share held of record on each matter submitted to a vote of shareholders.
	Shares Issued for Conversion
	During the three months ended September 30, 2014, the Company issued 1,284,571 shares for conversion of convertible notes. $2,219,777 principal and $349,365 accrued interest for convertible notes were converted.
	Retained earnings
	According to the laws and regulations in the PRC, we are required to provide for certain statutory funds, namely, reserve fund by an appropriation from net profit after taxes but before dividend distribution based on the local statutory financial statements of the PRC company prepared in accordance with the accounting principles and relevant financial regulations.
	In the PRC, we are required to allocate at least 10% of our net profit to the reserve fund until the balance of such fund has reached 50% of its registered capital. Appropriation of enterprise expansion fund are determined at the discretion of it directors. The Company allocated $1,022,350 to the reserve fund during the three months ended September 30, 2014 which recorded in retained earnings.
	The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital.

Operating_Expenses_and_Other_I

Operating Expenses and Other Income (expenses)	3 Months Ended
	Sep. 30, 2014
Notes	'
Operating Expenses and Other Income (expenses)	'
	19.    OPERATING EXPENSES AND OTHER INCOME (EXPENSES)
	For the three months ended September 30, 2014 and 2013, operating expenses consisted of the following:
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Sales Commissions	$                                                   23,695,099	$                                                    25,036,380
	Advertising expense	763	101,280
	Audit fees and other professional expenses	35,000	27,628
	Depreciation and amortization	742,657	713,560
	Staff costs (salary &welfare)	394,938	517,980
	Research and development cost	-	39,047
	Other operating expenses	1,328,548	1,518,174
	Total Operating expenses	$                                                   26,197,005	$                                                    27,954,049

Income_Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2014
Notes	'
Income Taxes	'
	20. INCOME TAXES
	The Company is incorporated under the laws of State of Nevada in the United States of America and has legal subsidiaries in the British Virgin Islands (“BVI”) and the PRC. The Company does not have any employees or assets nor or is it engaged in any income producing activities in the Unites States and in the BVI. The Company is currently filing Federal income tax returns in the United States and applicable franchise tax returns in the state of Nevada. The Company’s net operating losses that may be available to offset future taxable income in the United States, if any, amount to approximately $8,500,000 and expire through 2032. The Company has fully reserved for these and all other deferred tax assets generated in the Company’s US operations since it currently more likely than not that those assets will not be realized in future periods.
	The Company’s only income producing activities are in the PRC. The statutory corporation income tax rate in the PRC is 25 %, which is approximately equal to the effective income tax rate that the Company expects to use when recording income tax expense for financial reporting purposes for the year ending June 30, 2015. Accordingly, the Company is recording a tax provision at interim reporting dates for taxable income earned in the PRC using the effective rate expected to be in effect for the year ending June 30, 2015.

Vie

Vie	3 Months Ended
	Sep. 30, 2014
Notes	'
Vie	'
	21. VIE
	To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through the VIE.
	As a result of the VIE Agreements signed between WOFE and Bohai, the Company includes the assets, liabilities, revenues and expenses of Bohai (the “VIE”) in its consolidated financial statements.
	Substantially all of the Company’s assets, including those of Bohai which is considered the VIE and YantaiTianzheng, which is an acquired subsidiary of the Company, are accessible to Bohai through WOFE II creditors irrespective of the VIE arrangement.
	The VIE Agreements include:
	Equity Interest Pledge Agreement.  The WOFE and Bohai’s shareholders have entered into Equity Interest Pledge Agreements, pursuant to which each Bohai shareholder has pledged all of his shares of Bohai to the WOFE in order to guarantee cash-flow payments under the applicable Consulting Services Agreement. The Equity Pledge Agreement further entitles the WOFE to collect dividends from Bohai during the term of the pledge.
	Consulting Service Agreement.  Bohai and the WOFE has entered into a Consulting Services Agreement, which provides that the WOFE will be the exclusive provider of technology services to Bohai and Bohai will pay all of its net income based on the quarterly financial statements to the WOFE for such services. Any such payment from the WOFE to the Company would need to comply with applicable Chinese laws affecting payments from Chinese companies to non-Chinese companies. See “Risk Factors – Risks Associated With Doing Business in China.”
	Operating Agreement.  Pursuant to the operating agreement among the WOFE, Bohai and the Bohai shareholders, the WOFE provides guidance and instructions on Bohai’s daily operations and financial affairs. The Bohai shareholders must designate the candidates recommended by the WOFE as their representatives on their respective boards of directors. The WOFE has the right to appoint senior executives of Bohai. In addition, the WOFE agrees to guarantee Bohai’s performance under any agreements or arrangements relating to Bohai’s business arrangements with any third party. Bohai, in return, agrees to pledge its accounts receivable and all of its assets to the WOFE. Moreover, Bohai agrees that without the prior consent of the WOFE, Bohai will not engage in any transactions that could materially affect its assets, liabilities, rights or operations, including, without limitation, incurrence or assumption of any indebtedness, sale or purchase of any assets or rights, incurrence of any encumbrance on any of its assets or intellectual property rights in favor of a third party or transfer of any agreements relating to its business operation to any third party.
	These contractual arrangements may not be as effective in providing the Company with control over the VIE as direct ownership. Due to its VIE structure, the Company has to rely on contract right to effect control and management of the VIE, which exposes it to the risk of potential breach of contract by the shareholders of Bohai. The VIE Agreements are subject to significant risks as set forth in the following risk factors.
	The PRC government may determine that the VIE Agreements used to control the Company’s operating subsidiary Bohai are not in compliance with applicable PRC laws, rules and regulations and that they are therefore unenforceable.
	There are risks involved with the operation of Bohai under the VIE Agreements. The Company has been advised by PRC legal counsel that if the PRC government determines the VIE Agreement used to control the operating company to be unenforceable as they circumvent the PRC restrictions relating to foreign investment restrictions, the relevant regulatory authorities would have broad discretion in dealing with such breach and could have a material adverse impact on our business, financial condition and results of operations.
	The Company depends upon the VIE Agreements in conducting its production, manufacturing, and distribution of traditional Chinese herbal medicines in the PRC, which may not be as effective as direct ownership.
	The Company conducts its production, manufacturing and distribution of traditional Chinese herbal medicines in the PRC and generate the revenues from the Bohai business through the VIE Agreements. The VIE Agreements may not be as effective in providing us with control over Bohai as direct ownership. The VIE Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration proceedings pursuant to PRC laws. Accordingly, the VIE Agreements will be interpreted in accordance with PRC laws. If Bohai or its shareholders fail to perform the obligations under the VIE Agreements, the Company may have to rely on legal remedies under PRC laws, including seeking specific performance or injunctive relief, and claiming damages, and there is a risk that the Company may be unable to obtain these remedies. The legal environment in China is not as developed as in other jurisdictions. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements.
	The pricing arrangement under the VIE Agreements may be challenged by the PRC tax authorities.
	The Company could face adverse tax consequences if the PRC tax authorities determine that the VIE Agreements were not entered into based on arm’s length negotiations. If the PRC tax authorities determine that the VIE Agreements were not entered into on an arm’s length basis, they may adjust the income and expenses of the Company for PRC tax purposes which could result in higher tax liability.
	On January 17, 2014, all rights and obligations of WOFE relating to Bohai, including all of WOFE’s rights and obligations under each of the VIE Agreements, were assigned in full to WOFE II.

