Pharmaceutical e-commerce is a product of the transformation of the traditional pharmaceutical distribution industry by utilizing modern business management methods and Internet technology. All participating enterprises, including Haihong's pharmaceutical e-commerce solutions, take centralized procurement of medicines for medical institutions as the basic business model at the initial stage of implementation. It is an online electronic trading system that takes centralized bidding and procurement of medicines for medical institutions as the target market, and the goal is to establish a pharmaceutical e-commerce market that can cover the entire pharmaceutical and healthcare industry. It makes use of the industry characteristics of centralized bidding for medical institutions in the circulation of medicines to provide high-quality online bidding and transaction intermediary services by an independent third party outside of the producer of the medicine manufacturing or the seller of the medicine wholesale and the consumer represented by the medical institutions; the application of the transaction system does not rely on the informatization of the medical institutions and the medicine manufacturing and operating enterprises as a prerequisite, but directly realizes the informationization of medical institutions and the medicine manufacturing and operating enterprises at the same time as the establishment of the transaction system. It realizes the leaping development of information of medical institutions and drug production and management enterprises, and all medical institutions in counties and cities above counties can participate in centralized drug procurement with the help of this network platform. The main advantage of this business model is that it is in line with the national conditions of China's reform of the pharmaceutical circulation system, and can provide agent services for pharmaceutical production and management enterprises; provide comprehensive and systematic management consulting services for centralized procurement of pharmaceuticals for medical institutions, and paperless services for the whole process of bidding, tendering, and evaluation of bids; and change the way of obtaining information of both parties involved in purchasing and selling of pharmaceuticals, and provide high-quality information proliferation services for both parties involved in purchasing and selling, as well as for the governmental supervisory departments. In addition, the Company achieves economic benefits from value-added services. This model has been proved to be the only feasible and effective solution under the market conditions at that time, which is in line with the interests of all parties. The promotion of this solution in the country, consolidate and expand the results of the reform of the domestic drug circulation system, accelerate the pace of creating a new type of drug circulation system, for the solution of all sectors of society *** with the concern of all kinds of social problems in the drug circulation market, has an extremely positive, significant social significance and far-reaching historical significance; sea rainbow holdings to pharmaceutical e-commerce as a means to intervene in the drug circulation market, not only Gives the drug circulation system a brand-new operation concept, but also gives the network information industry - e-commerce special responsibility and vitality, it further improves the company in the new economic field of investment quality, improve the company's investment strategy level and management level.

The further development of this model is also the result of the company's continuous discovery of problems, summarization and improvement in the process of vigorously promoting and expanding the e-commerce model of Haihong Pharmaceuticals throughout the country. By continuously improving its technology and management level, the company is striving to transform its pharmaceutical e-commerce model into a comprehensive real-time e-commerce model on the basis of centralized purchasing of medicines for medical institutions as the basic business model, so as to contribute to the overall strategy for the development of the pharmaceutical distribution market.

Haihong Holdings' investment in the field of pharmaceutical e-commerce is an important symbol of the transformation of the company's investment from project investment and product investment to industrial investment and industry investment, and is an important manifestation of the company's forward-looking and original business strategy.