Shanghai Medical Technology Co., Ltd. (OTC BB: AAXT) Shanghai Medical Technology Co., Ltd. is a leading provider of Hemodialysis and renal care equipment, supplies, and related support services in Eastern China. Specifically, Shanghai Medical distributes and sells Hemodialysis equipment (“HDE”) which is mainly used by hospitals and medical facilities and includes machines, dialyzers, disposables and diagnostic products used in Hemodialysis, throughout the People’s Republic of China.

HEMODYALISIS (HD) INDUSTRY OVERVIEW
HD is a procedure for removing metabolic waste or toxic substances from the bloodstream, for patients with kidney disease or failure.

In the PRC there are approximately 6,800 hospitals and clinics where patients receive HD treatment, or one for every 192,000 people in the PRC (compared to 4,500 locations, or one for every 67,000 people in the US).

Total patients needing treatment are expected to surpass 350,000 by 2010 which creates a total addressable  product market of more than $1 Billion. Currently, the average price per HD treatment is $50 per patient, with each patient averaging one treatment per week. 50%-60% of this cost is derived from product and the remainder for servicing.

As the PRC economy grows, there is a strong motivation to spread the treatment centers from the heavily populated Eastern cities to a far wider area of the country to allow for  treatments to be more readily available.

The national government has adopted a national health insurance program similar to Medicare and Medicaid in the U.S. This program, being implemented over the 2007-2010 period, is substantially increasing the people who can afford hemodialysis treatment.