10-Q/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 10-Q/A

 (Amendment No. 1)

(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended July 31, 2012
o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from              to

Commission File Number: 001-34808

CHINA BOTANIC PHARMACEUTICAL INC.

(Exact name of registrant as specified in its charter)

Nevada	88-1273503
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

Level 11, Changjiang International Building

No. 28, Changjiang Road, Nangang District, Harbin

Heilongjiang Province, China 150090

(Address of principal executive offices)

86-451-5762-03787

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    

x Yes    o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  

x Yes    o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,”   “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer   o  (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

o Yes    x No

As of September 4, 2012, there were 37,239,536 shares of the registrant’s $0.001 par value common stock issued and outstanding.

 Explanatory Note

China Botanic Pharmaceutical Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (the “Amendment”) to the Company’s quarterly report on Form 10-Q for the period ended July 31, 2012 (the “Form 10-Q”), filed with the Securities and Exchange Commission on September 19, 2012 (the “Original Filing Date”), solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405(f)(3) of Regulation S-T. Exhibit 101 consists of the following materials from the Company’s Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language):

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema
101.CAL	XBRL Taxonomy Calculation Linkbase
101.DEF	XBRL Taxonomy Definition Linkbase
101.LAB	XBRL Taxonomy Label Linkbase
101.PRE	XBRL Taxonomy Presentation Linkbase

No other changes have been made to the Form 10-Q. This Amendment speaks as of the Original Filing Date, does not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way disclosures made in the Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files attached as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6.   Exhibits

Exhibit Number	Description
31.1	Certification of Principal Executive Officer pursuant to Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Certification of Principal Financial Officer pursuant to Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification of Principal Executive and Financial Officers pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101.INS	XBRL Instance Document (1)
101.SCH	XBRL Taxonomy Extension Schema (1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase (1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase (1)
101.LAB	XBRL Taxonomy Extension Label Linkbase (1)
101.FRE	XBRL Taxonomy Extension Presentation Linkbase (1)

_____________

*Previously filed with the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2012, as filed with the Securities and Exchange Commission on September 19, 2012.

(1) XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on our behalf by the undersigned, thereunto duly authorized.

Date: September 20, 2012	CHINA BOTANIC PHARMACEUTICAL INC.
	By:	/s/ Li Shaoming
		Li Shaoming, Chief Executive Officer and President
		(Principal Executive Officer)
Date: September 20, 2012	By:	/s/ Weiqiu Dong
		Weiqiu Dong, Chief Financial Officer
		(Principal Financial Officer)

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EARNINGS PER SHARE (Tables)

9 Months Ended

Jul. 31, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

The following reconciles the components of the EPS computation for the three months ended July 31, 2012 and 2011:

	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	US$				US$
For the three months ended July 31, 2012:
Net income		3,255,538
Basic EPS income available to common shareholders		3,255,538		37,239,536		0.09
Effect of dilutive securities:
Share Options		-		-		-
Share Warrants		-		-		-
Diluted EPS income available to common shareholders		3,255,538		37,239,536		0.09
For the three months ended July 31, 2011:
Net income		2,519,845
Basic EPS income available to common shareholders		2,519,845		37,239,536		0.07
Effect of dilutive securities:
Share Options				-
Share Warrants		-		234,375		-
Diluted EPS income available to common shareholders		2,519,845		37,473,911		0.07

The following reconciles the components of the EPS computation for the nine months ended July 31, 2012 and 2011:

	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	US$				US$
For the nine months ended July 31, 2012:
Net income		23,412,891
Basic EPS income available to common shareholders		23,412,891		37,239,536		0.63
Effect of dilutive securities:
Share Options				-
Share Warrants		-		-		-
Diluted EPS income available to common shareholders		23,412,891		37,239,536		0.63
For the nine months ended July 31, 2011:
Net income		20,549,196
Basic EPS income available to common shareholders		20,549,196		37,239,536		0.55
Effect of dilutive securities:
Share Options				-
Share Warrants		-		510,051		-
Diluted EPS income available to common shareholders		20,549,196		37,749,587		0.54

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PROPERTY AND EQUIPMENT, NET (Details Textual) (Heilongjiang Yongtai Company [Member], USD $)	1 Months Ended
	Apr. 30, 2010	May 31, 2012 Office Building [Member]
Property, Plant and Equipment	$ 6,064,878
Payments to Acquire Buildings	4,245,415	1,819,463
Property, Plant and Equipment, Transfers and Changes		$ 2,829,699

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CONCENTRATIONS OF BUSINESS AND CREDIT RISK (Details Textual) (USD $)	3 Months Ended		9 Months Ended				3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011	Oct. 31, 2011	Oct. 31, 2010	Jul. 31, 2012 Product Concentration Risk [Member] Botanical Anti Depression [Member]	Jul. 31, 2011 Product Concentration Risk [Member] Botanical Anti Depression [Member]	Jul. 31, 2012 Product Concentration Risk [Member] Botanical Anti Depression [Member]	Jul. 31, 2011 Product Concentration Risk [Member] Botanical Anti Depression [Member]	Jul. 31, 2012 Product Concentration Risk [Member] Nerve Regulation Products [Member]	Jul. 31, 2011 Product Concentration Risk [Member] Nerve Regulation Products [Member]	Jul. 31, 2012 Product Concentration Risk [Member] Nerve Regulation Products [Member]	Jul. 31, 2011 Product Concentration Risk [Member] Nerve Regulation Products [Member]	Jul. 31, 2012 Sales Revenue, Goods, Net [Member]	Jul. 31, 2011 Sales Revenue, Goods, Net [Member]	Jul. 31, 2012 Sales Revenue, Goods, Net [Member]	Jul. 31, 2011 Sales Revenue, Goods, Net [Member]	Jul. 31, 2012 Accounts Receivable [Member]	Jul. 31, 2012 Accounts Receivable [Member]	Jul. 31, 2012 Trade Accounts Payable [Member] Three and Four Individual Suppliers [Member]	Oct. 31, 2011 Trade Accounts Payable [Member] Three and Four Individual Suppliers [Member]	Jul. 31, 2012 Trade Accounts Payable [Member] Three and Two Individual Suppliers [Member]	Oct. 31, 2011 Trade Accounts Payable [Member] Three and Two Individual Suppliers [Member]
Cash	$ 41,308,177	$ 38,321,244	$ 41,308,177	$ 38,321,244	$ 15,283,583	$ 27,826,142
Concentration Risk, Percentage	59.00%	68.00%	43.00%	36.00%			71.00%	71.00%	68.00%	68.00%	70.00%	70.00%	68.00%	68.00%	12.00%	10.00%	10.00%	10.00%	12.00%	12.00%	87.00%	100.00%	87.00%	75.00%

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (Details) (Warrant [Member], USD $)	Jul. 31, 2012	Oct. 31, 2011
Fair Value, Inputs, Level 1 [Member]
Warrants liability	$ 0	$ 0
Fair Value, Inputs, Level 2 [Member]
Warrants liability	1,086	23,443
Fair Value, Inputs, Level 3 [Member]
Warrants liability	$ 0	$ 0

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INTANGIBLE ASSETS, NET (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Finite-Lived Intangible Assets	$ 18,337,891	$ 18,194,651
Less: Accumulated amortization	(1,598,377)	(1,047,951)
Intangible assets, net	16,739,514	17,146,700
Yichun Under Growth Resources [Member]
Finite-Lived Intangible Assets	15,808,527	15,685,044
Product Patents [Member]
Finite-Lived Intangible Assets	$ 2,529,364	$ 2,509,607

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OPTIONS AND WARRANTS (Details 3) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Options, Non-vested	181,668	240,835	250,000	58,334
Options, Granted	0	0	0	200,000
Options, Vested	(4,166)	0	(72,498)	(17,499)
Options, Forfeited or expired	0	0	0	0
Options, Non-vested	177,502	240,835	177,502	240,835
Weighted average granted date fair value, Non-vested	$ 1.60	$ 2.22	$ 1.17	$ 2.57
Weighted average granted date fair value, Granted	$ 0	$ 0	$ 0	$ 2.15
Weighted average granted date fair value, Vested	$ 0.68	$ 0	$ 1.19	$ 2.57
Weighted average granted date fair value, Forfeited or expired	$ 0	$ 0	$ 0	$ 0
Weighted average granted date fair value, Non-vested	$ 1.17	$ 2.22	$ 1.17	$ 2.22

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Jul. 31, 2012
Machinery and Equipment [Member]
Property, Plant and Equipment, Useful Life	10 years
Office Equipment and Furnishings [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Office Equipment and Furnishings [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Motor vehicles [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Motor vehicles [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Office Building [Member]
Property, Plant and Equipment, Useful Life	30 years

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PROPERTY AND EQUIPMENT, NET (Tables)

9 Months Ended

Jul. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment and related accumulated depreciation as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Machinery and equipment		3,739,492			3,710,282
Office Building		2,829,699			-
Office equipment and furnishings		66,874			66,352
Motor vehicles		57,206			56,759
Total:		6,693,271			3,833,393
Less: Accumulated depreciation		(2,438,296	)		(2,054,409	)
Net book value		4,254,975			1,778,984

Schedule Of Depreciation Expense Incurred And Recognized For Property Plants Equipment Table [Text Block]

The depreciation expense incurred and recognized on our condensed consolidated statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011 were as follow:

	For the three months ended July 31,
	2012		2011
	US$		US$
Depreciation expenses in general and administrative		75,251		5,365
Depreciation expenses in cost of goods sold		94,418		92,283
Total depreciation expenses		169,669		97,648

	For the nine months ended July 31,
	2012		2011
	US$		US$
Depreciation expenses in general and administrative		84,185		12,899
Depreciation expenses in cost of goods sold		282,988		273,480
Total depreciation expenses		367,173		286,379

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OPTIONS AND WARRANTS (Details 4) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Warrants, Outstanding	1,231,428	1,231,428	1,231,428	1,231,428
Warrants granted	0	0	0	0
Warrants, Exercised	0	0	0	0
Warrants, Expired/cancelled	1,071,428	0	1,071,428	0
Warrants, Outstanding	160,000	1,231,428	160,000	1,231,428
Average exercise price, Outstanding warrants	$ 1.03	$ 1.03	$ 1.03	$ 1.03
Average exercise price, Expired/cancelled	$ 0.88	$ 0	$ 0.88	$ 0
Average exercise price, Outstanding warrants	$ 2.00	$ 1.03	$ 2.00	$ 1.03

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PREFERRED STOCK, COMMON STOCK AND EQUITY TRANSACTIONS (Details)	3 Months Ended
	Jul. 31, 2012
Warrant [Member]
Expected volatility	68.96%
Expected dividends	0.00%
Expected term (in years)	7 months 24 days
Risk-free rate	0.30%
Common Stock and Equity [Member]
Expected volatility	175.80%
Expected dividends	0.00%
Expected term (in years)	3 years
Risk-free rate	1.375%

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COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended		1 Months Ended
	Oct. 31, 2011	Jan. 31, 2011	Jul. 31, 2012	Jul. 31, 2012	Jul. 31, 2011	Apr. 30, 2010 Heilongjiang Yongtai Company [Member]	Jan. 31, 2011 Ah City Natural and Biopharmaceutical Plant [Member]	Oct. 31, 2009 Ah City Natural and Biopharmaceutical Plant [Member]
Related Party Transaction, Amounts of Transaction						$ 6,064,878	$ 7,904,264	$ 25,293,644
Purchase of property and equipment				908,396	5,862		7,904,264	15,808,527
Due to Related Parties							1,580,853
Payments To Acquire License Rights	6,323,411	7,904,264
License Agreement Purchase Price			1,580,853	1,580,853
Long-term Purchase Commitment, Amount			$ 32,905,449
License Agreement Description		On January 11, 2011, CBP China entered into an Exclusive Licensing Agreement for Harbin Renhuang Pharmaceutical Co., Ltd. to Use Forest Resources under Yichun Red Star Forestry Bureau (the "Agreement") with Yichun Red Star Forestry Bureau of Heilongjiang Province (the "Forestry Bureau") which provides us with 30 years exclusive license right to use approximately 6,667 hectares of undergrowth resources including approximately 67 hectares of Siberian Ginseng GAP cultivation base in Heilongjiang Province.

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INTANGIBLE ASSETS, NET (Details 2) (USD $)	Jul. 31, 2012	Oct. 31, 2011
2012 remaining	$ 180,631
2013	722,524
2014	722,524
2015	722,524
2016	722,524
2017 and thereafter	13,668,787
Total	$ 16,739,514	$ 17,146,700

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OPTIONS AND WARRANTS (Details 1) (Omnibus 2003 Plan B [Member])	3 Months Ended
	Jul. 31, 2012
Omnibus 2003 Plan B [Member]
Expected volatility	127.76%
Expected dividends	0.00%
Expected term (in years)	3 years
Risk-free rate	1.12%

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COMMITMENTS AND CONTINGENCIES (Details 2) (USD $)	9 Months Ended
	Jul. 31, 2012
Paid Amount	$ 23,349,195
Remaining Amount	10,702,373
Total Amount	34,051,568
Patent Of Ingredients and Preparation For Parkinson Drug [Member]
Purchase Date	August 2011
Paid Amount	1,359,533
Remaining Amount	1,359,533
Total Amount	2,719,066
Patent Of Ingredients and Preparation Of Xiang Dousu [Member]
Purchase Date	August 2011
Paid Amount	1,343,725
Remaining Amount	1,343,725
Total Amount	2,687,450
Patent Of Mudouye Extract [Member]
Purchase Date	September 2011
Paid Amount	1,897,023
Remaining Amount	1,897,023
Total Amount	3,794,046
Patent Of Hongdoushan Extract [Member]
Purchase Date	September 2011
Paid Amount	2,387,088
Remaining Amount	2,387,088
Total Amount	4,774,176
Patent Of Ingredients and Preparation For Jizhi Pills [Member]
Purchase Date	October 2011
Paid Amount	2,134,151
Remaining Amount	2,134,151
Total Amount	4,268,302
Yichun Undergrowth Resource Exclusive Using Right [Member]
Purchase Date	January 2011
Paid Amount	14,227,675
Remaining Amount	1,580,853
Total Amount	$ 15,808,528

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OPTIONS AND WARRANTS (Details Textual) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended			0 Months Ended	3 Months Ended	9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011	Dec. 14, 2010 Chief Financial Officer [Member]	Jul. 31, 2012 Chief Financial Officer [Member]	Jul. 31, 2012 Chief Financial Officer [Member]	Dec. 14, 2010 Chief Financial Officer [Member] Stock Expected To Vest In Year One [Member]	Dec. 14, 2010 Chief Financial Officer [Member] Stock Expected To Vest In Year Two [Member]	Oct. 15, 2011 Director [Member]	Jul. 31, 2012 Director [Member]	Jul. 31, 2012 Director [Member]	Oct. 15, 2011 Director [Member] First 11 Quarter Anniversaries Of Grant [Member]	Oct. 15, 2011 Director [Member] Twelfth Quarter Anniversary Of Grant [Member]	Mar. 19, 2007 Employee [Member] Non Qualified Company Stock Grant and Option 2007 Plan [Member]
Share-Based Compensation	$ 22,877	$ 36,182	$ 71,493	$ 96,981		$ 20,040	$ 62,982				$ 2,837	$ 8,511
Stock Issued During Period, Shares, Reverse Stock Splits			25,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	3,723,954		3,723,954
Shares Held in Employee Stock Option Plan, Allocated					200,000					50,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number								60,000	70,000				4,166	4,174
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price					$ 2.15					$ 0.80
Stockholders' Equity, Reverse Stock Split			1-for-30
Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested and Expected To Vest Outstanding Weighted Average Remaining Contractual Term 1					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value							259,251				34,042
Audit Fees										2,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized															200,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 142,931	$ 333,836	$ 142,931	$ 333,836

