RELATED PARTY TRANSACTIONS

9 Months Ended

Jul. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

11.        RELATED PARTY TRANSACTIONS

Due from related parties included in the condensed consolidated balance sheets as at July 31, 2011 and October 31, 2010 comprised of:

	2011		2010
	US$		US$
Due from related parties:
Advances (1)		129,880		28,877
Deposits (2)		22,316,195		18,605,935
Total		22,446,075		18,634,812

(1) Advances

Mr. Li Shaoming, our chairman, chief executive officer and president, is also chairman and a 50% shareholder of Harbin Renhuang Pharmaceutical Stock Co. Ltd (“Stock Co”).

As of July 31, 2011 and October 31, 2010, the Company has an amount due from Mr. Li Shaoming of $129,880 and $28,877 respectively, which is advanced for travelling and business expenses related with CBP China.

(2) Deposits

On October 12, 2009, we entered into a purchase agreement with Stock Co. to acquire the land use right, property and plant located at our Ah City Natural and Biopharmaceutical plant for a total consideration of $24,875,622. Pursuant to the purchase agreement, a payment of $15,547,264 was made to Stock Co. in October 2009 and a payment of $ 7,773,632 was made to Stock Co. in January 2011, with a final payment of $1,554,726 due by December 31, 2011, at which time title for the assets will be transferred. Accordingly the transaction is considered incomplete as of July 31, 2011.

(3) Rental Expenses

The Company leases property and plant from Stock Co.  Rental expenses related to this lease, incurred and expensed to condensed consolidated statements of operations and comprehensive income during the three and nine months ended July 31, 2011 amounted to $193,036 and $572,065, respectively, which were noncash rental expenses and recognized to account for the rental exemption pursuant to the Purchase, and the deposits for the property were reduced accordingly.