ZW Data Action Technologies Inc. announced that it entered into a letter of intent with Nanyue Health, a digital medicine and health platform owned by Guangdong Nanyue Pharmaceutical Co Ltd., pursuant to which the parties shall form a strategic partnership to jointly conduct marketing, share resources, jointly operate traffic and cooperate on other aspects of the Smart Medicine Cabinet Machine and Chan Li Chai Health Project (the "Project"). Pursuant to the letter of intent, the cooperation with Nanyue Health will be performed in two phases. ZW Data will provide the services which include market expansion and on-off line self-service machine smart service and Blockchain Technology in two phases.

The Phase One includes business cooperation, sales of the smart medicine cabinet machines, and establishment of the operation team of Chan Li Chai Health Project for the offline market expansion. In addition, the online brand promotion plan will be conducted via multiple business activities to promote Nanyue Health's brand image. For Phase Two, the two parties will have technology cooperation on the platform of "Online Mall Service + Offline Smart Health Service Station + Blockchain Technology", including private domain traffic diversion, the establishment of operation and marketing service team, and expansion of private domain traffic service.

Since the outbreak of the pandemic, a new trend of "contactless services" has emerged in many industries to reduce the probability of mutual infection among people, and unmanned pharmacies and vending machines are typical representatives of this new trend. The company believe that the State Food and Drug Administration and the Medical Insurance Bureau in China supports the development of smart pharmacies related markets, promoting the integrated development of pharmaceutical distribution enterprises and e-commerce platforms, and the development of smart supply chains, smart logistics, and smart pharmacies.