AMDL, Inc., a vertically integrated pharmaceutical company with operations in China and the US, announced it is implementing a state-of-the-art, westernized enterprise accounting system across its US and China-based operations.

 

Developed by China-based Kingdee International Software, the new accounting system runs on a high-speed, point-to-point dedicated server system to completely streamline end-to-end accounting practices, financial reporting, taxation, corporate governance and controls to deliver real-time financials. The accounting system has already been implemented in AMDL's US-based headquarters and implementation across the Company's China-based pharmaceutical operations underway.

 

Over the past four years AMDL has seen over 100% year-over-year growth and anticipates continuing this trend for fiscal year 2009 where it is once again forecasting at least 100% sales growth. Management's decision to implement the new Kingdee accounting system is an instrumental part of the Company's plan to increase financial transparency, manage and run all operations on a real time basis, based on best business practices and standards.

 

According to AMDL's Chairman and CEO, Mr. Douglas MacLellan, "This implementation represents Kingdee's first US technology deployment, making AMDL the only China-based, US publicly-traded Company to operationalize an accounting system that meets the demanding and rigorous requirements of US GAAP-certified accounting standards. We took a very cost-effective and diligent approach in choosing Kingdee and we believe the system gives AMDL internal controls financially and operationally over our Chinese company publicly listed on a US exchange."

 

With more than 26 years experience in Chinese business management and 12 years experience specifically in the China pharmaceutical industry, Mr. MacLellan also commented, "With China's health care spending projected to grow at 11% through 2012 and a $586 billion stimulus package focused on bringing universal healthcare to its 1.3 billion citizens, AMDL is in a tremendous position for exceptional growth and its absolutely imperative AMDL is operationally prepared to account for that growth. Implementing a state-of-the art system like Kingdee is an instrumental part of our operational plan and provides a critical layer of control and reporting confidence to the Company, our partners, customers and valued shareholders."

 

According to James Shen, publisher of Healthcare Journal Pharma China, "China's pharmaceutical sector has shown double-digit annual growth for the past two decades, with 2007 growth coming in at nearly 20%". (2008 figures have not yet been released.) Omair Azam, marketing forecasting manager at Synovate Healthcare in Beijing, projects that the Chinese market will continue to show a growth rate of 12-15% per annum for the next five years; by contrast, growth in Europe and the US is expected to hover around the 2-5% mark.

 

Mr. MacLellan continued, "Despite China's slightly toned down 6-7% GDP growth rate for FY2009, this market is far from approaching a recession. China's industry earnings growth is expected to outperform the US next year, making China-based companies a strong buy -- particularly as investors look to put cash reserves back to work in the equities markets. These sentiments were corroborated by Mr. Neil Shen, industry pundit and managing partner of Sequioa Capital China, where he has recently indicated China is where continued gross domestic product expansion and steady consumer spending will help to sustain profits and China's GDP gains."

 

In addition to the Kingdee system, AMDL has taken additional steps to operationalize other best business practices and standards across its US and China-based operations. Today's announcement on the implementation of GAAP-certified accounting system is just one in a thorough list of operational excellence protocols the Company is enforcing. Others include:

 

Establishing a US FDA, GMP-approved and ISO 13485-certified manufacturing facility in Tustin, California and four cGMP manufacturing facilities in Jiangxi and Jilin provinces in China.

 

Securing tenured, contractual distributor relationships with exclusivity clauses that enable AMDL's distributors to distribute and sell the Company's products in key China markets as well as Europe, South America and US without facing outside competition. The Company continues to bring new distributor relationships onboard.

 

Implementing Sarbanes-Oxley (SOX) compliant internal control structures and procedures by 2009.

 

 

About Kingdee:

 

Kingdee International Software Group Company Limited (HK Stock Code: 268) is a leading provider of enterprise management software and e-Business application solution in the Asia-Pacific region, one of the fastest-growing independent software vendors in the global market, and a leading provider in China's software industry, Kingdee is engaged in developing and selling enterprise management software and e-Business application software, and middleware of e-Business and e-government platforms for enterprises or government. Kingdee also provides software-related management consultation, implementation and technical support services for worldwide customers. With its unique product and service position of "Fast Configuration, Fast Implementation, Fast Application, and Fast Results", Kingdee is able to help customers to easily face the challenges of uncertainty brought by the dynamic business environment, perfectly integrate the business processes and information technology, effectively manage changes, and ensure the fast, sustainable and healthy growth of the organization. For more information, please visit: http://www.kingdee.com/en.

 

About AMDL:

 

Headquartered in Tustin, CA with operations in Shenzhen, Jiangxi, and Jilin, China, AMDL, Inc., along with its subsidiary Jade Pharmaceutical Inc. (JPI), is a vertically integrated pharmaceutical company devoted to the research, development, manufacturing, and marketing of diagnostic, pharmaceutical, nutritional supplement, and cosmetic products. The company employs over 490 people in the U.S. and China.