Subsequent_Events

Subsequent Events	3 Months Ended
	Sep. 30, 2014
Notes	'
Subsequent Events	'
	22. SUBSEQUENT EVENTS
	In October 2014, convertible notes with an aggregate face amount of $298,886 and accrued interest of $41,016 were converted into 169,951 shares of Common Stock.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies: Principles of Consolidation (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Principles of Consolidation	'
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the accounts of BPGI, its wholly-owned subsidiary Chance High, WOFE II, YantaiTianzheng and Bohai. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The Company, in determining whether it is required to consolidate investee businesses, considers both the voting and variable interest models of consolidation as required under applicable GAAP. The Company adopted FASB Accounting Standards Codification (“ASC”) 810- 10 -15-14 and also ASC 810- 10 -05-8, which requires that a VIE be consolidated if that company is entitled to receive a majority of the VIE’s residual returns and has direct ability to make decisions on all operating activities of the VIE. The Company controls Bohai through the VIE Agreements described in Note 1, under the following series of agreements entered into on December 7, 2009.
	Under the Operating Agreement entered into between WOFE and Bohai, the WOFE has the direct ability to make decisions on all the operating activities and exercise all voting rights of Bohai. Under the Consulting Services Agreement entered into between WOFE and Bohai, Bohai agreed to pay all of its net income to WOFE quarterly as a consulting fee. Accordingly, WOFE has the right to receive the expected residual returns of Bohai. As such, the Company is the primary beneficiary of and maintains controlling managerial and financial interest in, Bohai in accordance with ASC 810-10-15-14. Accordingly, Bohai’s financial position and results of operations are consolidated with those of the Company for all periods presented.
	We initially measured the assets, liabilities, and non-controlling interests of Bohai at their carrying amounts as of the date of the Share Exchange. We have subsequently accounted for the assets, liabilities, and non-controlling interest of Bohai as if it was consolidated based on voting interests. The usual accounting rules for which the VIE operates are applied as they would to a consolidated subsidiary as follows:
	Carrying amounts of the VIE are consolidated into the financial statements of the Company as the primary beneficiary, or Primary Beneficiary (“PB”); and
	Inter-company transactions and balances, such as revenues and costs, receivables and payables between or among the PB and the VIE(s) are eliminated in their entirety.
	The carrying amount and classification of Bohai’s assets and liabilities included in the consolidated balance sheets are as follows:
		30-Sep-14	30-Jun-14
	Total current assets*	$     93,297,653	$            83,930,195
	Total assets*	163,516,875	154,570,385
	Total current liabilities**	29,562,990	28,442,197
	Total liabilities**	$            33,613,636	$             32,438,616
	*           Includes intercompany accounts in the amounts of $40,160,116 and $37,511,591 in current assets as of September 30, 2014 and June 30, 2014, respectively, which were eliminated in consolidation.
	**         Includes intercompany accounts in the amounts of $9,429,543 and $9,426,786 in current liabilities as of September 30, 2014 and June 30, 2014, respectively, which were eliminated in consolidation.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies: Business Combinations (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Business Combinations	'
	Business Combinations
	The Company uses the acquisition method of accounting for business combinations which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective fair values. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are charged to expense as incurred. The operating results of acquired business are reflected in the acquirer’s consolidated financial statements and results of operations after the date of the acquisition.

Summary_of_Significant_Account3

Summary of Significant Accounting Policies: Basis of Presentation (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Basis of Presentation	'
	Basis of Presentation
	The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended September30, 2014 are not necessarily indicative of the operating results for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended June 30, 2014, filed on October 14, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q.

Summary_of_Significant_Account4

Summary of Significant Accounting Policies: Business Segments (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Business Segments	'
	Business Segments
	The Company’s operates its business through a single reporting segment.

Summary_of_Significant_Account5

Summary of Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of the condensed consolidated financial statements in conformity with GAAP 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those results.
	Significant estimates and assumptions include allocating purchase consideration issued in business combinations, valuing equity securities and derivative financial instruments issued in financing transactions and in share-based payment arrangements, accounts receivable reserves, inventory reserves, and evaluating the carrying amounts and useful lives of intangible assets. Certain estimates, including accounts receivable and inventory reserves and the carrying amounts of intangible assets (including present value of future cash flow estimates for the Company’s pharmaceutical formulas) could be affected by external conditions including those unique to the Company’s industry and general economic conditions. It is reasonably possible that these external factors could have an effect on management’s estimates that could cause actual results to differ from management’s estimates.
	Company management re-evaluates all of the accounting estimates at least quarterly based on these conditions and records adjustments, when necessary.

Summary_of_Significant_Account6

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. We maintain bank accounts in the PRC and Hongkong. We also have restricted cash accounts in the United States and the PRC that include funds designated for interest payments due to convertible note holders and for use in investor relations programs pursuant to a securities purchase agreement.

Summary_of_Significant_Account7

Summary of Significant Accounting Policies: Restricted Cash (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Restricted Cash	'
	Restricted Cash
	Escrow account balances amounted to $22,375,805 and $12,623,467 as of September 30, 2014 and June 30, 2014, respectively.
	The Company is required by its Note holders to maintain deposits in escrow accounts to fund the principal and interest payments under the Convertible Notes obligation. As of September 30, 2014 and June 30, 2014, there was $12,627,158 and $7,750,568 of cash restricted for this purpose.
	The Company has certain outstanding notes payable in the amount of $19,497,295 and $9,745,795 as of September 30, 2014 and June 30, 2014, respectively, and it is required to maintain a portion of these outstanding draft amounts in its bank as restricted cash. As of September 30, 2014 and June 30, 2014, there was $9,748,647 and $4,872,899 cash restricted for this purpose.