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COMMITMENTS AND CONTINGENCIES (Details 3) (Harbin TV Weishi Advertising Company [Member], USD $)	9 Months Ended
	Jul. 31, 2012
Harbin TV Weishi Advertising Company [Member]
Contract Date	Jan. 31, 2012
Paid Amount	$ 3,604,344
Remaining Amount	3,604,344
Total Amount	$ 7,208,688

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OPTIONS AND WARRANTS (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Options, Outstanding	284,998	270,000	284,998	70,000
Options, Granted	0	0	0	200,000
Options, Exercised	0	0	0	0
Options, Forfeited or expired	0	0	0	0
Options, Outstanding	284,998	270,000	284,998	270,000
Weighted average exercise price, Outstanding	$ 1.96	$ 2.26	$ 1.96	$ 2.57
Weighted average exercise price, Granted	$ 0	$ 0	$ 0	$ 2.15
Weighted average exercise price, Exercised	$ 0	$ 0	$ 0	$ 0
Weighted average exercise price, Forfeited or expired	$ 0	$ 0	$ 0	$ 0
Weighted average exercise price, Outstanding	$ 1.96	$ 2.26	$ 1.96	$ 2.26
Aggregate intrinsic value, Outstanding	$ 381,886	$ 426,083	$ 381,886	$ 166,832
Aggregate intrinsic value, Granted	0	0	0	259,251
Aggregate intrinsic value, Outstanding	$ 381,886	$ 426,083	$ 381,886	$ 426,083
Weighted average remaining contractual term, Outstanding	4 years 1 month 24 days	4 years 9 months 22 days	4 years 7 months 20 days	2 years 5 months 12 days
Weighted average remaining contractual term, Granted	0 years	0 years	0 years	5 years 4 months 17 days
Weighted average remaining contractual term, Outstanding	3 years 10 months 24 days	4 years 7 months 13 days	3 years 10 months 24 days	4 years 7 months 13 days

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (Details 1) (Warrant [Member])	3 Months Ended
	Jul. 31, 2012
Warrant [Member]
Expected volatility	68.96%
Expected dividends	0.00%
Expected term (in years)	7 months 24 days
Risk-free rate	0.30%

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RESERVES

9 Months Ended

Jul. 31, 2012

Statutory Reserves [Abstract]

Statutory Reserves [Text Block]

NOTE 20 - RESERVES

 (1) Statutory reserves

Pursuant to the relevant laws and regulations of the PRC, the Company is required to annually transfer 10% of its after tax profit as reported on condensed consolidated financial statements prepared under the accounting principles of the PRC to a statutory surplus reserve fund until the balance reaches 50% of the registered share capital.  This reserve can be used to make up any losses incurred or to increase share capital.  Except for reducing losses incurred, any other application may not result in this reserve balance falling below 25% of the registered capital.

(2) Public welfare funds

Prior to January 1, 2007, the Company was required each year to transfer 5% of its after tax profit as reported on condensed consolidated financial statements prepared under the accounting principles of the PRC to the public welfare funds.  This reserve was restricted to capital expenditure for employees’ collective welfare facilities that are owned by the Company.  The public welfare funds are not available for distribution to the stockholders (except in liquidation).  Once capital expenditures for staff welfare facilities have been made, an equivalent amount must be transferred from the public welfare funds to the discretionary common reserve funds.  Due to a change in PRC law, appropriation of profit to the public welfare funds is no longer required. 

The reserve funds as of July 31, 2012 and October 31, 2011 were comprised of the following:

	2012		2011
	US$		US$
Statutory surplus reserve		3,090,320		3,090,320
Public welfare fund		282,377		282,377
Total		3,372,697		3,372,697

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OTHER RECEIVABLES, NET (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Advanced Siberian Ginseng payment	$ 0	$ 6,631,157
Other receivables	568,545	577,554
Less: Allowance for doubtful accounts	(388,334)	(385,301)
Other receivables, net	$ 180,211	$ 6,823,410

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OPTIONS AND WARRANTS (Tables)

9 Months Ended

Jul. 31, 2012

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of option activity and movement during the three and nine months ended at July 31, 2012 and 2011, respectively, are as follow:

	Options		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term
For the three months ended July 31, 2012
Outstanding at May 1, 2012		284,998	$	1.96	$	381,886		4.15
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2012		284,998	$	1.96	$	381,886		3.90
For the three months ended July 31, 2011
Outstanding at May 1, 2011		270,000	$	2.26	$	426,083		4.81
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2011		270,000	$	2.26	$	426,083		4.62

	Options		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term
For the nine months ended July 31, 2012
Outstanding at November 1, 2011		284,998	$	1.96	$	381,886		4.64
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2012		284,998	$	1.96	$	381,886		3.90
For the nine months ended July 31, 2011
Outstanding at November 1, 2010		70,000	$	2.57	$	166,832		2.45
Granted		200,000		2.15		259,251		5.38
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2011		270,000	$	2.26	$	426,083		4.62

Schedule of Nonvested Share Activity [Table Text Block]

A summary of the status of the Company’s non-vested options as of July 31, 2012 and 2011, respectively, and movements during the three and nine months then ended are as follow:

	Options			Weighted average granted date fair value
For the three months ended July 31, 2012
Non-vested at May 1, 2012		181,668		$	1.60
Granted		-			-
Vested		(4,166	)		0.68
Forfeited or expired		-			-
Non-vested at July 31, 2012		177,502		$	1.17
For the three months ended July 31, 2011
Non-vested at May 1, 2011		240,835		$	2.22
Granted		-			-
Vested		-			-
Forfeited or expired		-			-
Non-vested at July 31, 2011		240,835		$	2.22

	Options			Weighted average granted date fair value
For the nine months ended July 31, 2012
Non-vested at November 1, 2011		250,000		$	1.17
Granted		-			-
Vested		(72,498	)		1.19
Forfeited or expired		-			-
Non-vested at July 31, 2012		177,502		$	1.17
For the nine months ended July 31, 2011
Non-vested at November 1, 2010		58,334		$	2.57
Granted		200,000			2.15
Vested		(17,499	)		2.57
Forfeited or expired		-			-
Non-vested at July 31, 2011		240,835		$	2.22

Schedule Of Warrant Activity [Table Text Block]

A summary of warrant activity and movement during the three and nine months ended at July 31, 2012 and 2011, respectively, are as follow:

	Warrants		Average exercise price
For the three months ended July 31, 2012
Outstanding warrants at May 1, 2012		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		1,071,428		0.88
Outstanding warrants at July 31, 2012		160,000	$	2.00
For the three months ended July 31, 2011
Outstanding warrants at May 1, 2011		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		-		-
Outstanding warrants at July 31, 2011		1,231,428	$	1.03

	Warrants		Average exercise price
For the nine months ended July 31, 2012
Outstanding warrants at November 1, 2011		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		1,071,428		0.88
Outstanding warrants at July 31, 2012		160,000	$	2.00
For the nine months ended July 31, 2011
Outstanding warrants at November 1, 2010		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		-		-
Outstanding warrants at July 31, 2011		1,231,428	$	1.03

Schedule Of Warrants Outstanding [Table Text Block]

Information regarding the warrants outstanding at July 31, 2012 and 2011 are summarized as below:

	Warrants Outstanding		Weighted average remaining contractual life(years)		Weighted average exercise price
Warrants outstanding at July 31, 2012		160,000		0.65		2.00
		1,071,428		0.79	$	0.88
		160,000		1.65		2.00
Warrants outstanding at July 31, 2011		1,231,428		0.90	$	1.03

Omnibus 2003 Plan A [Member]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The valuation was based on the assumptions noted in the following table.

Expected volatility	96.46	%
Expected dividends	0.00	%
Expected term (in years)	3 years
Risk-free rate	1.06	%

Omnibus 2003 Plan B [Member]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The valuation was based on the assumptions noted in the following table.

Expected volatility	127.76	%
Expected dividends	0.00	%
Expected term (in years)	3 years
Risk-free rate	1.12	%

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OPTIONS AND WARRANTS (Details) (Omnibus 2003 Plan A [Member])	3 Months Ended
	Jul. 31, 2012
Omnibus 2003 Plan A [Member]
Expected volatility	96.46%
Expected dividends	0.00%
Expected term (in years)	3 years
Risk-free rate	1.06%

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DEFERRED TAX ASSETS (Tables)

9 Months Ended

Jul. 31, 2012

Deferred Tax Assets [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets as of July 31, 2012 and October 31, 2011 were listed as following:

Deferred tax assets as of	Allowance for doubtful and inventory provision		Temporary difference		Income tax rate			Deferred tax assets
July 31, 2012	$	935,480	$	935,480		15	%	$	140,322
October 31, 2011	$	928,174	$	928,174		15	%	$	139,226

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PROPERTY AND EQUIPMENT, NET (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Property and Equipment	$ 6,693,271	$ 3,833,393
Less: Accumulated depreciation	(2,438,296)	(2,054,409)
Net book value	4,254,975	1,778,984
Machinery and Equipment [Member]
Property and Equipment	3,739,492	3,710,282
Office Building [Member]
Property and Equipment	2,829,699	0
Office Equipment and Furnishings [Member]
Property and Equipment	66,874	66,352
Motor vehicles [Member]
Property and Equipment	$ 57,206	$ 56,759

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EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Net income	$ 3,255,538	$ 2,519,845	$ 23,412,891	$ 20,549,196
Basic EPS income available to common shareholders	3,255,538	2,519,845	23,412,891	20,549,196
Basic EPS income available to common shareholders (in shares)	37,239,536	37,239,536	37,239,536	37,239,536
Effect of dilutive securities:
Share Options (in shares)	0	0	0	0
Share Warrants	0	0	0	0
Share Warrants (in shares)	0	234,375	0	510,051
Diluted EPS income available to common shareholders	$ 3,255,538	$ 2,519,845	$ 23,412,891	$ 20,549,196
Diluted EPS income available to common shareholders (in shares)	37,239,536	37,473,911	37,239,536	37,749,587
Basic EPS income available to common shareholders (in dollars per share)	$ 0.09	$ 0.07	$ 0.63	$ 0.55
Diluted EPS income available to common shareholders (in dollars per share)	$ 0.09	$ 0.07	$ 0.63	$ 0.54

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DEPOSITS FOR PROPERTIES (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Noncash Rental Expenses	$ 231,308	$ 195,661	$ 760,652	$ 572,065
Ah City Pharmaceutical Plant [Member]
Noncash Rental Expenses	197,503	195,661	591,949	572,065
Two Office Floor [Member]
Noncash Rental Expenses	$ 33,805	$ 0	$ 168,703	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended						9 Months Ended					9 Months Ended
	Jul. 31, 2012 USD ($)	Jul. 31, 2012 CNY	Oct. 31, 2011 USD ($)	Oct. 31, 2011 CNY	Jul. 31, 2011 USD ($)	Jul. 31, 2011 CNY	Jul. 31, 2012 USD ($)	Jul. 31, 2012 CNY	Jul. 31, 2011 USD ($)	Jul. 31, 2011 CNY	Mar. 25, 2010	Jul. 31, 2012 Minimum [Member]	Jul. 31, 2012 Maximum [Member]
Foreign Currency Exchange Rate Translation		6.33		6.38				6.33
Foreign Currency Average Exchange Rate Translation		6.33				6.48		6.34		6.56
Unrealized currency translation adjustments	$ 143,931				$ 828,537		$ 819,577		$ 3,004,411
Finite-Lived Intangible Asset, Useful Life												10 years	30 years
Sales Rebates	1,225,303		1,681,721				1,225,303
Deducted Sales Rebates	1,408,448				790,792		6,061,247		4,995,396
Sales Return Percentage							0.05%	0.05%
Sales and marketing	1,832,351				1,559,863		5,247,122		4,430,053
Research and development	1,900,363				1,686,677		2,928,875		2,585,863
Percentage Of Contribution To Employee Benefit Plan							22.00%	22.00%
Unified Enterprise Income Tax Rate							25.00%	25.00%
Foreign-Invested Enterprises Federal Tax Rate							30.00%	30.00%
Foreign-Invested Enterprises Local Tax Rate							3.00%	3.00%
Foreign Invested Enterprises Tax Rate							33.00%	33.00%
Effective Income Tax Rate Reconciliation, Tax Exempt Income							10.00%	10.00%
Income tax rate	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%
Value Added Tax Rate Payable												13.00%	17.00%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	3,399,469				3,348,382		24,232,468		23,553,607
Accumulated other comprehensive income	$ 9,440,272		$ 8,620,695				$ 9,440,272
Class of Warrant or Right, Number of Securities Called by Warrants or Rights											160,000

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CONCENTRATIONS OF BUSINESS AND CREDIT RISK

9 Months Ended

Jul. 31, 2012

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 4 - CONCENTRATIONS OF BUSINESS AND CREDIT RISK

The Company conducts all of its primary trade in the PRC.  There can be no assurance that the Company will be able to successfully conduct its trade, and failure to do so would have a material adverse effect on the Company’s financial position, results of operations and cash flows. Also, the success of the Company’s operations is subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general economic conditions, price of raw material, competition, governmental and political conditions, and changes in regulations. Because the Company is dependent on foreign trade in the PRC, the Company is subject to various additional political, economic and other uncertainties. Among other risks, the Company’s operations will be subject to risk of restrictions on transfer of funds, domestic and international customs, changing taxation policies, foreign exchange restrictions, and political and governmental regulations.

(1) Cash

The Company maintains certain bank accounts in the PRC which are not protected by FDIC insurance or other insurance. Cash balance held in PRC bank accounts amounted to $41,308,177 and $15,283,583, as of July 31, 2012 and October 31, 2011, respectively.  No cash balances were restricted as of July 31, 2012 and October 31, 2011.

As of July 31, 2012 and October 31, 2011, substantially all of the Company’s cash were held by major financial institutions located in the PRC which management believes are of high credit quality.

(2) Sales and trade receivables

The Company provides credit in the normal course of business and substantially all customers are located in the PRC. The Company performs ongoing credit evaluations of its customers and maintains allowances for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other information. Prior to deduction of sales rebates, there is one individual customer accounted for 12% of total sales and there is none accounted for over 10% of total sales during the three months ended July 31, 2012 and 2011, respectively. This individual customer is accounted for 12% of accounting receivables as of July 31, 2012. There is one individual customer accounted for 10% of total sales and there is none accounted for over 10% of total sales during nine months ended July 31, 2012 and 2011, respectively. This individual customer is accounted for 12% of account receivables as of July 31, 2012.

The Company’s products are sold throughout the PRC. For three months ended July 31, 2012 and 2011, botanical anti-depression and nerve-regulation products accounted for 71% and 70%, respectively, of total sales. For nine months ended July 31, 2012 and 2011, botanical anti-depression and nerve-regulation products accounted for 68% and 68%, respectively, of total sales. 

(3) Foreign currency

The Company operates in the PRC, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between U.S. dollars and the Chinese currency RMB.

