RELATED PARTY TRANSACTIONS

12 Months Ended

Oct. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

11.  RELATED PARTY TRANSACTIONS 

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

	2011		2010
	US$		US$
Due from related parties:
Advances ( 1)		—		28,877
Deposits ( 2)		23,527,566		18,605,935
Total		23,527,566		18,634,812

(1) Advances

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

As of October 31, 2011 and 2010, the Company has a net amount due from Mr. Shaoming Li of $0 and $28,877, respectively, which is advance for travelling and business.

(2) Deposits

On October 12, 2009, we entered into a purchase agreement with Renhuang Stock to acquire the land use right, property and plant located at our Ah City Natural and Biopharmaceutical plant for a total consideration of $25,096,070. Pursuant to the purchase agreement, a payment of $15,685,044 was made to Renhuang Stock in October 2009 and a payment of $7,842,522 was made to Renhuang Stock in January 2011, with a final payment of $1,568,504 due by the date of receiving all the related government transfer documents, at which time title for the assets will be transferred. Accordingly the transaction is considered incomplete as of October 31, 2011.

(3) Rental Expenses

The Company leases property and plant from Renhuang Stock. Rental expenses related to this lease, incurred and expensed to consolidated statements of operations and comprehensive income during the year ended October 31, 2011 and 2010 amounted to $766,607 and $367,224, respectively, which were forgiven rental expenses and recognized to account for the rental exemption pursuant to the purchase agreement, and the deposits for the property were reduced accordingly. Under the lease terms, the Company no longer pay rent to Renhuang Stock for the use of the property and plant.