Summary_of_Significant_Account8

Summary of Significant Accounting Policies: Accounts Receivable (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable consists of amounts due from customers. The Company’s credit terms generally range from 90 to 180 days. The Company’s policy with respect to accounts receivable reserves is to establish an allowance for doubtful accounts based on management’s assessment of known requirements, aging of receivables, payment history, specific customer’s current credit worthiness, and the economic environment. The Company has a significantly low history of credit losses and no historical pattern of making any price or collection concessions with respect to its accounts receivable balances. Accordingly, an allowance for doubtful accounts is not considered necessary based on management’s assessment.

Summary_of_Significant_Account9

Summary of Significant Accounting Policies: Inventories (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Inventories	'
	Inventories
	Inventories are valued at the lower of cost, determined using the weighted average method, or market. Finished goods inventories include the costs of raw materials, direct labor and overhead associated with the manufacturing process. In assessing the ultimate realization of inventories, management makes judgments as to future demand requirements compared to current or committed inventory levels. Our reserve requirements generally increase/decrease due to management’s projected demand requirements, market conditions and product life cycle changes. As of September 30, 2014 and June 30, 2014, management does not believe that any inventory reserves are necessary.

Recovered_Sheet1

Summary of Significant Accounting Policies: Property, Plant and Equipment (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Property, Plant and Equipment	'
	Property, Plant and Equipment
	Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets that range from 5 to 10 years for office equipment, machinery, and vehicles and 30 to 40 years for buildings. The cost of repairs and maintenance is charged to expense as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. We examine the possibility of impairment in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

Recovered_Sheet2

Summary of Significant Accounting Policies: Intangible Asset - Pharmaceutical Formulas (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Intangible Asset - Pharmaceutical Formulas	'
	Intangible Asset – Pharmaceutical Formulas
	The Company has purchased pharmaceutical formulas that were approved by the State Food and Drug Administration of China (“SFDA”). These formulas can be renewed every 5 years without limitation for a minimum fee and are subject to certain protections under PRC drug regulations for an indefinite period of time. These regulations mitigate competition and the ability of other suppliers to replicate the Company’s products or produce comparable substitutes. These intangible assets are measured initially at cost not subject to amortization and are tested for impairment annually or in interim reporting periods if events or changes in circumstances indicate that the carrying amounts of these intangible assets might not be recoverable.

Recovered_Sheet3

Summary of Significant Accounting Policies: Common Stock Purchase Warrants and Other Derivative Financial Instruments (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Common Stock Purchase Warrants and Other Derivative Financial Instruments	'
	Common Stock Purchase Warrants and Other Derivative Financial Instruments
	The Company accounts for the issuance of common stock purchase warrants issued as free standing financial instruments in accordance with the applicable provisions ASC 810 “Derivatives and Hedging Activities.” Based on this guidance, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The common stock purchase warrants have expired as of June 30, 2013 and we did not issue any warrants during the three months ended September 30, 2014.

Recovered_Sheet4

Summary of Significant Accounting Policies: Fair Value Measurements and Fair Value of Financial Instruments (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Fair Value Measurements and Fair Value of Financial Instruments	'
	Fair Value Measurements and Fair Value of Financial Instruments
	We adopted the guidance of ASC 820 for fair value measurements, which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
	Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
	Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.
	Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.
	The carrying amounts reported in the balance sheets for cash, accounts receivable, other receivables, short-term borrowings, accounts payable and accrued expenses, customer advances, and amounts due from related parties approximate their fair market value based on the short-term maturity of these instruments.
	ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. We use Level 3 inputs to value the Company’s derivative liabilities.
	The following table reflects gains and losses for the three months ended September 30, 2014 and year ended June 30, 2014 for all financial assets and liabilities categorized as Level 3.
	Liabilities:
	Balance of warrant liabilities as of June 30, 2013	$ -
	Change in the fair value of warrant liabilities	-
	Balance of warrant liabilities as of June 30, 2014	-
	Change in the fair value of warrant liabilities	-
	Balance of warrant liabilities as of September 30, 2014	$ -
	Estimating the fair value of derivative financial instruments require the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. The assumptions used to value the Company’s derivatives, which had a direct effect on the fair values. In addition, valuation techniques are sensitive to changes in the trading market price of the our Common Stock and its estimated volatility interest rate changes and other variables or market conditions not within the Company’s control that can significantly affect management’s estimates of fair value and changes in fair value. Because derivative financial instruments are initially and subsequently carried at fair value, the Company’s net income may include significant charges or credits as these estimates and assumptions change.
	The warrants expired on January 5, 2013. At the expiration time, the portion of this warrant not exercised prior thereto shall be and become void and of no value and this warrant shall be terminated and shall no longer be outstanding.

Recovered_Sheet5

Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Foreign Currency Translation	'
	Foreign Currency Translation
	The Company’s reporting currency is the U.S. dollar. The functional currency of the Company’s operating business based in the PRC is the RMB. For the Company’s subsidiaries and affiliates whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate in effect as of the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into U.S. dollars are included in comprehensive income.
	Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of the Company’s revenue transactions are transacted in the functional currency. Transaction gains or losses have not had, and are not expected to have a material effect on the Company’s results of operations.
	Period end exchange rates used to translate assets and liabilities and average exchange rates used to translate results of operations in each of the reporting periods are as follows:
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Period end US$: RMB exchange rate	6.1547	6.1439
	Average periodic US$: RMB exchange rate	6.16	6.1654
	The RMB is not freely convertible into any other currencies. In addition, all foreign exchange transactions in the PRC must be conducted through authorized institutions. Accordingly, management cannot provide any assurance that the RMB underlying the condensed consolidated financial statement amounts could have been, or could be, converted into US dollars at the exchange rates used to translate the functional currency into the reporting currency.

Recovered_Sheet6

Summary of Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition
	Revenue represents the invoiced value of goods sold recognized upon the delivery of goods to distributors. Pursuant to the guidance of ASC Topic 605 and ASC Topic 36, revenue is recognized when all of the following criteria are met:
	-Persuasive evidence of an arrangement exists;
	-Delivery has occurred or services have been rendered;
	-The seller’s price to the buyer is fixed or determinable; and
	-Collectability is reasonably assured.

Recovered_Sheet7

Summary of Significant Accounting Policies: Cost of Revenue (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Cost of Revenue	'
	Cost of Revenue
	Cost of revenue consists primarily of raw material costs, labor cost, overhead costs associated with the manufacturing process and related expenses which are directly attributable to our revenues.

Recovered_Sheet8

Summary of Significant Accounting Policies: Stock-based Compensation (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Stock-based Compensation	'
	Stock-based Compensation
	Stock based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the employee or director’s requisite service period (presumptively, the vesting period). The FASB Accounting Standards Codification also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.
	Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. We record compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated based on the then current fair value, at each subsequent reporting date.