(4) Dividends

Payments of dividends may be subject to some restrictions due to the fact that the operating activities are conducted in a subsidiary residing in the PRC.

(5) Price control

The retail prices of certain pharmaceuticals sold in the PRC, primarily those included in the national and provincial Medical Insurance Catalogs are subject to price controls in the form of fixed prices or price ceilings. As such, the retail prices for certain of the Company’s pharmaceutical products can be adjusted downward or upward from time to time. Price controls did not have a material impact on the Company’s operation during the three and nine months ended July 31, 2012 and 2011.

(6) Cost of goods sold

Cost of goods sold is subject to price fluctuations due to various factors beyond the Company’s control, including, among other pertinent factors, inflation and changes in governmental regulations and programs. The Company expects cost of goods sold will continue to fluctuate and be affected by inflation in the future. The Company’s raw materials are purchased from various independent suppliers. The Company does have long term relationships with major suppliers to ensure quality material, good service with competitive prices. The Company maintains an updated qualified supplier list to secure the Company’s material needs in case of changing situation from any one of our major suppliers. There are three and four individual suppliers of over 10% of total purchasing accounted for 59% and 68% of total purchasing during the three months ended July 31, 2012 and 2011, respectively. These three and four individual suppliers are accounted for 87% and 100% of trade payable as of July 31, 2012 and October 31, 2011, respectively. There are three and two individual suppliers of over 10% of total purchasing accounted for 43% and 36% of total purchasing during nine months ended July 31, 2012 and 2011, respectively. These three and two individual suppliers are accounted for 87% and 75% of trade payable as of July 31, 2012 and October 31, 2011.

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DEPOSITS FOR PROPERTIES (Details Textual) (USD $)			3 Months Ended		1 Months Ended
	Jul. 31, 2012	Oct. 31, 2011	Oct. 31, 2011 Product Patents [Member]	Jul. 31, 2012 Product Patents [Member]	Apr. 30, 2010 Heilongjiang Yongtai Company [Member]	May 31, 2012 Heilongjiang Yongtai Company [Member] Office Building [Member]
Property, Plant and Equipment					$ 6,064,878
Payments to Acquire Buildings					4,245,415	1,819,463
Prepaid Amount	35,866,750	39,299,697	11,559,878	9,121,520
Property, Plant and Equipment, Transfers and Changes						2,829,699
Proceeds from Other Deposits			$ 2,509,607

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RESERVES (Tables)

9 Months Ended

Jul. 31, 2012

Statutory Reserves [Abstract]

Schedule Of Reserve Funds [Table Text Block]

The reserve funds as of July 31, 2012 and October 31, 2011 were comprised of the following:

	2012		2011
	US$		US$
Statutory surplus reserve		3,090,320		3,090,320
Public welfare fund		282,377		282,377
Total		3,372,697		3,372,697

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Jul. 31, 2012

Accounting Policies [Abstract]

Schedule Of Estimated Useful Lives For Significant Property and Equipment [Table Text Block]

Depreciation is provided over the estimated useful lives of the related assets using the straight-line method.  The estimated useful lives for significant property and equipment categories are as follows:

Machinery and equipment	10 years
Office equipment and furnishings	5-10 years
Motor vehicles	5-10 years
Office buildings	30 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jul. 31, 2012

Accounting Policies [Abstract]

Basis Of Accounting, Policy [Policy Text Block]

a. Basis of presentation of financial statements

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and are expressed in terms of US dollars.

The Company operates in one operating segment in accordance with accounting guidance FASB ASC Topic 280, “Segment Reporting”. Our CEO has been identified as the chief operating decision maker as defined by FASB ASC Topic 280.

Consolidation, Policy [Policy Text Block]

b. Principles of consolidation

The condensed consolidated financial statements include the financial statements of CBP and its subsidiaries.

All inter-company transactions and balances have been eliminated in consolidation.

FASB ASC Topic 810, “Consolidation”, requires noncontrolling minority interests to represent the portion of earnings that is not within the parent company’s control. The noncontrolling minority interests are required to be reported as equity instead of as a liability on the balance sheet.  In addition this statement requires net income from noncontrolling minority interest to be shown separately on the condensed consolidated statements of income and comprehensive income. The Company has no noncontrolling interest as of July 31, 2012 and October 31, 2011.

Use of Estimates, Policy [Policy Text Block]

c. Use of estimates

The preparation of these condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affected the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of net sales and expenses during the reported periods.

Significant estimates and assumptions by management include, among others, uncollectible accounts receivable, slow moving, obsolete and/or damaged inventory, the carrying amount of property and equipment and intangible assets, reserve for employee benefit obligations, stock warrant valuation, share-based compensation, noncash rental expense and other uncertainties. Actual results may differ from these estimates.  The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

d. Foreign currency translation

The Company’s principal country of operations is in PRC. The financial position and results of operations of the subsidiaries are determined using the local currency (“Renminbi” or “RMB”) as the functional currency.

Translation of amounts from RMB into US dollars for reporting purposes is performed by translating the results of operations denominated in foreign currency at the weighted average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the market rate of exchange ruling at that date. The registered equity capital denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. All translation adjustments resulting from the translation of the financial statements into the reporting currency (US dollars) are reported as a component of accumulated other comprehensive income in shareholders’ equity.

As of July 31, 2012 and October 31, 2011, the exchange rates were RMB 6.33 and RMB 6.38, respectively. For the three months ended July 31, 2012 and 2011, the average exchange rates were RMB 6.33 and RMB 6.48, and the net income translation adjustments totaled $143,931 and $828,537, respectively. For the nine months ended July 31, 2012 and 2011, the average exchange rates were RMB 6.34 and RMB 6.56, and the net income translation adjustments totaled $819,577 and $3,004,411, respectively.

Cash and Cash Equivalents, Policy [Policy Text Block]

e. Cash

There are no restriction to cash at July 31, 2012 and October 31, 2011. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by the Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance.  Given the current economic environment and risks in the banking industry, there is a risk that deposits may not be readily available.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

f. Trade receivables, net

Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivable payment terms vary and amounts due from customers are stated in the condensed consolidated financial statements net of an allowance for doubtful accounts and sales rebates. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivables.  Trade receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time the trade receivable is past due, the Company’s previous loss history, the counter party’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off receivables when they are deemed uncollectible, and payments subsequently received on such trade receivables are credited to the allowance for doubtful accounts.  There were no trade receivables write offs for the three and nine months ended July 31, 2012 and 2011. The Company does not have any off-balance sheet credit exposure related to its customers.

Inventory, Policy [Policy Text Block]

g. Inventory, net

Inventory consists of raw materials, packaging materials, work-in-progress and finished goods and is valued at the lower of cost or market value. The value of inventory is determined using the weighted average cost method and includes any related production overhead costs incurred in bringing the inventory to their present location and condition. Overhead costs included in finished goods include, direct labor cost and other costs directly applicable to the manufacturing process.

The Company estimates an inventory provision for excessive, slow moving and obsolete inventories as well as inventory whose carrying value is in excess of net realizable value.  Inventory amounts are reported net of such allowances.  There were no inventory write offs for the three and nine months ended July 31, 2012 and 2011.

Property, Plant and Equipment, Policy [Policy Text Block]

h. Property and equipment, net

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Depreciation is provided over the estimated useful lives of the related assets using the straight-line method.  The estimated useful lives for significant property and equipment categories are as follows:

Machinery and equipment	10 years
Office equipment and furnishings	5-10 years
Motor vehicles	5-10 years
Office buildings	30 years

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

i. Intangible assets, net

Intangible assets consist of purchased patents and resource using right. Intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets with a finite useful life are amortized using the straight-line method over valid periods varied from 10 to 30 years, which is the estimated economic life of the intangible assets.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

j. Accounting for the impairment of long-lived assets

The Company’s long-lived assets and other assets (consisting of property and equipment) are reviewed for impairment in accordance with the guidance of the FASB ASC Topic 360, “Property, Plant, and Equipment,” FASB ASC Topic 350, "Intangibles - Goodwill and Others," and FASB ASC Topic 205 “Presentation of Financial Statements.”  The Company tests for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows.  Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial positions.  Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of July 31, 2012 and October 31, 2011, the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances that demand for the Company’s products or services will continue, which could result in an impairment of long-lived assets in the future.

Fair Value of Financial Instruments, Policy [Policy Text Block]

k. Fair value of financial instruments

The Company applies the provisions of accounting guidance, FASB ASC Topic 825, “Financial Instruments,” that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.  As of July 31, 2012 and October 31, 2011 the carrying value of cash, trade receivables, other receivables and accounts payable, approximated their fair value. All derivatives are recorded at fair value evaluated based on Black-Scholes option model.

Fair Value Measurement, Policy [Policy Text Block]

l. Fair value measurements

The FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements.

Various inputs are considered when determining the fair value of the Company’s financial instruments. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.  These inputs are summarized in the three broad levels listed below.

Ÿ	Level 1 – observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets.
Ÿ	Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.).
Ÿ	Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of financial instruments).

The Company’s adoption of FASB ASC Topic 825 did not have a material impact on the Company’s condensed consolidated financial statements.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared.

The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment.

Revenue Recognition, Policy [Policy Text Block]

m. Revenue recognition

Revenue is recognized in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition,” which states that revenue should be recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the service has been rendered; (3) the selling price is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured.

Interest income is recognized when earned, taking into account the average principal amounts outstanding and the interest rates applicable.

The Company provided annual sales rebates to its distributors based upon sales volumes.  Sales rebates are recorded as a current liability at the time of the sale based upon the Company’s estimates of whether each customer would be entitled to rebates for the period.  At quarter end, the accrued rebate amount is adjusted to the actual amount earned and reclassified to trade receivables in accordance with legal right of offset.  Sales rebates were deducted from sales in the accompanying condensed consolidated statements of income and comprehensive income. Sales rebates are calculated based on terms specified in contracts with individual distributors.

As of July 31, 2012 and October 31, 2011, the Company has accrued $1,225,303 and $1,681,721, respectively, for sales rebates, which offset the balance of trade receivables.  For the three months ended July 31, 2012 and 2011, the Company has deducted sales rebates in the amount of $1,408,448 and $790,792, respectively, from sales. For the nine months ended July 31, 2012 and 2011, the Company has deducted sales rebates in the amount of $6,061,247 and $4,995,396, respectively, from sales.

Revenue Recognition, Sales Returns [Policy Text Block]

n. Sales returns and allowances

The Company does not allow return of products except for products that were damaged during shipment. The total amount of returned product is less than 0.05% of total sales. The cost of damaged products is netted against sales and cost of goods sold, respectively.

Cost of Sales, Policy [Policy Text Block]

o. Cost of goods sold

Cost of goods sold primarily consists of direct and indirect manufacturing costs, including raw material, packaging material, production overhead costs, city construction tax and educational tax for the products sold.

Sales and Marketing [Policy Text Block]

p. Sales and marketing

Sales and marketing costs consist primarily of advertising and market promotion expenses, and other overhead expenses incurred by the Company’s sales and marketing personnel. Sales and marketing expenses are expensed as incurred and amounted to $1,832,351 and $1,559,863 during the three months ended July 31, 2012 and 2011, respectively, and $5,247,122 and $4,430,053 during the nine months ended July 31, 2012 and 2011, respectively.

Research and Development Expense, Policy [Policy Text Block]

q. Research and development

Research and development (“R&D”) consists primarily of cost of materials and overhead expenses incurred by research and development staff. Research and development costs are expensed as incurred. Research and development expenses amounted to $1,900,363 and $1,686,677 during the three months ended July 31, 2012 and 2011, respectively, and $2,928,875 and $2,585,863 for the nine months ended July 31, 2012 and 2011, respectively.

Compensation Related Costs, Policy [Policy Text Block]

r. Employee benefit costs

According to the PRC regulations on pension, a company contributes to a defined contribution retirement plan organized by municipal government in the province in which the CBP China was registered and all qualified employees are eligible to participate in the plan. Contributions to the plan are calculated at 22% of the employees’ salaries above a fixed threshold amount.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

s. Share-based compensation

For purposes of determining the variables used in the calculation of stock compensation expense under the provisions of FASB ASC Topic 505, “Equity” and FASB ASC Topic 718, “Compensation — Stock Compensation,” we perform an analysis of current market data and historical Company data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture rate. With the exception of the expected forfeiture rate, which is not an input, we use these estimates as variables in the Black-Scholes option pricing model. Depending upon the number of stock options granted, any fluctuations in these variables could have a material effect on the results presented in our condensed consolidated statement of income and comprehensive income. In addition, any differences between estimated forfeitures and actual forfeitures could also have a material impact on our condensed consolidated financial statements.

Taxation [Policy Text Block]

t. Taxation

Taxation on profits earned in the PRC has been calculated on the estimated assessable profits for the year at the rates of taxation prevailing in the PRC in which the Company operates after taking into effect the benefits from any special tax credits or “tax holidays” allowed in the country of operations.

The Company accounts for income tax under the provisions of FASB ASC Topic 740, “Income Taxes,” which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the condensed consolidated financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The Company does not have any long-term deferred tax assets or liabilities in the PRC that will exist once the tax holiday expires. The Company does not have any significant deferred tax asset or liabilities that relate to tax jurisdictions not covered by the tax holiday.

The Company does not accrue United States income tax on unremitted earnings from foreign operations, as it is the Company’s intention to invest these earnings in the foreign operations indefinitely.

Generally, years beginning after fiscal 2007, the Company is open to examination by PRC taxing authorities.  In the United States, we are open to examination from 2008 onward.

Enterprise income tax

On March 16, 2007, the PRC National People’s Congress passed the PRC Enterprise Income Tax Law (“New EIT Law”) which became effective on January 1, 2008.  Pursuant to the New EIT Law, a unified enterprise income tax rate of 25 percent and unified tax deduction standards will be applied consistently to both domestic-invested enterprises and foreign-invested enterprises.  However, the New EIT Law repealed most of the existing preferential tax rates and tax holidays.  A five-year transition period is allowed for enterprises that obtained preferential tax treatment under the prior tax regime.  Under the prior tax regime, foreign-invested enterprises were generally subject to a 30 percent federal tax rate plus a 3 percent local tax rate for a total tax rate of 33 percent.

CBP China secured preferential tax treatment in the jurisdiction where it conducts its manufacturing activity, where it was granted tax exemption of 10% from the government, for being a new and high-technology enterprise. The Company currently pays 15% enterprise income tax.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carry forwards, 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 of deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and noncurrent based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

A provision has not been made at July 31, 2012 and October 31, 2011 for U.S. or additional foreign withholding taxes on the undistributed earnings of foreign subsidiaries because it is the present intention of management to reinvest the undistributed earnings indefinitely in foreign operations. Generally, such earnings become subject to U.S. tax upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability on such undistributed earnings.

The Company recognizes that virtually all tax positions in the PRC are not free of some degree of uncertainty due to tax law and policy changes by the State. However, the Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current State officials.

Based on all known facts and circumstances and current tax law, the Company believes that the total amount of unrecognized tax benefits as of July 31, 2012 and October 31, 2011 are not material to its results of operations, financial condition or cash flows. The Company also believes that the total amount of unrecognized tax benefits as of July 31, 2012 and October 31, 2011, if recognized, would not have a material effect on its effective tax rate. The Company further believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax law and policy, that the unrecognized tax benefits will significantly increase or decrease over the next 12 months producing, individually or in the aggregate, a material effect on the Company’s results of operations, financial condition or cash flows.

