The Company's e-commerce business started in 2000. In that year, the State Council announced the "Guidelines on Urban Medical and Health System Reform" (Guo Ban Fa [2000] No. 16) and supporting documents which require "during the drug purchase and sale activities, to actively adopt state-of-art electronic information network technology, to improve efficiency and reduce cost in drug distribution ". The new provision provided a favorable policy environment for the growth of SeaRainbow’s medicine e-commerce business, and with the subsequent rapid development of company, SeaRainbow has established itself as a leader in Chinese medicine e-commerce business.
In front of this original, great-potential industrial opportunity, SeaRainbow immediately seized it by tapping various human, material and capital resources. The Company took initiatives in various pilot projects in Hainan and Beijing medical institutions, and produced the first successful business models.
Medicine e-commerce is the new form of the traditional pharmaceutical distribution industry after the introduction of modern management philosophy and Internet technology. During the early stages, all participants, including SeaRainbow’s e-commerce solution, spring from the basic business model: medical institutions’ centralized drug tendering/bidding. The online transaction system targets the centralized tendering/bidding event and aims to grow into a medicine e-commerce market covering the whole medical and medicine industry. As an independent third-party which connects suppliers such as pharmaceutical manufacturers, distributors and consumers, such as medical institutions, the Company takes advantage of the centralized nature of the industry and is committed to providing a high-quality online bidding system and intermediary services. The online system doesn’t rely on informatization on either supplier or consumer side. It helps both of them achieve leap-forward-development when they participate in establishing the transaction system. Any county level and above medical institution can take advantage of this online platform to procure medicine. The business model perfectly fits the current reforming scenario of the drug circulating mechanism in the following aspects: it provides the manufacturer with agency services; it provides the medical organization with comprehensive centralized procurement consulting services (paperless offering, tendering, bid evaluation); it changes the way of getting information for both buyer/seller and provides value-added information services for both sides and authorities as well. This model has been proven to be the only applicable model in the current market/policy environment and caters to the interests of all parties. The promotion of this model/solution nationwide definitely helps enhance and expand Chinese drug distribution reform, and quickens the pace of building a novel drug circulation system. It shows remarkable positive historical/social implications in addressing important societal issues.  SeaRainbow adopts medicine e-commerce as a method for penetrating into the drug distribution market. It brings not only new concepts to the drug distribution industry, but also fosters responsibility and growth in the e-commerce industry. It further improves the quality of investment in new-economy industry, and the level of investment strategy and management of SeaRainbow.
The model’s further development is the fruit of repetitive problem solving and experience accumulated during the expansion process of SeaRainbow’s e-commerce model nationwide. Through improving technology and management skills, based on a centralized tendering/bidding model, the Company is making the switch from medicine e-commerce to a comprehensive and instantaneous e-business model that may contribute to the overall development of the medicine distribution market.
Combining the know-how accumulated from over a decade of operation, along with the support of strong IT/medical expert teams, the Company now owns over 70 subsidiaries running medicine e-commerce, covering 160 cities of 27 provinces (including autonomous regions and municipalities) in China. Currently, SeaRainbow’s medical e-commerce platform deals with more than 12,000 medical institutions, 28,000 pharmaceutical companies, 112,000 pharmaceutical products, and 263 medical suppliers in 31 general categories. The annual turnover through the platform exceeds 300 billion RMB. As a private enterprise, SeaRainbow’s success in the medical field is not only leading the country, but also leading Asia and the rest of the world. 
Currently, as national policy and the medical industry environment changes, the Company has come up with new strategies. To comply with government policies and adjust to changes in the business environment, the Company takes the role of a third-party by tendering/bidding through its platform in some cities, while at the same time utilizing its advantages through years of accumulated technology and data to explore other income sources in areas such as government procurement, technology R&D, technical services, data extension, data analysis, etc. On the other hand, beside traditional e-transaction and e-commerce business, the Company will keep a close eye on the state’s new medical policy and latest developments and trends in the domestic pharmaceutical market. By utilizing the existing technology, operation and resources, it will introduce new business models; seek new project and investment opportunities; continue to expand and broaden the Company’s business growth margin; and maintain healthy sustainable growth.