Recovered_Sheet9

Summary of Significant Accounting Policies: Research and Development Costs (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Research and Development Costs	'
	Research and Development Costs
	Research and development costs are charged to expense as incurred and included in operating expenses. We have only one full-time employee who is engaged in research and development, so the Company is mainly dependent on third-parties to perform the limited amount of research and development that the Company undertakes (see Note 15). On March 1, 2013, the Company entered into a series of contracts with Binzhou Medical College to establish an institute named Bohai Pharmaceutical Institute in the following 5 years. On May 31, 2013, these two parties entered into two contracts agreeing on performing researches on two pharmaceutical products, namely Lung Nourishing Cream and Tongbi Capsules, in the following 17 months, respectively. These three contracts amount to $243,380  (RMB 1,500,000), that has been fully paid as of June 30, 2014. Research and development costs amounted to approximately $2,435 and $39,047 for the three months ended September 30, 2014 and 2013, respectively.

Recovered_Sheet10

Summary of Significant Accounting Policies: Shipping Costs (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Shipping Costs	'
	Shipping costs
	Shipping costs are included in selling, general and administrative expense. Shipping costs amounted to $462,770 and $272,203 for the three months ended September 30, 2014 and 2013, respectively.

Recovered_Sheet11

Summary of Significant Accounting Policies: Advertising (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Advertising	'
	Advertising
	Advertising and promotion costs are charged to expense as incurred. Advertising expenses included in selling, general and administrative expenses amounted to $763 and $101,280 for the three months ended September 30, 2014 and 2013, respectively.

Recovered_Sheet12

Summary of Significant Accounting Policies: Income Taxes (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Income Taxes	'
	Income Taxes
	We are governed by the PRC’s Income Tax Laws and the Internal Revenue Code of the United States. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement and income tax base of assets and liabilities and operating loss and tax credit carry-forwards. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the benefit of such tax assets will not be realized in future periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the periods that include the enactment date.
	We account for certain tax positions based upon authoritative guidance that prescribes a recognition threshold and measurement processes for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also provides direction on recognition, classification, interest and penalties, accounting in interim periods and related disclosure.
	Our policy is to classify assessments, if any, for tax related to interest as interest expense and penalties as general and administrative expense.

Recovered_Sheet13

Summary of Significant Accounting Policies: Earnings Per Share (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Earnings Per Share	'
	Earnings per share
	We report earnings per share in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Common equivalent shares are excluded from the computation of diluted shares in periods for which they have an anti-dilutive effect. Diluted shares underlying stock options and common stock purchase warrants are included in the determination of diluted earnings per share using the treasury stock method. Diluted shares underlying convertible debt obligations are included in the determination of diluted loss per share using the “if converted” method (Note 16).

Recovered_Sheet14

Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	3 Months Ended
	Sep. 30, 2014
Policies	'
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from contracts with Customers (Topic 606)”. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.
	In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”).
	In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued (or at the date that the financial statements are available to be issued when applicable). Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The term probable is used consistently with its use in Topic 450, Contingencies.
	When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.
	If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes):
	a.     Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans)
	b.     Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations
	c.     Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern.
	If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). Additionally, the entity should disclose information that enables users of the financial statements to understand all of the following:
	a.     Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern
	b.     Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations
	c.     Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern.
	The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.
	Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

Recovered_Sheet15

Summary of Significant Accounting Policies: Principles of Consolidation: The Carrying Amount and Classification of Bohai's Assets and Liabilities Included in The Consolidated Balance Sheets Are As Follows (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
The Carrying Amount and Classification of Bohai's Assets and Liabilities Included in The Consolidated Balance Sheets Are As Follows:	'
	The carrying amount and classification of Bohai’s assets and liabilities included in the consolidated balance sheets are as follows:
		30-Sep-14	30-Jun-14
	Total current assets*	$     93,297,653	$            83,930,195
	Total assets*	163,516,875	154,570,385
	Total current liabilities**	29,562,990	28,442,197
	Total liabilities**	$            33,613,636	$             32,438,616

Inventories_Inventories_Consis

Inventories: Inventories Consist of The Following (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Inventories Consist of The Following:	'
	Inventories consist of the following:
		30-Sep-14	June 30, 2014
	Raw materials	$                 2,451,701	$              2,231,226
	Work in progress	1,334,841	1,334,451
	Finished goods	1,457,338	935,310
	Total inventories	$                5,243,880	$             4,500,987

Property_Plant_and_Equipment_N1

Property, Plant and Equipment, Net: Property, Plant and Equipment (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Property, Plant and Equipment	'
		30-Sep-14	June 30, 2014
	Buildings	$ 14,355,280	$   13,913,970
	Plant equipment	10,941,329	11,309,330
	Office equipment	433,010	438,850
	Motor vehicles	355,777	283,648
	Total	26,085,396	25,945,798
	Less: accumulated depreciation	-5,155,918	-4,823,270
	Construction in progress	5,963	5,961
	Property, plant and equipment, net	$20,935,441	$  21,128,489

Indefinite_Lived_Intangible_As1

Indefinite Lived Intangible Assets - Pharmaceutical Formulas: Schedule of Indefinite-Lived Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Indefinite-Lived Intangible Assets	'
		30-Sep-14	June 30, 2014
	Pharmaceutical formulas, without amortization, net of impairment	$   14,168,772	$  14,164,630

Intangible_Assets_Land_Use_Rig1

Intangible Assets - Land Use Rights, Net: Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	'
		30-Sep-14	June 30, 2014
	Land use rights, at cost	$       40,262,785	$       40,251,014
	Less: Accumulated amortization	-2,841,221	-2,632,674
	Intangible assets – land use rights, net	$       37,421,564	$       37,618,340

Intangible_Assets_Land_Use_Rig2

Intangible Assets - Land Use Rights, Net: Installments Table (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Installments Table	'
	Installment	Payment date	Amount in USD
	First	11/30/12	$3,235,879
	Second	12/31/12	3,235,879
	Third	6/30/13	6,471,759
	Fourth	12/31/13	6,497,199
	Total		$19,440,716

Intangible_Assets_Land_Use_Rig3

Intangible Assets - Land Use Rights, Net: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	'
		Amortization
	1 year after September 30, 2014	$                                                831,110
	2 years after September 30, 2014	831,110
	3 years after September 30, 2014	831,110
	4 years after September 30, 2014	831,110
	5 years after September 30, 2014	831,110
	Thereafter	33,266,014
	Total	$                                          37,421,564