Value added tax

The Provisional Regulations of The People’s Republic of China Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax is imposed on goods sold in or imported into the PRC and on processing, repair and replacement services provided within the PRC.

Value added tax payable in The People’s Republic of China is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of value added tax included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year to get the net value added tax payable in the period.

Comprehensive Income, Policy [Policy Text Block]

u. Comprehensive Income

Total comprehensive income is defined as all changes in shareholders’ equity during a period, other than those resulting from investments by and distributions to shareholders (i.e., issuance of equity securities and dividends).  Generally, for the Company, total comprehensive income equals net income plus or minus adjustments for currency translation. Total comprehensive income represents the activity for a period net of related tax and was $3,399,469 and $3,348,382 for the three months ended July 31, 2012 and 2011, respectively, and $24,232,468 and $23,553,607 for the nine months ended July 31, 2012 and 2011, respectively.

While total comprehensive income is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income as of the balance sheet date.  For the Company, AOCI is primarily the cumulative balance related to the currency adjustments and increased overall equity by $9,440,272 and $8,620,695 as of July 31, 2012 and October 31, 2011, respectively.

Earnings Per Share, Policy [Policy Text Block]

v. Earnings per share

Basic net earnings per common stock are computed by dividing net earnings applicable to common shareholders by the weighted-average number of common stock outstanding during the period. Diluted net earnings per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, using the treasury stock method, consisting of shares that might be issued upon exercise of common stock warrants. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

Basic earnings per share are based on the weighted-average number of shares of common stock outstanding.  Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding adjusted for the effects of common stock that may be issued as a result of the following types of potentially dilutive instruments:

– warrants,

– employee stock options, and

– other equity awards, which include long-term incentive awards.

The FASB ASC Topic 260, “Earnings per Share,” requires the Company to include additional shares in the computation of earnings per share, assuming dilution.  The additional shares included in diluted earnings per share represent the number of shares that would be issued if all of the Company’s outstanding dilutive instruments were converted into common stock.

Diluted earnings per share are based on the assumption that all dilutive options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options are assumed to be exercised at the time of issuance, and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Warrants [Policy Text Block]

w. Warrants

The Company evaluates its warrants on an ongoing basis considering the accounting guidance of FASB ASC Topic 825, which establishes standards for issuers of financial instruments with characteristics of both liabilities and equity related to the classification and measurement of those instruments. The warrants are evaluated considering the accounting guidance of FASB ASC Topic 815, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. 

In accordance with accounting guidance FASB ASC Topic 825, the Company accounts for financial instruments as a liability if it embodies an obligation to repurchase the issuer’s equity shares, or is indexed to such an obligation, and that requires or may require the issuer to settle the obligation by transferring assets. Freestanding financial instruments are financial instruments that are entered into separately and apart from any of the entity’s other financial instruments or equity transactions, or that is entered into in conjunction with some other transaction and is legally detachable and separately exercisable. The liability recorded is at fair market value per Black-Scholes option model.

On March 25, 2010, we issued warrants to purchase 160,000 shares of our common stock to a certain investor relation service provider. The warrants were recognized at fair value and were recorded as liability.

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INTANGIBLE ASSETS, NET (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Oct. 31, 2011	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Amortization Expense:	$ 180,631	$ 167,776	$ 541,380	$ 368,782

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Jul. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Capital Commitments In Fixed Asset [Table Text Block]

According to the agreement, we were exempted from lease payments for the underlying assets starting from May 1, 2010. 

Name of Fixed Asset	Purchase Date	Prepaid Amount		Remaining Amount		Total Amount
Ah City Pharmaceutical Plant	October 2009	$	23,712,791	$	1,580,853	$	25,293,644

Schedule Of Capital Commitments In Construction-In-Progress [Table Text Block]

The project is anticipated to be finished in the year of 2013.

Name of Construction-in-Progress	Start Date		Paid Amount		Remaining Amount		Projected Total Amount
Ah City Phase Two (Siberian Ginseng Product Industrialization)		January 2011	$	1,952,353	$	17,017,879	$	18,970,232

Schedule Of Capital Commitments In Purchased Intangible Assets [Table Text Block]

As of July 31, 2012, the Company has the following intangible assets which need our future capital commitments:

Name of Intangible Assets	Purchase Date	Paid Amount		Remaining Amount		Total Amount
Patent of Ingredients and preparation for Parkinson Drug	August 2011	$	1,359,533	$	1,359,533	$	2,719,066
Patent of Ingredients and preparation for XiangDousu	August 2011		1,343,725		1,343,725		2,687,450
Patent of Mudouye Extract	September 2011		1,897,023		1,897,023		3,794,046
Patent of Hongdoushan Extract	September 2011		2,387,088		2,387,088		4,774,176
Patent of Ingredients and preparation for Jizhi Pills	October 2011		2,134,151		2,134,151		4,268,302
Yichun Undergrowth Resource Exclusive Using right	January 2011		14,227,675		1,580,853		15,808,528
Total		$	23,349,195	$	10,702,373	$	34,051,568

Schedule Of Advertising Contract [Table Text Block]

On January 24, 2012, the Company entered into an advertising contract with Harbin Weishi Advertising Company to advertise its products from February 1, 2012 to January 31, 2013 as shown on the following table.

Advertising Contract	Contract Date	Paid Amount		Remaining Amount		Total Amount
			US$		US$		US$
Harbin TV Weishi Advertising Company	January 2012		3,604,344		3,604,344		7,208,688

Schedule Of Payment For Properties [Table Text Block]

The amounts to be paid in the future years are as follows:

Year		Payment for properties
2012	$	14,085,398
2013		18,820,051
Total	$	32,905,449

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TRADE RECEIVABLES, NET (Tables)

9 Months Ended

Jul. 31, 2012

Trade Receivable Net [Abstract]

Schedule Of Trade Receivables Net [Table Text Block]

The trade receivables amount included in the condensed consolidated balance sheets as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Trade receivables		18,832,775			23,704,241
Less: Sales rebates		(1,225,303	)		(1,681,721	)
Less: Allowance for doubtful accounts		(477,928	)		(474,195	)
Trade receivables, net		17,129,544			21,548,325

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OTHER RECEIVABLES, NET (Tables)

9 Months Ended

Jul. 31, 2012

Other Receivable Net [Abstract]

Schedule Of Other Receivables [Table Text Block]

The other receivables amount included in the condensed consolidated balance sheets as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Advanced Siberian Ginseng payment		-			6,631,157
Other receivables		568,545			577,554
Less: Allowance for doubtful accounts		(388,334	)		(385,301	)
Other receivables, net		180,211			6,823,410

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RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Jul. 31, 2012

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS

In December 2011, the FASB issued ASU No. 2011-10, “Property, Plant and Equipment (Topic 360): Derecognition of in Substance Real Estate – a Scope Clarification (a consensus of the FASB Emerging Issues Task Force). The ASU No. 2011-10 requires that a parent deconsolidate a subsidiary if the parent ceases to have a controlling financial interest in the subsidiary (except for a sale of in substance real estate). However, in situations other than a sale of in substance real estate, differing views exist in practice on whether the parent of an in substance real estate subsidiary must satisfy the criteria in Subtopic 360-20, Property, Plant, and Equipment – Real Estate Sales, in order to derecognize the in substance real estate. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In December 2011, the FASB issued ASU 2011-11 Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities: The amendments in this Update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. It is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In December 2011, the FASB issued ASU 2011-12 Comprehensive Income (Topic 220): In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. The amendments are being made to allow the Board time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the Board is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report 2 reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this ASU is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which allows an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. If an entity concludes, based on an evaluation of all relevant qualitative factors, that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, it will not be required to perform a quantitative impairment test for that asset. Entities are required to test indefinite-lived assets for impairment at least annually, and more frequently if indicators of impairment exist. This ASU will be effective for the Company on February 3, 2013, with early adoption permitted. The adoption of this ASU is not expected to have a significant effect on our results of operations or financial position.

Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements.

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INVENTORY, NET (Tables)

9 Months Ended

Jul. 31, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The inventory amounts included in the condensed consolidated balance sheets for as of July 31, 2012 and October 31, 2011 comprised of:

	July 31, 2012			October 31, 2011
	US$			US$
Raw materials		1,443,678			946,600
Packaging materials		3,782,804			1,896,169
Work-in-progress		8,740,389			3,205,862
Finished goods		1,404,006			1,436,767
Less: Inventory provision		(69,218	)		(68,678	)
Inventory, net		15,301,659			7,416,720

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RESERVES (Details Textual)	9 Months Ended
	Jul. 31, 2012
Minimum Percentage Of After Tax Profit Transfers To Statutory Surplus Reserve	10.00%
Maximum Percentage Of Registered Share Capital Up To Which Surplus Reserve Fund Is Created	50.00%
Maximum Loss Set Off Percentage Over Registered Capital In Surplus Reserve Fund	25.00%
Minimum Percentage Of After Tax Profit Transfers To Public Welfare Funds	5.00%

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (Tables)

9 Months Ended

Jul. 31, 2012

Fair Value Disclosures [Abstract]

Schedule Of Warrant Liability Measured At Fair Value [Table Text Block]

The Company had no assets measured at fair value at July 31, 2012 and October 31, 2011. The Company had the following warrant liability measured at fair value on July 31, 2012 and October 31, 2011:

	Fair value measurement
	Quoted prices in active markets of identical assets		Significant other observable inputs		Significant unobservable inputs
	(Level 1)		(Level 2)		(Level 3)
July 31, 2012 Warrants liability		-	$	1,086		-
October 31, 2011 Warrants liability		-	$	23,443		-

Schedule Of Fair Value Assumptions For Warrant Liability [Table Text Block]

The Company used the Black-Scholes valuation model to estimate the fair value of the Warrants.  The valuation of warrants liability on July 31, 2012 was based on the assumptions noted in the following table.

Expected volatility	68.96	%
Expected dividends	0	%
Expected term (in years)	0.65 years
Risk-free rate	0.30	%

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PROPERTY AND EQUIPMENT, NET (Details1) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Depreciation	$ 169,669	$ 97,648	$ 367,173	$ 286,379
General and Administrative Expense [Member]
Depreciation	75,251	5,365	84,185	12,899
Cost Of Sales [Member]
Depreciation	$ 94,418	$ 92,283	$ 282,988	$ 273,480

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (Details Textual)	Mar. 25, 2010
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	160,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	2.00
Class Of Warrant Or Rights Contractual Life	3 years

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Condensed Consolidated Balance Sheets (USD $)	Jul. 31, 2012	Oct. 31, 2011
ASSETS
Cash	$ 41,308,177	$ 15,283,583
Trade receivables, net	17,129,544	21,548,325
Inventory, net	15,301,659	7,416,720
Other receivables, net	180,211	6,823,410
Total current assets	73,919,591	51,072,038
Property and equipment, net	4,254,975	1,778,984
Intangible assets, net	16,739,514	17,146,700
Construction-in-progress	1,952,353	1,937,103
Deposits for properties	33,818,763	37,822,113
Deferred tax assets	140,322	139,226
Total assets	130,825,518	109,896,164
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	1,785,043	2,098,256
Tax payable	2,358,644	5,976,417
Accrued employee benefits	2,710,301	2,131,565
Warrant Liabilities	1,086	23,443
Total liabilities	6,855,074	10,229,681
Shareholders' equity
Preferred stock (no par value, 1,000,000 shares authorized; none issued and outstanding as of July 31, 2012 and October 31, 2011,respectively)	0	0
Common stock ($0.001 par value, 100,000,000 shares authorized; 37,239,536 issued and outstanding as of July 31, 2012 and October 31, 2011, respectively)	37,240	37,240
Additional paid-in capital	8,332,212	7,763,987
Common stock warrants	0	496,732
Reserves	3,372,697	3,372,697
Accumulated other comprehensive income	9,440,272	8,620,695
Retained earnings	102,788,023	79,375,132
Total shareholders' equity	123,970,444	99,666,483
Total liabilities and shareholders' equity	$ 130,825,518	$ 109,896,164

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DESCRIPTION OF THE BUSINESS (Details Textual)	Aug. 28, 2006 Harbin Renhuang Pharmaceutical Company Limited [Member]	Jul. 31, 2012 Harbin Renhuang Pharmaceutical Co. Ltd [Member]
Equity Method Investment, Ownership Percentage	100.00%	100.00%

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DESCRIPTION OF THE BUSINESS

9 Months Ended

Jul. 31, 2012

Description Of Business [Abstract]

Nature of Operations [Text Block]

NOTE 1 – DESCRIPTION OF THE BUSINESS

The accompanying condensed consolidated financial statements include the financial statements of China Botanic Pharmaceutical Inc. (“CBP”) and its subsidiaries.  CBP and its subsidiaries are collectively referred to as the “Company.”

CBP was incorporated in the State of Nevada on August 18, 1988, originally under the corporate name of Solutions, Incorporated.  It was inactive until August 16, 1996, when it changed its corporate name to Suarro Communications, Inc, and engaged in the business of providing internet based business services.  This line of business was discontinued in 2006, and CBP became a non-operating public company.  CBP underwent a number of corporate name changes as follows:

June 1997	ComTech Consolidation Group, Inc
February 1999	E-Net Corporation
May 1999	E-Net Financial Corporation
January 2000	E-Net.Com Corporation
February 2000	E-Net Financial.Com Corporation
January 2002	Anza Capital, Inc (“Anza”)
June 2006	Renhuang Pharmaceuticals, Inc.
October 2010	China Botanic Pharmaceutical Inc.

Effective August 28, 2006, CBP completed the acquisition of 100% ownership of Harbin Renhuang Pharmaceutical Company Limited, a company incorporated in the British Virgin Islands.  As a result, Harbin Renhuang Pharmaceutical Company Limited became a wholly owned subsidiary of CBP.

Harbin Renhuang Pharmaceutical Company Limited owns 100% of the registered capital of Harbin Renhuang Pharmaceutical Co. Ltd (“CBP China”).

The core activities of subsidiaries included in the condensed consolidated financial statements are as follow:

· Harbin Renhuang Pharmaceutical Company Limited – Investment holding.

· CBP China – Development, manufacturing and distribution of pharmaceutical products.

CBP China’s principal country of operations is the People’s Republic of China (the “PRC”) and maintains their accounting records in Renminbi (“RMB”).  Substantially all of the Company’s assets and operation are located in the PRC.

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RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	9 Months Ended		1 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jan. 31, 2011 Ah City Natural and Biopharmaceutical Plant [Member]	Oct. 31, 2009 Ah City Natural and Biopharmaceutical Plant [Member]
Related Party Transaction, Amounts of Transaction			$ 7,904,264	$ 25,293,644
Purchase of property and equipment	908,396	5,862	7,904,264	15,808,527
Due to Related Parties			$ 1,580,853
Nature of Common Ownership or Management Control Relationships				purchase agreement with Renhuang Stock, which 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"), to acquire the land use right

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CONSTRUCTION-IN-PROGRESS (Tables)

9 Months Ended

Jul. 31, 2012

Construction In Progress [Abstract]

Schedule Of Construction In Progress [Table Text Block]

The total capital expenses in Construction-in-progress as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012		October 31, 2011
	US$		US$
Ah City Pharmaceutical Plant phase two		1,952,353		1,937,103

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INCOME TAX EXPENSES (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Tax savings	$ 385,066	$ 303,004	$ 2,760,059	$ 2,102,619
Benefit per share:
Basic (in dollars per share)	$ 0.01	$ 0.01	$ 0.07	$ 0.06
Diluted (in dollars per share)	$ 0.01	$ 0.01	$ 0.07	$ 0.06

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ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

9 Months Ended

Jul. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 17 - ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

On March 25, 2010, the Company issued warrants (the “Warrants”) for 160,000 common shares to an investor relation service provider that have an exercise price of $2.00 per share and a contractual life of 3 years.  The terms of the Warrant agreement include the following factors that in accordance with FASB ASC Topic 815, requires that the Warrants be classified at their fair value to liabilities in each reporting period.

