BEIJING, Sept. 2 /PRNewswire-Asia/ -- RainEarth Inc. (OTC Bulletin Board: RNER; "the Company") announced that in the second quarter of 2009, the Xinhua News Agency publicized the creation of "Opinions of the CPC Central Committee and the State Council on Deepening the Reform of the Medical and Health Care System" ("Opinion").
The "Opinion" proposed practical methods to enable people to go see a doctor more easily. Reduced cost is the short-term goal and the long-term goal is to establish a medical coverage plan for urban and rural populations that meets their basic medical requirements more effectively and conveniently.
The Company's Chinese subsidiary, Beijing Rain and Earth Technology Development Corp. Ltd. ("China RainEarth") not only complied with this system of medical reform, but will also continue improving the quality of its products while keeping prices competitive and affordable for patients.
China RainEarth's main product, blood dialysis, is an effective measure for patients with acute and chronic renal failure (uremia) to sustain their lives. Currently, there are about 60,000 renal failure patients, who spend more than RMB six billion (approximately US$882 Million) every year on blood dialysis in China.
Currently, imported products dominate the market. Comparatively, domestic products only have less than 2% market share. With social and economic development as well as the improvement of healthcare services, 15 million blood dialyzers will be sold in China by 2012 and the market size will hit RMB 1.2 billion (approximately US$176 million). At that time, the market share of domestic products will exceed 50%.
"Our blood dialysis is up to 40% cheaper than other imported dialysis. Of course our dialysis maintains the same high quality," said Yongfu Zhu, CEO of the Company. "Our dialysis has been used by several hospitals and as it is recognized by more patients and hospitals, we will see continued growth for the Company."
About the Company
RainEarth Inc. (formerly Gold Rock Resources Inc., the "Company") was incorporated in the State of Nevada on March 14, 2006. The Company is a developing-stage company that initially engaged in the search for mineral deposits or reserves.
On March 25, 2009, the Company and China RainEarth, a company organized and existing under the laws of the People's Republic of China, entered into a Business Cooperation Agreement (the "Agreement") for a term of twenty years. The purpose of the Agreement is to jointly conduct Hollow Fiber Membrane Materials' application and manufacturing in China (the "Business"). The main product that utilizes this technology is the blood dialyzer.
The Company will provide advice and assistance relating to the development of marketing and consultancy services, particularly as related to the Business. China RainEarth will give 60% of its revenue after deduction of direct operating costs, expenses and taxes to the Company in consideration of the Company's services.
Forward-looking statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion. The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
For more information, please contact:
RainEarth Inc.
Public Relations Department
Tel: +852-3005-7220
Email: Investor@rainearth.net