Other_Intangible_Assets_Net_Ot

Other Intangible Assets, Net: Other Intangible Assets At September 30, 2014 Consist of The Following (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Other Intangible Assets At September 30, 2014 Consist of The Following:	'
	Other intangible assets at September 30, 2014 consist of the following:
		Customer Relationships	Yantai Tianzheng Drug Formulas	Defensive Drug Formulas	Total
	Cost	$  14,861,163	$                              10,384,096	$                10,375,059	$     35,620,318
	Accumulated Amortization	(6,148,634)	(4,258,949)	(2,593,765)	(13,001,348)
	Net carrying amount	$     8,712,529	$                                 6,125,147	$                  7,781,294	$     22,618,970
	Other intangible assets at June 30, 2014 consist of the following:
		Customer Relationships	Yantai Tianzheng Drug Formulas	Defensive Drug Formulas	Total
	Cost	$  14,856,818	$                              10,381,061	$                10,372,025	$     35,609,904
	Accumulated Amortization	(5,674,003)	(3,928,913)	(2,268,880)	(11,871,796)
	Net carrying amount	$     9,182,815	$                                 6,452,148	$                  8,103,145	$     23,738,108

Accrued_Expenses_Schedule_of_A

Accrued Expenses: Schedule of Accrued Liabilities (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Accrued Liabilities	'
		30-Sep-14	June 30, 2014
	Sales representatives commission and expenses	$         4,759,455	$         5,879,162
	Other payable for PPE	1,270,165	3,889,955
	Other accrued expense	784,001	741,129
	Other taxes payable	2,747,643	2,380,031
	Accrued Interest expenses	2,372,968	2,372,625
	Compensation and related cost	480,755	455,663
	Total	$      12,414,987	$      15,718,565

Commitments_Contingencies_and_1

Commitments, Contingencies and Other Matters: Schedules of Concentration of Risk, by Risk Factor (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedules of Concentration of Risk, by Risk Factor	'
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Shandong Yantai Medicine Procurement and Supply Station	24.25%	24.40%
	Shandong Shuntianyi Chinese Herbal Medicine Co., Ltd	24.92%	23.40%
	Yantai Tianyifeng Technology Development Co., Ltd	12.97%	*
	Shanxi Guangsheng Capsule Co., Ltd	*	11.70%

Commitments_Contingencies_and_2

Commitments, Contingencies and Other Matters: Schedule of Cash Balances By Georgraphic Segment (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Cash Balances By Georgraphic Segment	'
		30-Sep-14			30-Jun-14
	Country:
	BVI(Chance High)	$            77,446	0.29%	$          23,940		0.10%
	China	27,060,707	99.71%	23,284,775		99.90%
	Total cash and cash equivalents	$    27,138,153	100%	$  23,308,715		100%

Net_Income_Per_Share_Schedule_

Net Income Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Earnings Per Share, Basic and Diluted	'
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Net Income available to common stockholders - basic	$                            9,344,056	$                           8,087,731
	Interest on convertible notes	349,365	253,935
	Net Income available for common shareholders - diluted	$                            9,693,421	$                           8,341,666
	Weighted average number of common shares outstanding - basic	18,662,544	17,861,085
	Common shares if converted from Convertible Debt	1,788,221	4,232,250
	Weighted average number of common shares outstanding - diluted	20,450,764	22,093,335
	Earnings per share:
	Basic	$                                       0.50	$                                      0.45
	Diluted	$                                       0.47	$                                      0.38

Stock_Options_Schedule_of_Othe

Stock Options: Schedule of Other Share-based Compensation, Activity (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Other Share-based Compensation, Activity	'
	Options Outstanding
	Exercise Price	Number Outstanding at September 30, 2014	Number Outstanding Currently Exercisable at September 30, 2014	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price of Options currently exercisable
	$                2.00	32,000	32,000	1.14	$                       2.00

Stock_Options_Schedule_of_Shar

Stock Options: Schedule of Share-based Compensation, Activity (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Share-based Compensation, Activity	'
		Option Shares	Vested Shares	Exercise Price per Common Stock Range
	Balance, June 30, 2013	32,000	32,000	2.00
	Granted or vested during the year ended June 30, 2014	-	-	-
	Exercised during the year ended June 30, 2014	-	-	-
	Expired during the year ended June 30, 2014	-	-	-
	Balance, June 30, 2014	32,000	32,000	2.00
	Granted or vested during the three months ended September 30, 2014	-	-	-
	Exercised during the three months ended September 30, 2014	-	-	-
	Expired during the three months ended September 30, 2014	-	-	-
	Balance, September 30, 2014	32,000	32,000	$                 2.00

Operating_Expenses_and_Other_I1

Operating Expenses and Other Income (expenses): Schedule of Operating Costs and Expenses (Tables)	3 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Operating Costs and Expenses	'
		The three months ended September 30, 2014	The three months ended September 30, 2013
	Sales Commissions	$                                                   23,695,099	$                                                    25,036,380
	Advertising expense	763	101,280
	Audit fees and other professional expenses	35,000	27,628
	Depreciation and amortization	742,657	713,560
	Staff costs (salary &welfare)	394,938	517,980
	Research and development cost	-	39,047
	Other operating expenses	1,328,548	1,518,174
	Total Operating expenses	$                                                   26,197,005	$                                                    27,954,049

Organization_and_Principal_Act1

Organization and Principal Activities (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Equity Method Investment, Ownership Percentage	100.00%	'
Common Stock, Par Value	$0.00	$0.00
Chance High International Limited	'	'
Equity Method Investment, Ownership Percentage	100.00%	'
Chairman and Chief Executive Officer	'	'
Equity Method Investment, Ownership Percentage	96.70%	'
Two Other Shareholders	'	'
Equity Method Investment, Ownership Percentage	3.30%	'

Liquidity_and_Financial_Condit1

Liquidity and Financial Condition (Details) (USD $)

0 Months Ended

3 Months Ended

52 Months Ended

52 Months Ended

52 Months Ended

52 Months Ended

Jun. 08, 2010

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2014

Sep. 02, 2015

Aug. 15, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 02, 2015

Aug. 15, 2013

Sep. 30, 2014

US ($)

US ($)

US ($)

US ($)

CNY

CNY

CNY

CNY

Yantai Rural Commercial Bank Ltd.

Yantai Rural Commercial Bank Ltd.

Final Construction Cost

Yantai Rural Commercial Bank Ltd.

Yantai Rural Commercial Bank Ltd.