· The holder of the Warrants (the “Holder”) is entitled to the benefits of Rule 144 promulgated under the Securities Act of 1933, as amended and any other rule or regulation of the SEC that may at any time permit the Holder to sell securities of the Company to the public without registration.  Noncompliance with such rules and regulations could result in the Company having to settle the Warrant obligation in cash.

· The exercise price and number of shares issuable upon exercise of the Warrants (the “Warrant Shares”) are subject to adjustment for standard dilutive events, including the issuance of common stock, or securities convertible into or exercisable for shares of common stock, that will adversely affect the Holder’s rights under the Warrants.  There were no dilutive events for the three and nine months ended July 31, 2012 and 2011, which would have resulted in an adjustment to the exercise price or number of Warrant Shares.

The Company had no assets measured at fair value at July 31, 2012 and October 31, 2011. The Company had the following warrant liability measured at fair value on July 31, 2012 and October 31, 2011:

	Fair value measurement
	Quoted prices in active markets of identical assets		Significant other observable inputs		Significant unobservable inputs
	(Level 1)		(Level 2)		(Level 3)
July 31, 2012 Warrants liability		-	$	1,086		-
October 31, 2011 Warrants liability		-	$	23,443		-

The Company used the Black-Scholes valuation model to estimate the fair value of the Warrants.  The valuation of warrants liability on July 31, 2012 was based on the assumptions noted in the following table.

Expected volatility	68.96	%
Expected dividends	0	%
Expected term (in years)	0.65 years
Risk-free rate	0.30	%

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DEPOSITS FOR PROPERTIES (Tables)

9 Months Ended

Jul. 31, 2012

Deposit [Abstract]

Schedule Of Deposits For Properties [Table Text Block]

Deposits for properties as of July 31, 2012 and October 31, 2011 were listed as following:

	July 31, 2012							October 31, 2011
Name of Asset	Prepaid Amount		Rent expenses deducted			Net deposits		Prepaid Amount		Rent expenses deducted			Net deposits
Ah City Pharmaceutical Plant	$	23,712,791	$	(1,811,457	)	$	21,901,334	$	23,527,566	$	(1,209,375	)	$	22,318,191
Office Floor		3,032,439		(236,530	)		2,795,909		4,212,253		(268,209	)		3,944,044
Product Patents		9,121,520		-			9,121,520		11,559,878		-			11,559,878
Total	$	35,866,750	$	(2,047,987	)	$	33,818,763	$	39,299,697	$	(1,477,584	)	$	37,822,113

Schedule Of Forgiven Rental Expenses [Table Text Block]

Forgiven rental expenses incurred and recognized to the condensed consolidated financial statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011, respectively, were listed as following:

	For the three months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		197,503		195,661
Two Office Floor		33,805		-
Total		231,308		195,661

	For the nine months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		591,949		572,065
Two Office Floor		168,703		-
Total		760,652		572,065

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OPTIONS AND WARRANTS

9 Months Ended

Jul. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 19 - OPTIONS AND WARRANTS

Share-based compensation amounted to $22,877 and $36,182 for the three months ended July 31, 2012 and 2011, respectively, and $71,493 and $96,981, respectively, for the nine months ended July 31, 2012 and 2011.

(1)  2003 Omnibus Plan

On February 28, 2003, our board of directors approved the Renhuang Pharmaceuticals, Inc. 2003 Omnibus Securities Plan (the “2003 Plan”), which was approved by our shareholders on April 11, 2003. The 2003 Plan offers selected employees, directors, and consultants opportunities to acquire our common stock, and serves to encourage such persons to remain employed by us and to attract new employees. The 2003 Plan allows for the award of stock and options, up to 25,000 (after giving effect to the 1-for-30 reverse stock split in 2006) shares of our common stock. On May 1, of each year, the number of shares in the 2003 Securities Plan is automatically adjusted to an amount equal to ten percent of our outstanding stock on October 31, of the immediately preceding year. As of July 31, 2012 and October 31, 2011, there were 3,723,954 shares available for issuing subject to the 2003 Omnibus Securities Plan.

a) On December 14, 2010, we appointed Mr. Weiqiu Dong as our chief financial officer. Based on the employment agreement, Mr. Dong received, on December 14, 2010, an option to purchase 200,000 shares of the Company's common stock with an exercise price of $2.15 per share, under the 2003 Omnibus Plan. The option vests 60,000 shares on the first anniversary of the date of grant and 70,000 shares on each of the second and third anniversaries of the date of grant. The Option is conditioned upon continued employment on such date, and has a contractual life of 3 years. 

The fair value of the option award is estimated on the date of grant using the Black-Scholes option valuation model to be $259,251, of which $20,040 and $62,982 were recorded as compensation expenses for the three and nine months ended July 31, 2012. The valuation was based on the assumptions noted in the following table.

Expected volatility	96.46	%
Expected dividends	0.00	%
Expected term (in years)	3 years
Risk-free rate	1.06	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant.  The dividend yield on our common stock is assumed to be zero since we do not pay dividends and have no current plans to pay them in the future.  The market price volatility of our common stock was based on historical volatility since December 13, 2009.  Our methodology is consistent with prior period volatility assumptions.  The expected life of the options is based upon our anticipated expectations of exercise behavior since no options have been exercised in the past to provide relevant historical data.

 b) On October 15, 2011, we entered into an independent director agreement with Mr. Pan, who became our director on October 15, 2011. The agreement provides that Mr. Pan, the Chair of our Audit Committee, will receive (i) a fee of $2,500 per month, (ii) options to purchase 50,000 shares of common stock under the 2003 Plan, at an exercise price of $0.80 per share, which is equal to the closing price of the Company’s common stock on October 15, 2011, subject to vesting on a quarterly basis (4,166 shares of option to vest on the first 11 quarter anniversaries of the grant and 4,174 shares of option to vest on the 12th quarter anniversary of the grant with the initial 4,166 shares of option vesting to commence on January 15, 2012), and with all vesting conditional upon continued service as a director of the Company as of each such anniversary; and (iii) a reimbursement of out-of pocket expenses incidental to his services on the Board. The agreement expires on the earlier of (i) the date Mr. Pan ceases to be a member of the board, or (ii) the date of termination of the Agreement.

The fair value of the option award is estimated on the date of grant using the Black-Scholes option valuation model to be $34,042, of which $2,837 and $8,511 were recorded as compensation expenses for the three and nine months ended July 31, 2012.  The valuation was based on the assumptions noted in the following table.

Expected volatility	127.76	%
Expected dividends	0.00	%
Expected term (in years)	3 years
Risk-free rate	1.12	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant.  The dividend yield on our common stock is assumed to be zero since we do not pay dividends and have no current plans to pay them in the future.  The market price volatility of our common stock was based on historical volatility since October 14, 2010.  Our methodology is consistent with prior period volatility assumptions.  The expected life of the options is based upon our anticipated expectations of exercise behavior since no options have been exercised in the past to provide relevant historical data.

(2)  2007 Non-Qualified Company Stock Grant and Option Plan

On March 19, 2007, our board of directors approved the 2007 Non-Qualified Company Stock Grant and Option Plan (the “2007 Plan”).   The 2007 Plan is intended to serve as an incentive to and to encourage stock ownership by our  directors, officers, and employees, and certain persons rendering service to us, so that such persons may acquire or increase their proprietary interest in our success, and to encourage them to remain in our service.  Under the 2007, up to 200,000 shares of our common stock may be subject to options.

(3)  Option Activity and Status

A summary of option activity and movement during the three and nine months ended at July 31, 2012 and 2011, respectively, are as follow:

	Options		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term
For the three months ended July 31, 2012
Outstanding at May 1, 2012		284,998	$	1.96	$	381,886		4.15
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2012		284,998	$	1.96	$	381,886		3.90
For the three months ended July 31, 2011
Outstanding at May 1, 2011		270,000	$	2.26	$	426,083		4.81
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2011		270,000	$	2.26	$	426,083		4.62

	Options		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term
For the nine months ended July 31, 2012
Outstanding at November 1, 2011		284,998	$	1.96	$	381,886		4.64
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2012		284,998	$	1.96	$	381,886		3.90
For the nine months ended July 31, 2011
Outstanding at November 1, 2010		70,000	$	2.57	$	166,832		2.45
Granted		200,000		2.15		259,251		5.38
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at July 31, 2011		270,000	$	2.26	$	426,083		4.62

A summary of the status of the Company’s non-vested options as of July 31, 2012 and 2011, respectively, and movements during the three and nine months then ended are as follow:

	Options			Weighted average granted date fair value
For the three months ended July 31, 2012
Non-vested at May 1, 2012		181,668		$	1.60
Granted		-			-
Vested		(4,166	)		0.68
Forfeited or expired		-			-
Non-vested at July 31, 2012		177,502		$	1.17
For the three months ended July 31, 2011
Non-vested at May 1, 2011		240,835		$	2.22
Granted		-			-
Vested		-			-
Forfeited or expired		-			-
Non-vested at July 31, 2011		240,835		$	2.22

	Options			Weighted average granted date fair value
For the nine months ended July 31, 2012
Non-vested at November 1, 2011		250,000		$	1.17
Granted		-			-
Vested		(72,498	)		1.19
Forfeited or expired		-			-
Non-vested at July 31, 2012		177,502		$	1.17
For the nine months ended July 31, 2011
Non-vested at November 1, 2010		58,334		$	2.57
Granted		200,000			2.15
Vested		(17,499	)		2.57
Forfeited or expired		-			-
Non-vested at July 31, 2011		240,835		$	2.22

The unrecognized compensation costs related to non-vested share-based compensation granted under the Company’s option plan were $142,931 and $333,836 on July 31, 2012 and 2011, respectively.

(4) Warrants

A summary of warrant activity and movement during the three and nine months ended at July 31, 2012 and 2011, respectively, are as follow:

	Warrants		Average exercise price
For the three months ended July 31, 2012
Outstanding warrants at May 1, 2012		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		1,071,428		0.88
Outstanding warrants at July 31, 2012		160,000	$	2.00
For the three months ended July 31, 2011
Outstanding warrants at May 1, 2011		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		-		-
Outstanding warrants at July 31, 2011		1,231,428	$	1.03

	Warrants		Average exercise price
For the nine months ended July 31, 2012
Outstanding warrants at November 1, 2011		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		1,071,428		0.88
Outstanding warrants at July 31, 2012		160,000	$	2.00
For the nine months ended July 31, 2011
Outstanding warrants at November 1, 2010		1,231,428	$	1.03
Warrants granted		-		-
Exercised		-		-
Expired/cancelled		-		-
Outstanding warrants at July 31, 2011		1,231,428	$	1.03

Information regarding the warrants outstanding at July 31, 2012 and 2011 are summarized as below:

	Warrants Outstanding		Weighted average  remaining contractual  life(years)		Weighted average exercise price
Warrants outstanding at July 31, 2012		160,000		0.65		2.00
		1,071,428		0.79	$	0.88
		160,000		1.65		2.00
Warrants outstanding at July 31, 2011		1,231,428		0.90	$	1.03

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EARNINGS PER SHARE (Details Textual)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	284,998	270,000	284,998	270,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	160,000	160,000	160,000	160,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jul. 31, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the result of operations for the three and nine months ended July 31, 2012 and 2011. The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes for the year ended October 31, 2011 included in the Company’s Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year due to seasonal and other factors.

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s condensed consolidated financial statements. The condensed consolidated financial statements and notes are representation of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the consolidated financial statements for July 31, 2012 and October 31, 2011.

a. Basis of presentation of financial statements

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and are expressed in terms of US dollars.

The Company operates in one operating segment in accordance with accounting guidance FASB ASC Topic 280, “Segment Reporting”. Our CEO has been identified as the chief operating decision maker as defined by FASB ASC Topic 280.

b. Principles of consolidation

The condensed consolidated financial statements include the financial statements of CBP and its subsidiaries.

All inter-company transactions and balances have been eliminated in consolidation.

FASB ASC Topic 810, “Consolidation”, requires noncontrolling minority interests to represent the portion of earnings that is not within the parent company’s control. The noncontrolling minority interests are required to be reported as equity instead of as a liability on the balance sheet.  In addition this statement requires net income from noncontrolling minority interest to be shown separately on the condensed consolidated statements of income and comprehensive income. The Company has no noncontrolling interest as of July 31, 2012 and October 31, 2011.

c. Use of estimates

The preparation of these condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affected the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of net sales and expenses during the reported periods.

Significant estimates and assumptions by management include, among others, uncollectible accounts receivable, slow moving, obsolete and/or damaged inventory, the carrying amount of property and equipment and intangible assets, reserve for employee benefit obligations, stock warrant valuation, share-based compensation, noncash rental expense and other uncertainties. Actual results may differ from these estimates.  The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

d. Foreign currency translation

The Company’s principal country of operations is in PRC. The financial position and results of operations of the subsidiaries are determined using the local currency (“Renminbi” or “RMB”) as the functional currency.

Translation of amounts from RMB into US dollars for reporting purposes is performed by translating the results of operations denominated in foreign currency at the weighted average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the market rate of exchange ruling at that date. The registered equity capital denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. All translation adjustments resulting from the translation of the financial statements into the reporting currency (US dollars) are reported as a component of accumulated other comprehensive income in shareholders’ equity.

As of July 31, 2012 and October 31, 2011, the exchange rates were RMB 6.33 and RMB 6.38, respectively. For the three months ended July 31, 2012 and 2011, the average exchange rates were RMB 6.33 and RMB 6.48, and the net income translation adjustments totaled $143,931 and $828,537, respectively. For the nine months ended July 31, 2012 and 2011, the average exchange rates were RMB 6.34 and RMB 6.56, and the net income translation adjustments totaled $819,577 and $3,004,411, respectively.

e. Cash

There are no restriction to cash at July 31, 2012 and October 31, 2011. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by the Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance.  Given the current economic environment and risks in the banking industry, there is a risk that deposits may not be readily available.

f. Trade receivables, net

Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivable payment terms vary and amounts due from customers are stated in the condensed consolidated financial statements net of an allowance for doubtful accounts and sales rebates. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivables.  Trade receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time the trade receivable is past due, the Company’s previous loss history, the counter party’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off receivables when they are deemed uncollectible, and payments subsequently received on such trade receivables are credited to the allowance for doubtful accounts.  There were no trade receivables write offs for the three and nine months ended July 31, 2012 and 2011. The Company does not have any off-balance sheet credit exposure related to its customers.

g. Inventory, net

Inventory consists of raw materials, packaging materials, work-in-progress and finished goods and is valued at the lower of cost or market value. The value of inventory is determined using the weighted average cost method and includes any related production overhead costs incurred in bringing the inventory to their present location and condition. Overhead costs included in finished goods include, direct labor cost and other costs directly applicable to the manufacturing process.