Final Construction Cost

Net income

'

$9,344,056

$8,087,731

'

'

'

'

'

'

'

'

'

'

Net cash provided by operating activities

'

6,485,538

7,784,583

'

'

'

'

'

'

'

'

'

'

Working Capital

'

54,049,117

'

54,049,117

'

'

'

'

'

'

'

'

'

Construction and Development Costs

3,160,000

'

'

'

'

3,160,000

'

'

4,820,000

19,500,000

'

'

29,680,000

Percentage Of Construction Completed

'

'

'

100.00%

'

'

'

'

'

'

'

'

'

Convertible Notes Payable, Current

'

'

'

'

'

5,216,023

'

'

'

'

'

'

'

Short-term loan, net

'

$4,874,324

'

$4,874,324

$4,872,899

'

$4,874,324

$4,874,324

'

'

$30,000,000

$30,000,000

'

Recovered_Sheet16

Summary of Significant Accounting Policies: Principles of Consolidation: The Carrying Amount and Classification of Bohai's Assets and Liabilities Included in The Consolidated Balance Sheets Are As Follows (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Total Current Assets	$102,816,166	$82,618,690
TOTAL ASSETS	203,660,957	184,766,249
Total current liabilities	48,767,049	39,586,014
TOTAL LIABILITIES	62,100,627	55,165,640
Condensed balance sheet	'	'
Total Current Assets	93,297,653	83,930,195
TOTAL ASSETS	163,516,875	154,570,385
Total current liabilities	29,562,990	28,442,197
TOTAL LIABILITIES	$33,613,636	$32,438,616

Recovered_Sheet17

Summary of Significant Accounting Policies: Principles of Consolidation (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Total Current Assets	$102,816,166	$82,618,690
Total current liabilities	48,767,049	39,586,014
Intersegment Elimination | US ($)	'	'
Total Current Assets	40,160,116	37,511,591
Total current liabilities	$9,429,543	$9,426,786

Recovered_Sheet18

Summary of Significant Accounting Policies: Restricted Cash (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Escrow Deposit	$22,375,805	$12,623,467
Restricted Cash and Cash Equivalents	12,627,158	7,750,568
Notes payable	19,497,295	9,745,795
Bank Overdrafts | US ($)	'	'
Restricted Cash and Cash Equivalents	$9,748,647	$4,872,899

Recovered_Sheet19

Summary of Significant Accounting Policies: Property, Plant and Equipment (Details) (Building)	3 Months Ended
	Sep. 30, 2014
Minimum	'
Property, Plant and Equipment, Useful Life	'30 years
Maximum	'
Property, Plant and Equipment, Useful Life	'40 years

Recovered_Sheet20

Summary of Significant Accounting Policies: Intangible Asset - Pharmaceutical Formulas (Details)	3 Months Ended
	Sep. 30, 2014
Details	'
Indefinite Lived Intangible Asset Intellectual Property Renewal	'5 years

Recovered_Sheet21

Summary of Significant Accounting Policies: Foreign Currency Translation (Details)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Details	'	'
Foreign Currency Exchange Rate, Translation	6.1547	6.1439
Foreign Currency Transactions Average Exchange Rates	6.16	6.1654

Recovered_Sheet22

Summary of Significant Accounting Policies: Research and Development Costs (Details) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Research and Development Expense	'	$39,047	'
US ($)	'	'	'
Repayment Of Contracts	'	'	243,380
Research and Development Expense	2,435	39,047	'
CNY	'	'	'
Repayment Of Contracts	'	'	$1,500,000

Recovered_Sheet23

Summary of Significant Accounting Policies: Shipping Costs (Details) (US ($), USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
US ($)	'	'
Shipping, Handling and Transportation Costs	$462,770	$272,203

Recovered_Sheet24

Summary of Significant Accounting Policies: Advertising (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Details	'	'
Advertising Expense	$763	$101,280

Inventories_Inventories_Consis1

Inventories: Inventories Consist of The Following (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Details	'	'
Inventory, Raw Materials, Gross	$2,451,701	$2,231,226
Inventory, Work in Process, Gross	1,334,841	1,334,451
Inventory, Finished Goods, Gross	1,457,338	935,310
Inventory, Gas in Storage Underground, Noncurrent	$5,243,880	$4,500,987

Property_Plant_and_Equipment_N2

Property, Plant and Equipment, Net: Property, Plant and Equipment (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Property, Plant and Equipment, Gross	$26,085,396	$25,945,798
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	-5,155,918	-4,823,270
Construction in Progress, Gross	5,963	5,961
Property, plant and equipment, net	20,935,441	21,128,489
Buildings	'	'
Property, Plant and Equipment, Gross	14,355,280	13,913,970
Plant Equipment	'	'
Property, Plant and Equipment, Gross	10,941,329	11,309,330
Office Equipment	'	'
Property, Plant and Equipment, Gross	433,010	438,850
Vehicles	'	'
Property, Plant and Equipment, Gross	$355,777	$283,648

Property_Plant_and_Equipment_N3

Property, Plant and Equipment, Net (Details) (USD $)	0 Months Ended	3 Months Ended
	Jun. 08, 2010	Sep. 30, 2014	Sep. 30, 2013
Details	'	'	'
Property, Plant, and Equipment Depreciation Expense	'	$330,953	$276,748
Construction and Development Costs	$3,160,000	'	'
Construction Completion Percentage	'	100.00%	'

Indefinite_Lived_Intangible_As2

Indefinite Lived Intangible Assets - Pharmaceutical Formulas: Schedule of Indefinite-Lived Intangible Assets (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Details	'	'
Intangible assets- pharmaceutical formulas	$14,168,772	$14,164,630

Intangible_Assets_Land_Use_Rig4

Intangible Assets - Land Use Rights, Net: Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Long term prepayments- land use right, net	$37,421,564	$37,618,340
Use Rights	'	'
Finite-Lived Intangible Assets, Gross	40,262,785	40,251,014
Finite-Lived Intangible Assets, Accumulated Amortization	-2,841,221	-2,632,674
Long term prepayments- land use right, net	$37,421,564	$37,618,340

Intangible_Assets_Land_Use_Rig5

Intangible Assets - Land Use Rights, Net: Installments Table (Details) (USD $)	Jun. 30, 2014
First Installment | November 30, 2012	'
Installments	$3,235,879
Second Installment | December 31, 2012	'
Installments	3,235,879
Third Installment | June 30, 2013	'
Installments	6,471,759
Fourth Installment | December 31, 2013	'
Installments	6,497,199
Total Installments	'
Installments	$19,440,716

Intangible_Assets_Land_Use_Rig6

Intangible Assets - Land Use Rights, Net (Details) (Land Use Rights, US ($), USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Land Use Rights | US ($)	'	'
Amortization of Intangible Assets	$207,599	$206,914