The Company estimates an inventory provision for excessive, slow moving and obsolete inventories as well as inventory whose carrying value is in excess of net realizable value.  Inventory amounts are reported net of such allowances.  There were no inventory write offs for the three and nine months ended July 31, 2012 and 2011.

h. Property and equipment, net

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Depreciation is provided over the estimated useful lives of the related assets using the straight-line method.  The estimated useful lives for significant property and equipment categories are as follows:

Machinery and equipment	10 years
Office equipment and furnishings	5-10 years
Motor vehicles	5-10 years
Office buildings	30 years

i. Intangible assets, net

Intangible assets consist of purchased patents and resource using right. Intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets with a finite useful life are amortized using the straight-line method over valid periods varied from 10 to 30 years, which is the estimated economic life of the intangible assets.

j. Accounting for the impairment of long-lived assets

The Company’s long-lived assets and other assets (consisting of property and equipment) are reviewed for impairment in accordance with the guidance of the FASB ASC Topic 360, “Property, Plant, and Equipment,” FASB ASC Topic 350, "Intangibles - Goodwill and Others," and FASB ASC Topic 205 “Presentation of Financial Statements.”  The Company tests for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows.  Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial positions.  Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of July 31, 2012 and October 31, 2011, the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances that demand for the Company’s products or services will continue, which could result in an impairment of long-lived assets in the future.

k. Fair value of financial instruments

The Company applies the provisions of accounting guidance, FASB ASC Topic 825, “Financial Instruments,” that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.  As of July 31, 2012 and October 31, 2011 the carrying value of cash, trade receivables, other receivables and accounts payable, approximated their fair value. All derivatives are recorded at fair value evaluated based on Black-Scholes option model.

l. Fair value measurements

The FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements.

Various inputs are considered when determining the fair value of the Company’s financial instruments. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.  These inputs are summarized in the three broad levels listed below.

Ÿ	Level 1 – observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets.
Ÿ	Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.).
Ÿ	Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of financial instruments).

The Company’s adoption of FASB ASC Topic 825 did not have a material impact on the Company’s condensed consolidated financial statements.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared.

The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment.

m. Revenue recognition

Revenue is recognized in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition,” which states that revenue should be recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the service has been rendered; (3) the selling price is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured.

Interest income is recognized when earned, taking into account the average principal amounts outstanding and the interest rates applicable.

The Company provided annual sales rebates to its distributors based upon sales volumes.  Sales rebates are recorded as a current liability at the time of the sale based upon the Company’s estimates of whether each customer would be entitled to rebates for the period.  At quarter end, the accrued rebate amount is adjusted to the actual amount earned and reclassified to trade receivables in accordance with legal right of offset.  Sales rebates were deducted from sales in the accompanying condensed consolidated statements of income and comprehensive income. Sales rebates are calculated based on terms specified in contracts with individual distributors.

As of July 31, 2012 and October 31, 2011, the Company has accrued $1,225,303 and $1,681,721, respectively, for sales rebates, which offset the balance of trade receivables.  For the three months ended July 31, 2012 and 2011, the Company has deducted sales rebates in the amount of $1,408,448 and $790,792, respectively, from sales. For the nine months ended July 31, 2012 and 2011, the Company has deducted sales rebates in the amount of $6,061,247 and $4,995,396, respectively, from sales. 

n. Sales returns and allowances

The Company does not allow return of products except for products that were damaged during shipment. The total amount of returned product is less than 0.05% of total sales. The cost of damaged products is netted against sales and cost of goods sold, respectively.

o. Cost of goods sold

Cost of goods sold primarily consists of direct and indirect manufacturing costs, including raw material, packaging material, production overhead costs, city construction tax and educational tax for the products sold.

p. Sales and marketing

Sales and marketing costs consist primarily of advertising and market promotion expenses, and other overhead expenses incurred by the Company’s sales and marketing personnel. Sales and marketing expenses are expensed as incurred and amounted to $1,832,351 and $1,559,863 during the three months ended July 31, 2012 and 2011, respectively, and $5,247,122 and $4,430,053 during the nine months ended July 31, 2012 and 2011, respectively.

q. Research and development

Research and development (“R&D”) consists primarily of cost of materials and overhead expenses incurred by research and development staff. Research and development costs are expensed as incurred. Research and development expenses amounted to $1,900,363 and $1,686,677 during the three months ended July 31, 2012 and 2011, respectively, and $2,928,875 and $2,585,863 for the nine months ended July 31, 2012 and 2011, respectively.

r. Employee benefit costs

According to the PRC regulations on pension, a company contributes to a defined contribution retirement plan organized by municipal government in the province in which the CBP China was registered and all qualified employees are eligible to participate in the plan. Contributions to the plan are calculated at 22% of the employees’ salaries above a fixed threshold amount.

s. Share-based compensation

For purposes of determining the variables used in the calculation of stock compensation expense under the provisions of FASB ASC Topic 505, “Equity” and FASB ASC Topic 718, “Compensation — Stock Compensation,” we perform an analysis of current market data and historical Company data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture rate. With the exception of the expected forfeiture rate, which is not an input, we use these estimates as variables in the Black-Scholes option pricing model. Depending upon the number of stock options granted, any fluctuations in these variables could have a material effect on the results presented in our condensed consolidated statement of income and comprehensive income. In addition, any differences between estimated forfeitures and actual forfeitures could also have a material impact on our condensed consolidated financial statements.

t. Taxation

Taxation on profits earned in the PRC has been calculated on the estimated assessable profits for the year at the rates of taxation prevailing in the PRC in which the Company operates after taking into effect the benefits from any special tax credits or “tax holidays” allowed in the country of operations.

The Company accounts for income tax under the provisions of FASB ASC Topic 740, “Income Taxes,” which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the condensed consolidated financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The Company does not have any long-term deferred tax assets or liabilities in the PRC that will exist once the tax holiday expires. The Company does not have any significant deferred tax asset or liabilities that relate to tax jurisdictions not covered by the tax holiday.

The Company does not accrue United States income tax on unremitted earnings from foreign operations, as it is the Company’s intention to invest these earnings in the foreign operations indefinitely.

Generally, years beginning after fiscal 2007, the Company is open to examination by PRC taxing authorities.  In the United States, we are open to examination from 2008 onward.

Enterprise income tax

On March 16, 2007, the PRC National People’s Congress passed the PRC Enterprise Income Tax Law (“New EIT Law”) which became effective on January 1, 2008.  Pursuant to the New EIT Law, a unified enterprise income tax rate of 25 percent and unified tax deduction standards will be applied consistently to both domestic-invested enterprises and foreign-invested enterprises.  However, the New EIT Law repealed most of the existing preferential tax rates and tax holidays.  A five-year transition period is allowed for enterprises that obtained preferential tax treatment under the prior tax regime.  Under the prior tax regime, foreign-invested enterprises were generally subject to a 30 percent federal tax rate plus a 3 percent local tax rate for a total tax rate of 33 percent.

CBP China secured preferential tax treatment in the jurisdiction where it conducts its manufacturing activity, where it was granted tax exemption of 10% from the government, for being a new and high-technology enterprise. The Company currently pays 15% enterprise income tax.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carry forwards, 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 of deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and noncurrent based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

A provision has not been made at July 31, 2012 and October 31, 2011 for U.S. or additional foreign withholding taxes on the undistributed earnings of foreign subsidiaries because it is the present intention of management to reinvest the undistributed earnings indefinitely in foreign operations. Generally, such earnings become subject to U.S. tax upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability on such undistributed earnings.

The Company recognizes that virtually all tax positions in the PRC are not free of some degree of uncertainty due to tax law and policy changes by the State. However, the Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current State officials.

Based on all known facts and circumstances and current tax law, the Company believes that the total amount of unrecognized tax benefits as of July 31, 2012 and October 31, 2011 are not material to its results of operations, financial condition or cash flows. The Company also believes that the total amount of unrecognized tax benefits as of July 31, 2012 and October 31, 2011, if recognized, would not have a material effect on its effective tax rate. The Company further believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax law and policy, that the unrecognized tax benefits will significantly increase or decrease over the next 12 months producing, individually or in the aggregate, a material effect on the Company’s results of operations, financial condition or cash flows.

Value added tax

The Provisional Regulations of The People’s Republic of China Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax is imposed on goods sold in or imported into the PRC and on processing, repair and replacement services provided within the PRC.

Value added tax payable in The People’s Republic of China is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of value added tax included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year to get the net value added tax payable in the period.

u. Comprehensive Income

Total comprehensive income is defined as all changes in shareholders’ equity during a period, other than those resulting from investments by and distributions to shareholders (i.e., issuance of equity securities and dividends).  Generally, for the Company, total comprehensive income equals net income plus or minus adjustments for currency translation. Total comprehensive income represents the activity for a period net of related tax and was $3,399,469 and $3,348,382 for the three months ended July 31, 2012 and 2011, respectively, and $24,232,468 and $23,553,607 for the nine months ended July 31, 2012 and 2011, respectively.

While total comprehensive income is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income as of the balance sheet date.  For the Company, AOCI is primarily the cumulative balance related to the currency adjustments and increased overall equity by $9,440,272 and $8,620,695 as of July 31, 2012 and October 31, 2011, respectively.

v. Earnings per share

Basic net earnings per common stock are computed by dividing net earnings applicable to common shareholders by the weighted-average number of common stock outstanding during the period. Diluted net earnings per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, using the treasury stock method, consisting of shares that might be issued upon exercise of common stock warrants. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

Basic earnings per share are based on the weighted-average number of shares of common stock outstanding.  Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding adjusted for the effects of common stock that may be issued as a result of the following types of potentially dilutive instruments:

– warrants,

– employee stock options, and

– other equity awards, which include long-term incentive awards.

The FASB ASC Topic 260, “Earnings per Share,” requires the Company to include additional shares in the computation of earnings per share, assuming dilution.  The additional shares included in diluted earnings per share represent the number of shares that would be issued if all of the Company’s outstanding dilutive instruments were converted into common stock.

Diluted earnings per share are based on the assumption that all dilutive options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options are assumed to be exercised at the time of issuance, and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

w. Warrants

The Company evaluates its warrants on an ongoing basis considering the accounting guidance of FASB ASC Topic 825, which establishes standards for issuers of financial instruments with characteristics of both liabilities and equity related to the classification and measurement of those instruments. The warrants are evaluated considering the accounting guidance of FASB ASC Topic 815, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. 

In accordance with accounting guidance FASB ASC Topic 825, the Company accounts for financial instruments as a liability if it embodies an obligation to repurchase the issuer’s equity shares, or is indexed to such an obligation, and that requires or may require the issuer to settle the obligation by transferring assets. Freestanding financial instruments are financial instruments that are entered into separately and apart from any of the entity’s other financial instruments or equity transactions, or that is entered into in conjunction with some other transaction and is legally detachable and separately exercisable. The liability recorded is at fair market value per Black-Scholes option model.

On March 25, 2010, we issued warrants to purchase 160,000 shares of our common stock to a certain investor relation service provider. The warrants were recognized at fair value and were recorded as liability.

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Condensed Consolidated Balance Sheets [Parenthetical] (USD $)	Jul. 31, 2012	Oct. 31, 2011
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,239,536	37,239,536
Common stock, shares outstanding	37,239,536	37,239,536

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DEPOSITS FOR PROPERTIES

9 Months Ended

Jul. 31, 2012

Deposit [Abstract]

Deposit [Text Block]

NOTE 12 - DEPOSITS FOR PROPERTIES

Deposits for properties as of July 31, 2012 and October 31, 2011 were listed as following:

	July 31, 2012							October 31, 2011
Name of Asset	Prepaid Amount		Rent expenses deducted			Net deposits		Prepaid Amount		Rent expenses deducted			Net deposits
Ah City Pharmaceutical Plant	$	23,712,791	$	(1,811,457	)	$	21,901,334	$	23,527,566	$	(1,209,375	)	$	22,318,191
Office Floor		3,032,439		(236,530	)		2,795,909		4,212,253		(268,209	)		3,944,044
Product Patents		9,121,520		-			9,121,520		11,559,878		-			11,559,878
Total	$	35,866,750	$	(2,047,987	)	$	33,818,763	$	39,299,697	$	(1,477,584	)	$	37,822,113

Forgiven rental expenses incurred and recognized to the condensed consolidated financial statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011, respectively, were listed as following:

	For the three months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		197,503		195,661
Two Office Floor		33,805		-
Total		231,308		195,661

	For the nine months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		591,949		572,065
Two Office Floor		168,703		-
Total		760,652		572,065

On April 10, 2010, the Company through its wholly own subsidiary, CBP China, entered into a Purchase Agreement with Hongxiangmingyuan of Heilongjiang Yongtai Company, to acquire two office floors for a total consideration of $6,064,878.  Pursuant to the Purchase Agreement, a payment of $4,245,415 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet.  Pursuant to the Purchase Agreement, a final payment of $1,819,463 was made in May 2012. The title of one office floor was transferred in May 2012, the Company reclassified $2,829,699 from deposits to property and equipment and started depreciation over the estimated useful life of the asset. The other office floor is still in the process of title transfer.

Based on the purchase agreement between CBP China and Hongxiangmingyuan, the Company does not pay any rental fees before the title is transferred. Rental expenses related to this lease incurred and expensed before transfer of title 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.

In the fourth quarter of our fiscal year 2011, we entered into contracts to purchase Patent of Ingredients and preparation for Parkinson Drug, Patent of Ingredients and preparation for Xiangdousu, etc. and deposited $11,559,878 towards the purchase. The Company decided not to purchase two other patents and received $2,509,607 amount of deposit.