Intangible_Assets_Land_Use_Rig7

Intangible Assets - Land Use Rights, Net: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Long term prepayments- land use right, net	$37,421,564	$37,618,340
Use Rights	'	'
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	831,110	'
Finite-Lived Intangible Assets, Amortization Expense, Year Two	831,110	'
Finite-Lived Intangible Assets, Amortization Expense, Year Three	831,110	'
Finite-Lived Intangible Assets, Amortization Expense, Year Four	831,110	'
Finite-Lived Intangible Assets, Amortization Expense, Year Five	831,110	'
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	33,266,014	'
Long term prepayments- land use right, net	$37,421,564	$37,618,340

Other_Intangible_Assets_Net_Ot1

Other Intangible Assets, Net: Other Intangible Assets At September 30, 2014 Consist of The Following (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Other intangible assets, net	$22,618,970	$23,738,108	'
USD ($)	'	'	'
Other Finite-Lived Intangible Assets, Gross	35,620,318	35,609,904	'
Finite-Lived Intangible Assets, Accumulated Amortization	-13,001,348	-11,871,796	'
Other intangible assets, net	22,618,970	'	23,738,108
Customer Relationships | USD ($)	'	'	'
Other Finite-Lived Intangible Assets, Gross	14,861,163	14,856,818	'
Finite-Lived Intangible Assets, Accumulated Amortization	-6,148,634	-5,674,003	'
Other intangible assets, net	8,712,529	9,182,815	'
Yantai Tianzheng Drug Formulas | USD ($)	'	'	'
Other Finite-Lived Intangible Assets, Gross	10,384,096	10,381,061	'
Finite-Lived Intangible Assets, Accumulated Amortization	-4,258,949	-3,928,913	'
Other intangible assets, net	6,125,147	6,452,148	'
Defensive Drug Formulas | USD ($)	'	'	'
Other Finite-Lived Intangible Assets, Gross	10,375,059	10,372,025	'
Finite-Lived Intangible Assets, Accumulated Amortization	-2,593,765	-2,268,880	'
Other intangible assets, net	$7,781,294	'	$8,103,145

Other_Intangible_Assets_Net_De

Other Intangible Assets, Net (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
			Other Intangible Assets	Customer Relationships	Customer Relationships	Drug Formulas	Drug Formulas	Defensive Drug Formulas	Defensive Drug Formulas
Amortization of Other Deferred Charges	'	'	'	$472,565	$472,151	$328,605	$326,377	$323,942	$323,658
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	'	'	4,504,323	'	'	'	'	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Two	'	'	4,504,323	'	'	'	'	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Three	'	'	4,504,323	'	'	'	'	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Four	'	'	4,504,323	'	'	'	'	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Five	'	'	3,304,797	'	'	'	'	'	'
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	'	'	1,296,881	'	'	'	'	'	'
Other intangible assets, net	$22,618,970	$23,738,108	$22,618,970	'	'	'	'	'	'

Goodwill_Details

Goodwill (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Jun. 30, 2014	Aug. 08, 2011
			US ($)	US ($)	CNY	CNY	Yantai Tianzheng
							US ($)
Business Acquisition, Percentage of Voting Interests Acquired	'	'	'	'	'	'	100.00%
Business Acquisition, Cost of Acquired Entity, Purchase Price	'	'	'	'	'	'	$35,000,000
Goodwill	$5,224,186	$5,222,658	$5,224,186	$5,222,658	$32,153,295	$32,153,295	'

Accrued_Expenses_Schedule_of_A1

Accrued Expenses: Schedule of Accrued Liabilities (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Details	'	'
Accrued Sales Commission, Current	$4,759,455	$5,879,162
Other Payable For Ppe	1,270,165	3,889,955
Other Accrued Liabilities, Current	784,001	741,129
Accrual for Taxes Other than Income Taxes, Current	2,747,643	2,380,031
Interest Payable, Current	2,372,968	2,372,625
Accrued Employee Benefits, Current	480,755	455,663
Accrued expenses	$12,414,987	$15,718,565

Due_To_Related_Party_Details

Due To Related Party (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Details	'	'
Due to Other Related Parties	$55,461	$55,626

Notes_Payable_Details

Notes Payable (Details) (USD $)

3 Months Ended

6 Months Ended

Sep. 30, 2014

Mar. 31, 2015

Oct. 31, 2014

Jun. 30, 2014

Sep. 30, 2014

Sep. 19, 2014

Jun. 30, 2014

Apr. 22, 2014

Sep. 30, 2014

Jun. 30, 2014

Apr. 25, 2014

Sep. 30, 2014

Sep. 19, 2014

Apr. 22, 2014

Jun. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Apr. 25, 2014

Guarantees

Guarantees

Subsequent Event

CNY

CNY

CNY

CNY

CNY

CNY

CNY

Guarantees

Guarantees

Subsequent Event

Notes Payable, Related Parties, Current

'

'

'

'

$19,497,295

$9,748,648

$9,745,797

$9,748,647

'

'

'

$120,000,000

$60,000,000

$60,000,000

$60,000,000

'

'

'

Bank Charge Fee Percentage

'

0.05%

0.05%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Restricted Cash Minimum Percentage on Notes Payable

50.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Restricted Cash and Cash Equivalents

$12,627,158

'

'

$7,750,568

'

'

'

'

$9,748,647

$4,872,899

$4,872,899

'

'

'

'

$60,000,000

$30,000,000

$30,000,000

Shortterm_Loan_Details

Short-term Loan (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 02, 2014	Jun. 30, 2014
Short-term loan, net	$4,874,324	'	$4,872,899
Debt Instrument, Interest Rate, Effective Percentage	9.00%	6.00%	'
Debt Instrument, Maturity Date	14-Aug-14	'	'
USD ($)	'	'	'
Short-term loan, net	4,874,324	4,874,324	'
CNY	'	'	'
Short-term loan, net	$30,000,000	30,000,000	'

Convertible_Promissory_Notes_i1

Convertible Promissory Notes in Default and Due On Demand (Details) (USD $)

3 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2014

Sep. 02, 2014

Jan. 05, 2010

Jan. 06, 2010

Jun. 30, 2014

Jan. 06, 2010

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

SecuritiesPurchaseAgreementMember

SecuritiesPurchaseAgreementMember

EightPercentSeniorConvertiblePromissoryNoteMember

EightPercentSeniorConvertiblePromissoryNoteMember

Repayment Date One

Repayment Date Two

Repayment Date Three

Repayment Date Four

Repayment Date Five

Repayment Date Six

Repayment Date Seven

Sale of Stock, Number of Shares Issued in Transaction

'

'

'

'

6,000,000

'

'

'

'

'

'

'

'

'

'

Proceeds from Issuance or Sale of Equity

'

'

'

'

$12,000,000

'

'

'

'

'

'

'

'

'

'

Debt Instrument, Interest Rate, Effective Percentage

9.00%

'

'