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DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Jul. 31, 2012	Sep. 04, 2012
Entity Registrant Name	China Botanic Pharmaceutical
Entity Central Index Key	0000926844
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	cbp
Entity Common Stock, Shares Outstanding		37,239,536
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2012
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012

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DEFERRED TAX ASSETS

9 Months Ended

Jul. 31, 2012

Deferred Tax Assets [Abstract]

Deferred Tax Assets [Text Block]

NOTE 13 - DEFERRED TAX ASSETS

Deferred tax assets as of July 31, 2012 and October 31, 2011 were listed as following:

Deferred tax assets as of	Allowance for doubtful and inventory provision		Temporary difference		Income tax rate			Deferred tax assets
July 31, 2012	$	935,480	$	935,480		15	%	$	140,322
October 31, 2011	$	928,174	$	928,174		15	%	$	139,226

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OPTIONS AND WARRANTS (Details 5) (USD $)	9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Apr. 30, 2012	Oct. 31, 2011	Apr. 30, 2011	Oct. 31, 2010
Warrants, Outstanding	160,000	1,231,428	1,231,428	1,231,428	1,231,428	1,231,428
Weighted average remaining contractual life (years), Warrants Outstanding	7 months 24 days	10 months 24 days
Weighted average exercise price, Warrants Outstanding	$ 2.00	$ 1.03
Warrant One [Member]
Warrants, Outstanding	1,071,428
Weighted average remaining contractual life (years), Warrants Outstanding	9 months 14 days
Weighted average exercise price, Warrants Outstanding	$ 0.88
Warrant Two [Member]
Warrants, Outstanding	160,000
Weighted average remaining contractual life (years), Warrants Outstanding	1 year 7 months 24 days
Weighted average exercise price, Warrants Outstanding	$ 2.00

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Condensed Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Sales, net	$ 15,076,663	$ 12,376,352	$ 66,239,139	$ 53,875,101
Cost of goods sold	6,190,688	4,908,939	27,399,579	21,450,356
Gross profit	8,885,975	7,467,413	38,839,560	32,424,745
Operating and administrative expenses:
Sales and marketing	1,832,351	1,559,863	5,247,122	4,430,053
General and administrative	1,365,805	1,233,288	3,221,192	2,744,932
Research and development	1,900,363	1,686,677	2,928,875	2,585,863
Total operating expenses	5,098,519	4,479,828	11,397,189	9,760,848
Income from operations	3,787,456	2,987,585	27,442,371	22,663,897
Other income:
Interest income, net	44,153	34,144	109,079	81,286
Income before income tax expenses	3,831,609	3,021,729	27,551,450	22,745,183
Income tax expenses	576,071	501,884	4,138,559	2,195,987
Net income	3,255,538	2,519,845	23,412,891	20,549,196
Other comprehensive income:
Unrealized currency translation adjustments	143,931	828,537	819,577	3,004,411
Total comprehensive income	$ 3,399,469	$ 3,348,382	$ 24,232,468	$ 23,553,607
Earnings per common stock- Basic (in dollars per share)	$ 0.09	$ 0.07	$ 0.63	$ 0.55
Earnings per common stock - Diluted (in dollars per share)	$ 0.09	$ 0.07	$ 0.63	$ 0.54
Weighted average common stock outstanding
Basic (in shares)	37,239,536	37,239,536	37,239,536	37,239,536
Diluted (in shares)	37,239,536	37,473,911	37,239,536	37,749,587

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INVENTORY, NET

9 Months Ended

Jul. 31, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 7 - INVENTORY, NET

The inventory amounts included in the condensed consolidated balance sheets for as of July 31, 2012 and October 31, 2011 comprised of:

	July 31, 2012			October 31, 2011
	US$			US$
Raw materials		1,443,678			946,600
Packaging materials		3,782,804			1,896,169
Work-in-progress		8,740,389			3,205,862
Finished goods		1,404,006			1,436,767
Less: Inventory provision		(69,218	)		(68,678	)
Inventory, net		15,301,659			7,416,720

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OTHER RECEIVABLES, NET

9 Months Ended

Jul. 31, 2012

Other Receivable Net [Abstract]

Other Receivable Net [Text Block]

NOTE 6 - OTHER RECEIVABLES, NET

The other receivables amount included in the condensed consolidated balance sheets as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Advanced Siberian Ginseng payment		-			6,631,157
Other receivables		568,545			577,554
Less: Allowance for doubtful accounts		(388,334	)		(385,301	)
Other receivables, net		180,211			6,823,410

The Company advanced Siberian Ginseng payment to two of our employees in our Dongfanghong branch, Mr. Zhao, Fengwu and Mr. Deng, Fujie before October 31, 2011 for the purchasing of Siberian Ginseng raw material in the Siberian Ginseng harvest season. There was no such advance at July 31, 2012.

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PREFERRED STOCK, COMMON STOCK AND EQUITY TRANSACTIONS

9 Months Ended

Jul. 31, 2012

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 18 - PREFERRED STOCK, COMMON STOCK AND EQUITY TRANSACTIONS

(1)  Preferred Stock

The Company’s articles of incorporation provide that our board of directors will be authorized to issue from time to time, without further stockholder approval, up to 1,000,000 additional shares of preferred stock in one or more series and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of each series, including the dividend rights, dividend rates, conversion rights, voting rights, rights of redemption, including sinking fund provisions, redemption price or prices, liquidation preferences and the number of shares constituting any series or designations of any series. Such shares of preferred stock could have preferences over our common stock with respect to dividends and liquidation rights. As of July 31, 2012 and October 31, 2011, there was no preferred stock outstanding.

(2) Common Stock and Equity Transactions

On May 15, 2009, the Company issued an aggregate of 2,142,856 shares of the Company’s common stock and 1,071,428 warrants with an exercise price of $0.875 per share to Allied Merit International Investments, Inc. and Griffin Ventures Ltd. Total consideration of the issuance was $ 1,500,000. The warrants expired on May 15, 2012 and there was no warrants exercised by the expire date.

The fair value of the warrants is estimated on the date of grant using the Black-Scholes option valuation model to be $496,732. The valuation was based on the assumptions noted in the following table.

Expected volatility	175.80	%
Expected dividends	0	%
Expected term (in years)	3 years
Risk-free rate	1.375	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the warrants at the time of grant.  The dividend yield on our common stock is assumed to be zero since we do not pay dividends and have no current plans to pay them in the future.  The market price volatility of our common stock was based on historical volatility since May 15, 2008.  Our methodology is consistent with prior period volatility assumptions.  The expected life of the warrants is based upon our anticipated expectations of exercise behavior since no options have been exercised in the past to provide relevant historical data.

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INCOME TAX EXPENSES

9 Months Ended

Jul. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 14 - INCOME TAX EXPENSES

Pursuant to FASB ASC Topic 740, there is no unrecognized tax benefits included in the condensed consolidated balance sheet at July 31, 2012 and October 31, 2011 that would, if recognized, affect the effective tax rate.

The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three and nine months ended July 31, 2012 and 2011:

	The three and nine months ended
	July 31,
		2012		2011
US statutory rates		34.00	%	34.00	%
Foreign tax rate difference		(9.0	)%	(9.0	)%
Income tax holiday		(10.0	)%	(10.0	)%
Tax per financial statements		15.00	%	15.00	%

Taxation on profits earned in the PRC has been calculated on the estimated assessable profits for the year at the rates of taxation prevailing in the PRC in which the Company operates after taking into effect the benefits from any special tax credits or “tax holidays” allowed in the country of operations.  If the Company did not have any tax exemption, the effects of the tax per share were as follows:

	For the three months ended July 31,				For the nine months ended July 31,
	2012		2011		2012		2011
	US$		US$		US$		US$
Tax savings		385,066		303,004		2,760,059		2,102,619
Benefit per share:
Basic		0.01		0.01		0.07		0.06
Diluted		0.01		0.01		0.07		0.06

Had the tax exemption not been in place for the three and nine months ended July 31, 2012 and 2011, the Company estimates the following pro forma financial statement impact:

	For the three months ended July 31,						For the nine months ended July 31,
	2012			2011			2012			2011
	US$			US$			US$			US$
Net income		3,255,538			2,519,845			23,412,891			20,549,196
Less Tax savings		(385,066	)		(303,004	)		(2,760,059	)		(2,102,619	)
Proforma Net income		2,870,472			2,216,841			20,652,832			18,446,577
Proforma Net income per share:
Basic		0.08			0.06			0.55			0.50
Diluted		0.08			0.06			0.55			0.49

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COMMITMENTS AND CONTINGENCIES (Details) (Ah City Pharmaceutical Plant [Member], USD $)	9 Months Ended
	Jul. 31, 2012
Ah City Pharmaceutical Plant [Member]
Purchase Date	October 2009
Prepaid Amount	$ 23,712,791
Remaining Amount	1,580,853
Total Amount	$ 25,293,644

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CONSTRUCTION IN PROGRESS

9 Months Ended

Jul. 31, 2012

Construction In Progress [Abstract]

Construction In Progress [Text Block]

NOTE 10 - CONSTRUCTION-IN-PROGRESS

The total capital expenses in Construction-in-progress as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012		October 31, 2011
	US$		US$
Ah City Pharmaceutical Plant phase two		1,952,353		1,937,103

Plant and production lines currently under development at the Ah City Pharmaceutical Plant Phase Two are accounted for as construction-in-progress. Construction-in-progress is recorded at historical cost, including development expenditures, professional fees and the interest expenses capitalized during the course of construction for the purpose of financing the project. Upon readiness for use of the project, the cost of construction-in-progress is transferred to property and equipment, at which time depreciation will commence. The Company had no capitalized interest and to date has funded this construction through operations without the use of outside debt financing.  The Ah City Phase Two is expected to be completed in the end of 2013 and these amounts will be reclassified to property and equipment when it is ready to use.

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DEPOSITS FOR PROPERTIES (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Prepaid Amount	$ 35,866,750	$ 39,299,697
Rent expenses deducted	(2,047,987)	(1,477,584)
Net deposits	33,818,763	37,822,113
Ah City Pharmaceutical Plant [Member]
Prepaid Amount	23,712,791	23,527,566
Rent expenses deducted	(1,811,457)	(1,209,375)
Net deposits	21,901,334	22,318,191
Office Floor [Member]
Prepaid Amount	3,032,439	4,212,253
Rent expenses deducted	(236,530)	(268,209)
Net deposits	2,795,909	3,944,044
Product Patents [Member]
Prepaid Amount	9,121,520	11,559,878
Rent expenses deducted	0	0
Net deposits	$ 9,121,520	$ 11,559,878

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PROPERTY AND EQUIPMENT, NET

9 Months Ended

Jul. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 8 - PROPERTY AND EQUIPMENT, NET

On April 10, 2010, CBP China entered into a Purchase Agreement with Hongxiangmingyuan of Heilongjiang Yongtai Company, to acquire two office floors for a total consideration of $6,064,878.  Pursuant to the Purchase Agreement, a payment of $4,245,415 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet.  Pursuant to the Purchase Agreement, final payment of $1,819,463was paid in May 2012. The title of one office floor was transferred in May 2012, the Company reclassified $2,829,699 from deposits to property and equipment and started depreciation over the estimated useful life of the asset. The other office floor is still in the process of title transfer.

Property and equipment and related accumulated depreciation as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Machinery and equipment		3,739,492			3,710,282
Office Building		2,829,699			-
Office equipment and furnishings		66,874			66,352
Motor vehicles		57,206			56,759
Total:		6,693,271			3,833,393
Less: Accumulated depreciation		(2,438,296	)		(2,054,409	)
Net book value		4,254,975			1,778,984

The depreciation expense incurred and recognized on our condensed consolidated statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011 were as follow:

	For the three months ended July 31,
	2012		2011
	US$		US$
Depreciation expenses in general and administrative		75,251		5,365
Depreciation expenses in cost of goods sold		94,418		92,283
Total depreciation expenses		169,669		97,648

	For the nine months ended July 31,
	2012		2011
	US$		US$
Depreciation expenses in general and administrative		84,185		12,899
Depreciation expenses in cost of goods sold		282,988		273,480
Total depreciation expenses		367,173		286,379

No assets were pledged for borrowings as of July 31, 2012 and October 31, 2011.

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INTANGIBLE ASSETS, NET

9 Months Ended

Jul. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 9 - INTANGIBLE ASSETS, NET

Intangible assets and related accumulated amortization as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
YiChun undergrowth resources		15,808,527			15,685,044
Product patents		2,529,364			2,509,607
Total		18,337,891			18,194,651
Less: Accumulated amortization		(1,598,377	)		(1,047,951	)
Intangible assets, net		16,739,514			17,146,700

The amortization expense of intangible assets incurred and recognized on our condensed consolidated statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011 were as follow:

	For the three months ended July 31,
	2012		2011
	US$		US$
Amortization Expense:		180,631		167,776

	For the nine months ended July 31,
	2012		2011
	US$		US$
Amortization Expense:		541,380		368,782

The following table shows the estimated amortization expenses expected to be incurred in the next five years:

Year		Amortization Expense
	2012 remaining	$	180,631
	2013		722,524
	2014		722,524
	2015		722,524
	2016		722,524
	2017 and thereafter		13,668,787
	Total	$	16,739,514

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RELATED PARTY TRANSACTIONS

9 Months Ended

Jul. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 11 - RELATED PARTY TRANSACTIONS

On October 12, 2009, we entered into a purchase agreement with Renhuang Stock, which 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”), to acquire the land use right, property and plant located at our Ah City Natural and Biopharmaceutical plant for a total consideration of $25,293,644. Pursuant to the purchase agreement, a payment of $15,808,527 was made to Renhuang Stock in October 2009 and a payment of $7,904,264 was made to Renhuang Stock in January 2011, with a final payment of $1,580,853 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 July 31, 2012. The Company recorded the payments under the Deposits for properties on condensed consolidated balance sheet.

Before the transaction is completed, the Company is deemed to lease property and plant from Renhuang Stock. Rental expenses related to this lease, incurred and expensed to condensed consolidated statements of income and comprehensive income, 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 purchase terms, the Company does not pay rent to Renhuang Stock for the use of the property and plant before the title is transferred. The detailed forgiven rental expense incurred and recognized to date is explained at Note. 12.

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INCOME TAX EXPENSES (Details)	3 Months Ended			9 Months Ended
	Jul. 31, 2012	Oct. 31, 2011	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
US statutory rates	34.00%		34.00%	34.00%	34.00%
Foreign tax rate difference	(9.00%)		(9.00%)	(9.00%)	(9.00%)
Income tax holiday	(10.00%)		(10.00%)	(10.00%)	(10.00%)
Tax per financial statements	15.00%	15.00%	15.00%	15.00%	15.00%

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COMMITMENTS AND CONTINGENCIES (Details 1) (Ah City Phase Two (Siberian Ginseng Product Industrialization) [Member], USD $)	9 Months Ended
	Jul. 31, 2012
Ah City Phase Two (Siberian Ginseng Product Industrialization) [Member]
Start Date	January 2011
Paid Amount	$ 1,952,353
Remaining Amount	17,017,879
Projected Total Amount	$ 18,970,232

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INCOME TAX EXPENSES (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Net income	$ 3,255,538	$ 2,519,845	$ 23,412,891	$ 20,549,196
Less Tax savings	(385,066)	(303,004)	(2,760,059)	(2,102,619)
Proforma Net income	$ 2,870,472	$ 2,216,841	$ 20,652,832	$ 18,446,577
Proforma Net income per share:
Basic (in dollars per share)	$ 0.08	$ 0.06	$ 0.55	$ 0.50
Diluted (in dollars per share)	$ 0.08	$ 0.06	$ 0.55	$ 0.49

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DEFERRED TAX ASSETS (Details) (USD $)	3 Months Ended			9 Months Ended
	Jul. 31, 2012	Oct. 31, 2011	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Allowance for doubtful and inventoryprovision	$ 935,480	$ 928,174		$ 935,480
Temporary difference	935,480	928,174		935,480
Income tax rate	15.00%	15.00%	15.00%	15.00%	15.00%
Deferred tax assets	$ 140,322	$ 139,226		$ 140,322

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INTANGIBLE ASSETS, NET (Tables)

9 Months Ended

Jul. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets and related accumulated amortization as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
YiChun undergrowth resources		15,808,527			15,685,044
Product patents		2,529,364			2,509,607
Total		18,337,891			18,194,651
Less: Accumulated amortization		(1,598,377	)		(1,047,951	)
Intangible assets, net		16,739,514			17,146,700

Schedule Of Amortization Expense Of Intangible Assets Incurred and Recognized [Table Text Block]

The amortization expense of intangible assets incurred and recognized on our condensed consolidated statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011 were as follow:

	For the three months ended July 31,
	2012		2011
	US$		US$
Amortization Expense:		180,631		167,776

	For the nine months ended July 31,
	2012		2011
	US$		US$
Amortization Expense:		541,380		368,782

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following table shows the estimated amortization expenses expected to be incurred in the next five years:

Year	Amortization Expense
2012 remaining	$	180,631
2013		722,524
2014		722,524
2015		722,524
2016		722,524
2017 and thereafter		13,668,787
Total	$	16,739,514

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INVENTORY, NET (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Raw materials	$ 1,443,678	$ 946,600
Packaging materials	3,782,804	1,896,169
Work-in-progress	8,740,389	3,205,862
Finished goods	1,404,006	1,436,767
Less: Inventory provision	(69,218)	(68,678)
Inventory, net	$ 15,301,659	$ 7,416,720

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EMPLOYEE BENEFITS

9 Months Ended

Jul. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

NOTE 16 - EMPLOYEE BENEFITS

The full-time employees of the Company’s subsidiary that is incorporated in the PRC are entitled to staff welfare benefits, including medical care, welfare subsidies, unemployment insurance and pension benefits. The PRC companies are required to accrue for these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations, and to make contributions to the state-sponsored pension and medical plans out of the amounts accrued for medical and pension benefits. The total amounts expensed to the condensed consolidated statements of income and comprehensive income for such employee benefits amounted to approximately $257,207 and $99,183 for the three months ended July 31, 2012 and 2011, respectively, and $509,246 and $357,569 for the nine months ended July 31, 2012 and 2011, respectively.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jul. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 21 - COMMITMENTS AND CONTINGENCIES

The Company has various purchase commitments for materials, supplies and services incident to the ordinary conduct of business, generally for quantities required for the Company’s business and at prevailing market prices. No material annual loss is expected from these commitments and there are no minimum purchase commitments.