6.00%

'

8.00%

'

8.00%

'

'

'

'

'

'

'

Common Stock Convertible Conversion Price

'

'

'

'

'

$2

'

$2

'

'

'

'

'

'

'

Class of Warrant or Right, Exercise Price of Warrants or Rights

'

'

'

'

'

$2.40

'

'

'

'

'

'

'

'

'

Debt Instrument, Maturity Date

14-Aug-14

'

'

'

'

'

5-Jan-12

'

'

'

'

'

'

'

'

Accretion of Note Discount

0

0

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest Expense, Debt

0

'

253,935

'

'

'

'

'

'

'

'

'

'

'

'

Description On Event Of Default

'upon an Event of Default, and provided no more than 50% of the aggregate face amount of the Notes have been converted, the Investors holding Notes have the right to receive a portion

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Notes Payable

5,216,025

'

7,435,800

'

'

'

'

'

'

'

'

'

'

'

'

Repayment Date Of Convertible Debt

'

'

'

'

'

'

'

'

14-May-12

28-Jun-12

3-Jul-12

29-Nov-12

9-Oct-13

29-Oct-13

6-Mar-14

Repayment of convertible notes

'

'

'

'

'

'

'

'

$314,000

$100,000

$631,000

$940,500

$100,000

$300,000

$446,450

Debt Instrument, Debt Default, Description of Violation or Event of Default

'the Company’s principal shareholder, Mr. Qu, is obligated to deliver 1,000,000 shares of Common Stock to the Investors if a default occurs.

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Commitments_Contingencies_and_3

Commitments, Contingencies and Other Matters (Details) (USD $)

31-May-09

31-May-09

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Contract Research and Development Arrangement

Contract Research and Development Arrangement

Contract Research and Development Arrangement

Tongbi Capsules

Tongbi Capsules

Tongbi Tablet

Tongbi Tablet

Lung Nourishing Syrup

Lung Nourishing Syrup

Zhengxintai Capsules

Zhengxintai Capsules

Fang Fengtongsheng Tablets

Fang Fengtongsheng Tablets

CNY

Yantai Tianzheng

Total Contract Amount Paid

$2,436,449

$15,000,000

$2,127,649

'

'

'

'

'

'

'

'

'

'

Percentage of Total Sales

'

'

'

22.10%

29.70%

3.70%

15.60%

32.90%

14.40%

40.10%

14.90%

0.60%

22.70%

Commitments_Contingencies_and_4

Commitments, Contingencies and Other Matters: Schedules of Concentration of Risk, by Risk Factor (Details)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Shandong Yantai Medicine Procurement and Supply Station	'	'
Concentration Risk, Percentage	24.25%	24.40%
Shandong Shuntianyi Chinese Herbal Medicine Co., Ltd	'	'
Concentration Risk, Percentage	24.92%	23.40%
Yantai Tianyifeng Technology Development Co., Ltd	'	'
Concentration Risk, Percentage	12.97%	0.00%
Shanxi Guangsheng Capsule Co., Ltd	'	'
Concentration Risk, Percentage	0.00%	11.70%

Commitments_Contingencies_and_5

Commitments, Contingencies and Other Matters: Schedule of Cash Balances By Georgraphic Segment (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Jun. 30, 2013
Cash and cash equivalents at beginning of period	$27,138,153	$23,308,715	$14,441,774	$6,947,972
Percentage of Cash and Cash Equivalents By Geographical Segment	100.00%	100.00%	'	'
BVI	'	'	'	'
Cash and cash equivalents at beginning of period	77,446	23,940	'	'
Percentage of Cash and Cash Equivalents By Geographical Segment	0.29%	0.10%	'	'
China	'	'	'	'
Cash and cash equivalents at beginning of period	$27,060,707	$23,284,775	'	'
Percentage of Cash and Cash Equivalents By Geographical Segment	99.71%	99.90%	'	'

Net_Income_Per_Share_Schedule_1

Net Income Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Details	'	'
Net Income (Loss) Available to Common Stockholders, Basic	$9,344,056	$8,087,731
Effective Interest On Convertible Notes And Amortization Of Debt Issued Costs	349,365	253,935
Net Income (Loss) Available to Common Stockholders, Diluted	$9,693,421	$8,341,666
Weighted average common shares outstanding, basic	18,662,544	17,861,085
Common Shares Issuable Upon Conversion Of Convertible Debt	1,788,221	4,232,250
Weighted average common shares outstanding, diluted	20,450,764	22,093,335
Net income per common share, basic	$0.50	$0.45
Net income per common share, diluted	$0.47	$0.38

Stock_Options_Details

Stock Options (Details) (USD $)	0 Months Ended		3 Months Ended
	2-May-11	Oct. 13, 2010	Sep. 30, 2014	Sep. 30, 2013
Details	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	'	26,000	'	'
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$2	$2	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$3,184	$23,844	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	55.00%	70.00%	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.30%	0.30%	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	'5 years	'2 years 6 months	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	6,000	'	'	'
Stock or Unit Option Plan Expense	'	'	$0	$0

Stock_Options_Schedule_of_Othe1

Stock Options: Schedule of Other Share-based Compensation, Activity (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Details	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$2	$2	$2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	32,000	32,000	32,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	32,000	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	1.14	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$2	'	'

Stock_Options_Schedule_of_Shar1

Stock Options: Schedule of Share-based Compensation, Activity (Details) (USD $)	0 Months Ended
	2-May-11	Oct. 13, 2010	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Details	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	'	'	32,000	32,000	32,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	'	'	32,000	32,000	32,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	'	'	$2	$2	$2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	6,000	'	'	'	'
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$2	$2	'	'	'

Stockholders_Equity_Details

Stockholders ' Equity (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Details	'	'
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Par Value	$0.00	$0.00
Percentage Of Net Income To Be Allocated To Reserve Fund	10.00%	'
Restructuring Reserve	$1,022,350	'

Operating_Expenses_and_Other_I2

Operating Expenses and Other Income (expenses): Schedule of Operating Costs and Expenses (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Details	'	'
Commission	$23,695,099	$25,036,380
Marketing and Advertising Expense	763	101,280
Professional Fees	35,000	27,628
Depreciation, Depletion and Amortization, Nonproduction	742,657	713,560
Staff Costs	394,938	517,980
Research and Development Expense	'	39,047
Other Cost and Expense, Operating	1,328,548	1,518,174
TOTAL OPERATING EXPENSES	$26,197,005	$27,954,049

Income_Taxes_Details

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2014
Details	'
Operating Loss Carry Forwards Expiration	'2032
Effective Income Tax Rate Reconciliation At Federal Statutory Corporation Income Tax Rate	25.00%