The Company and its subsidiaries are self-insured, and they do not carry any property insurance, general liability insurance, or any other insurance that covers the risks of their business operations. As a result any material loss or damage to its properties or other assets, or personal injuries arising from its business operations would have a material adverse effect on the Company’s financial condition and operations.

The Company is not involved in any legal matters arising in the normal course of business. While incapable of estimation, in the opinion of the management, the individual regulatory and legal matters in which it might involve in the future are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

(1)  Operating lease arrangements

We currently have no operating lease agreement with any company.

(2)  Capital commitments

On October 12, 2009, we entered into a purchase agreement with Harbin Renhuang Pharmaceutical Stock Co. Ltd (“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 $25,293,644. Pursuant to the purchase agreement, a payment of $15,808,527 was made to Renhuang Stock in October 2009 and a payment of $7,904,264 was made to Renhuang Stock in January 2011, with a final payment of $1,580,853 will be paid once we received all the related title transfer documents from local government, at which time title for the assets will be transferred. According to the agreement, we were exempted from lease payments for the underlying assets starting from May 1, 2010. 

Name of Fixed Asset	Purchase Date	Prepaid Amount		Remaining Amount		Total Amount
Ah City Pharmaceutical Plant	October 2009	$	23,712,791	$	1,580,853	$	25,293,644

In January 2011, CBP China started its Ah City Phase Two project for Siberian Ginseng products development and industrialization and entered into a Construction and Engineering Design Contract (the “Contract”) with Heilongjiang Medical Architecture Design Institute (the “Institute”) for architectural design. A few payments have been made to Institute and relevant local government departments for design and start up fees and we recorded $1,952,353 as Construction-in-progress for Ah City Phase Two project. The estimated total investment for Ah City Phase Two is $18,970,232. The project is anticipated to be finished in the year of 2013.

Name of Construction-in-Progress	Start Date		Paid Amount		Remaining Amount		Projected Total Amount
Ah City Phase Two (Siberian Ginseng Product Industrialization)		January 2011	$	1,952,353	$	17,017,879	$	18,970,232

On January 11, 2011, CBP China entered into an Exclusive Licensing Agreement for Harbin Renhuang Pharmaceutical Co., Ltd. to Use Forest Resources under Yichun Red Star Forestry Bureau (the “Agreement”) with Yichun Red Star Forestry Bureau of Heilongjiang Province (the “Forestry Bureau”) which provides us with 30 years exclusive license right to use approximately 6,667 hectares of undergrowth resources including approximately 67 hectares of Siberian Ginseng GAP cultivation base in Heilongjiang Province. Pursuant to the Agreement, a payment of $7,904,264 was made to Forestry Bureau in January 2011, second payment of $6,323,411 was made in October 2011 and the final amount of $1,580,853 will be paid by receiving all the required material from local government authorities. Siberian Ginseng is a plant with medically-established anti-depressant and mood regulation qualities and is also an active ingredient in our market-leading line of all-natural anti-depressant medications. We will be responsible for continued maintenance and protection of wild resources to make this area a professional Siberian Ginseng base.

As of July 31, 2012, the Company has the following intangible assets which need our future capital commitments:

Name of Intangible Assets	Purchase Date	Paid Amount		Remaining Amount		Total Amount
Patent of Ingredients and preparation for Parkinson Drug	August 2011	$	1,359,533	$	1,359,533	$	2,719,066
Patent of Ingredients and preparation for XiangDousu	August 2011		1,343,725		1,343,725		2,687,450
Patent of Mudouye Extract	September 2011		1,897,023		1,897,023		3,794,046
Patent of Hongdoushan Extract	September 2011		2,387,088		2,387,088		4,774,176
Patent of Ingredients and preparation for Jizhi Pills	October 2011		2,134,151		2,134,151		4,268,302
Yichun Undergrowth Resource Exclusive Using right	January 2011		14,227,675		1,580,853		15,808,528
Total		$	23,349,195	$	10,702,373	$	34,051,568

On January 24, 2012, the Company entered into an advertising contract with Harbin Weishi Advertising Company to advertise its products from February 1, 2012 to January 31, 2013 as shown on the following table.

Advertising Contract	Contract Date	Paid Amount		Remaining Amount		Total Amount
			US$		US$		US$
Harbin TV Weishi Advertising Company	January 2012		3,604,344		3,604,344		7,208,688

As of July 31, 2012, the Company has capital commitments for purchase of Ah City Nature and Pharmaceutical Plant, undergrowth resources right, product patents, advertising contract and Ah City Phase Two construction-in-progress of approximately $32,905,449. The amounts to be paid in the future years are as follows:

Year		Payment for properties
2012	$	14,085,398
2013		18,820,051
Total	$	32,905,449

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TRADE RECEIVABLES, NET (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Trade receivables	$ 18,832,775	$ 23,704,241
Less: Sales rebates	(1,225,303)	(1,681,721)
Less: Allowance for doubtful accounts	(477,928)	(474,195)
Trade receivables, net	$ 17,129,544	$ 21,548,325

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PREFERRED STOCK, COMMON STOCK AND EQUITY TRANSACTIONS (Tables)

9 Months Ended

Jul. 31, 2012

Stockholders Equity Note [Abstract]

Schedule Of Fair Value Assumptions Of Warrants Estimated On The Date Of Grant [Table Text Block]

The fair value of the warrants is estimated on the date of grant using the Black-Scholes option valuation model to be $496,732. The valuation was based on the assumptions noted in the following table.

Expected volatility	175.80	%
Expected dividends	0	%
Expected term (in years)	3 years
Risk-free rate

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Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Cash flows from operating activities:
Net income	$ 23,412,891	$ 20,549,196
Adjustments to reconcile net income to operating activities:
Depreciation	367,173	286,379
Amortization	541,380	368,782
Share compensation	71,493	96,981
Noncash rental expenses	760,652	572,065
Warrants liability reevaluation	(22,357)	(305,797)
Deferred tax assets	0	(135,409)
Changes in assets and liabilities:
Decrease in trade receivables, net	4,581,688	6,891,867
(Increase) in due from related parties	0	(98,049)
(Increase) in inventory, net	(7,815,061)	(3,815,951)
Decrease (Increase) in other receivables, net	6,687,086	(115,187)
(Decrease) in accounts payable	(329,248)	(159,845)
(Decrease) Increase in tax payable	(3,659,443)	1,898,697
Increase in accrued employee benefits	561,130	391,128
Net cash provided by operating activities	25,157,384	26,424,857
Cash flows from investing activities:
Deposits for land use right, property and patents	(908,396)	(15,255,064)
Refunds from patents deposit	2,525,651	0
Increase in construction-in-progress	0	(1,884,000)
Purchase of property and equipment	(908,396)	(5,862)
Net cash provided by (used in) investing activities	708,859	(17,144,926)
Effect of exchange rate changes on cash	158,351	1,215,171
Net increase in cash	26,024,594	10,495,102
Cash, beginning of year	15,283,583	27,826,142
Cash, end of year	41,308,177	38,321,244
Supplemental disclosure of cash flow information:
Noncash investing activities in office building	1,917,149	0
Cash paid during the year for income taxes	8,595,354	0
Interest paid during the year	$ 0	$ 0

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COMMITMENTS AND CONTINGENCIES (Details 4) (USD $)	Jul. 31, 2012
2012	$ 14,085,398
2013	18,820,051
Total	$ 32,905,449

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TRADE RECEIVABLES, NET

9 Months Ended

Jul. 31, 2012

Trade Receivable Net [Abstract]

Trade Receivable Net [Text Block]

NOTE 5 - TRADE RECEIVABLES, NET

The trade receivables amount included in the condensed consolidated balance sheets as of July 31, 2012 and October 31, 2011 were as follows:

	July 31, 2012			October 31, 2011
	US$			US$
Trade receivables		18,832,775			23,704,241
Less: Sales rebates		(1,225,303	)		(1,681,721	)
Less: Allowance for doubtful accounts		(477,928	)		(474,195	)
Trade receivables, net		17,129,544			21,548,325

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CONSTRUCTION-IN-PROGRESS (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Ah City Pharmaceutical Plant phase two	$ 1,952,353	$ 1,937,103
Ah City Pharmaceutical Plant Phase Two [Member]
Ah City Pharmaceutical Plant phase two	$ 1,952,353	$ 1,937,103

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RESERVES (Details) (USD $)	Jul. 31, 2012	Oct. 31, 2011
Statutory surplus reserve	$ 3,090,320	$ 3,090,320
Public welfare fund	282,377	282,377
Total	$ 3,372,697	$ 3,372,697

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EMPLOYEE BENEFITS (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2012	Jul. 31, 2011	Jul. 31, 2012	Jul. 31, 2011
Defined Benefit Plan, Net Periodic Benefit Cost	$ 257,207	$ 99,183	$ 509,246	$ 357,569

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SUBSEQUENT EVENT

9 Months Ended

Jul. 31, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 22 - SUBSEQUENT EVENT

Management has evaluated subsequent events through the date these condensed consolidated financial statements were issued and has concluded no events need to be reported during this period.

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PREFERRED STOCK, COMMON STOCK AND EQUITY TRANSACTIONS (Details Textual) (USD $)								0 Months Ended
	Jul. 31, 2012	Apr. 30, 2012	Oct. 31, 2011	Jul. 31, 2011	Apr. 30, 2011	Oct. 31, 2010	Mar. 25, 2010	May 15, 2009 Allied Merit International Investments, Inc. and Griffin Ventures Ltd. [Member]
Preferred Stock Additional Shares Authorized	1,000,000
Stock Issued During Period, Shares, New Issues								2,142,856
Warrants Outstanding	160,000	1,231,428	1,231,428	1,231,428	1,231,428	1,231,428		1,071,428
Class of Warrant or Right, Exercise Price of Warrants or Rights							2.00	0.875
Stock Issued During Period, Value, Issued For Noncash Considerations								$ 1,500,000
Common stock warrants	$ 0		$ 496,732					$ 496,732

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INCOME TAX EXPENSES (Tables)

9 Months Ended

Jul. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three and nine months ended July 31, 2012 and 2011:

	The three and nine months ended
	July 31,
		2012		2011
US statutory rates		34.00	%	34.00	%
Foreign tax rate difference		(9.0	)%	(9.0	)%
Income tax holiday		(10.0	)%	(10.0	)%
Tax per financial statements		15.00	%	15.00	%

Summary of Income Tax Holiday [Table Text Block]

If the Company did not have any tax exemption, the effects of the tax per share were as follows:

	For the three months ended July 31,				For the nine months ended July 31,
	2012		2011		2012		2011
	US$		US$		US$		US$
Tax savings		385,066		303,004		2,760,059		2,102,619
Benefit per share:
Basic		0.01		0.01		0.07		0.06
Diluted		0.01		0.01		0.07		0.06

Schedule Of Estimated Pro Forma Financial Statement [Table Text Block]

Had the tax exemption not been in place for the three and nine months ended July 31, 2012 and 2011, the Company estimates the following pro forma financial statement impact:

	For the three months ended July 31,						For the nine months ended July 31,
	2012			2011			2012			2011
	US$			US$			US$			US$
Net income		3,255,538			2,519,845			23,412,891			20,549,196
Less Tax savings		(385,066	)		(303,004	)		(2,760,059	)		(2,102,619	)
Proforma Net income		2,870,472			2,216,841			20,652,832			18,446,577
Proforma Net income per share:
Basic		0.08			0.06			0.55			0.50
Diluted		0.08			0.06			0.55			0.49

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EARNINGS PER SHARE

9 Months Ended

Jul. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 15 - EARNINGS PER SHARE

When calculating diluted earnings per share for common stock equivalents, the Earnings per Share, FASB ASC Topic 260, requires the Company to include the potential shares that would be outstanding if all outstanding stock options or warrants were exercised. This is offset by shares the Company could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent.

The following reconciles the components of the EPS computation for the three months ended July 31, 2012 and 2011:

	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	US$				US$
For the three months ended July 31, 2012:
Net income		3,255,538
Basic EPS income available to common shareholders		3,255,538		37,239,536		0.09
Effect of dilutive securities:
Share Options		-		-		-
Share Warrants		-		-		-
Diluted EPS income available to common shareholders		3,255,538		37,239,536		0.09
For the three months ended July 31, 2011:
Net income		2,519,845
Basic EPS income available to common shareholders		2,519,845		37,239,536		0.07
Effect of dilutive securities:
Share Options				-
Share Warrants		-		234,375		-
Diluted EPS income available to common shareholders		2,519,845		37,473,911		0.07

For the three months ended July 31, 2012, warrants of 160,000 shares and option of 284,998 shares were excluded from calculation of diluted earnings, because the exercise prices exceeded the average price of the Company’s common stock. For the three months ended July 31, 2011, warrants of 160,000 shares and option of 270,000 shares were excluded from calculation of diluted earnings, because the exercise prices exceeded the average price of the Company’s common stock.

The following reconciles the components of the EPS computation for the nine months ended July 31, 2012 and 2011:

	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	US$				US$
For the nine months ended July 31, 2012:
Net income		23,412,891
Basic EPS income available to common shareholders		23,412,891		37,239,536		0.63
Effect of dilutive securities:
Share Options				-
Share Warrants		-		-		-
Diluted EPS income available to common shareholders		23,412,891		37,239,536		0.63
For the nine months ended July 31, 2011:
Net income		20,549,196
Basic EPS income available to common shareholders		20,549,196		37,239,536		0.55
Effect of dilutive securities:
Share Options				-
Share Warrants		-		510,051		-
Diluted EPS income available to common shareholders		20,549,196		37,749,587		0.54

For the nine months ended July 31, 2012, warrants of 160,000 shares and option of 284,998 shares were excluded from calculation of diluted earnings, because the exercise prices exceeded the average price of the Company’s common stock. For the nine months ended July 31, 2011, warrants of 160,000 shares and option of 270,000 shares were excluded from calculation of diluted earnings, because the exercise prices exceeded the average price of the Company’s common stock.