imaging the future
2023
Environmental, Socialand Governance Report
Improving Lives with Innovative Imaging Technologies
iRay Technology Company LimitedStock code: 688301.SH
0102
Operational Excellence and Innovation-driven StrategyComprehensive Quality ManagementBoosting R&D InnovationProviding Quality Services
Low Carbon and Green DevelopmentImplementing Environmental ManagementStrengthening Emmision ManagementImproving Resource EfficiencyResponding to Climate ChangePractising Green Office
Responsible Procurement and Resilient ManagementImproving Supply Chain ManagementFostering a Responsible Supply Chain
Caring for Society and Shouldering ResponsibilityFeedback From Readers
Employee Care and Talent DevelopmentProtecting Employees’ Rights and InterestsOptimising Employees’ BenefitsEmpowering Employee DevelopmentEnsuring Health and Safety
Table of content
About the ReportMessage from the ChairmanAbout UsSound Corporate Governance for Sustainable DevelopmentESG Topics in 2023
iRay Technology ESG Report 2023
This report is the second environmental, social, and governance (ESG) report (hereinafter this report)issued by iRay Technology Company Limited after the Companys first ESG report issued in 2022. This reportaims to reflect the Company’s initiatives and performances objectively and truthfully in environmental,social and governance and other sustainability indicators to shareholders and investors, customers, employ-ees, government departments and regulators, suppliers and partners, the public, and other stakeholders.
Reporting Standards
In this report, iRay Technology Company Limited is referred to as iRay Technology, Company or We. iRayTechnology Taicang Limited a wholly-owned subsidiary held by iRay Technology Company Limited, is referred toas iRay Taicang for short, iRay Advanced Material Technology (Taicang) Co., Ltd. is referred to as iRay AdvanceMaterial for short and iRay Imaging Technology (Haining) Limited is referred to as iRay Haining for short and
iRay Precision Manufacturing Haining Limited is referred to as iRay Precision. Palwex Technologies (Beijing) Co.Ltd. is referred to as Palwex Technologies, and High Voltage Technology Co., Ltd is referred to as High VoltageTechnology.The currency in this report is denominated in Chinese Yuan (CNY).
Report Access
This report can be viewed or downloaded online in both simplified Chinese and English at the Shanghai StockExchange website (www.sse.com.cn) and the Companys official website (www.iraygroup.com).
Contact
If you have any questions or suggestions about this report, please feel free to contact us viaEmail: ir@iraygroup.comTel: +86 21-50720560-8311Fax: 4008266163-60610Address: Building 45, No. 1000 Jinhai Road, Pudong New Area, Shanghai, China 201206
Time FrameThis report involves the information and data from January 1, 2023, to December 31, 2023 (hereinafter the Report-ing Period). Some of them traced back to and before 2022 and will be stated where relevant.
Reporting GuidelineThis report is prepared with reference to the requirements and guidance for ESG information disclosure by Guide-lines No.1 on the Self-Regulation for Listed Companies on the Science and Technology Innovation Board of theShanghai Stock Exchange (the SSE STAR Market) and the Guidelines No.2 on the Self-Regulation for Listed Compa-nies on SSE STAR Market - Voluntary Information Disclosure published by Shanghai Stock Exchange.
Reporting ScopeUnless otherwise stated, the scope of this report is aligned with that of the annual financial report.
About the Report
0304
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iRay Technology ESG Report 2023
Innovation-orientated pursuit of excellence
As a leading company in the digital X-ray detector industry in China and globally, with our indus-try-leading technology and excellent ability to innovate, we take the pursuit of excellent quality as ourunswerving goal, and are dedicated to providing our customers with safer and more advanced X-raytechnology, and to make this technology everywhere.As of 31 December 2023, the Company has a total of 475 registered or authorised intellectual property(IP) rights of various types (based on the date of obtaining the certificate), of which 155 are inventionpatents, and in 2023, there were 30 new invention patents and 33 new utility model patents. Adheringto the concept of Green X-ray, we are committed to providing products with lower clinical dose,better images, and higher efficiency, and strive to create socially and environmentally friendly prod-ucts.Working Together to Create and Share
iRay Technology regards employees as valuable asset of the enterprise, and is committed to creatinga workplace of diversity, equality and inclusion, solidarity, camaraderie and harmony. The companycontinues to improve salary and benefit system, and provided an career development stage for allemployees to fully explore their potential and realise their self-worth. Meanwhile, we consider it ourimportant responsibility to protect employees physical and mental health, and do our best to providea safe and healthy working environment.In order to further mobilise our core team and share the fruits of development between the Companyand our employees, we issued a Restricted Share and Stock Option Incentive Plan 2023 during the Re-porting Period, granting 3 million shares to incentive recipients, with a total of 455 employees receivingthe first incentive, we believe that this action will further promote the sustainable development andcommon growth of the Company and our employees.
Low Carbon and Green Development
iRay Technology has always been practicing the concept of green development, and actively assum-ing the responsibility of corporate environmental governance while pursuing economic benefits. Wecreate a low-carbon and environmentally friendly production and operation, and continue to improveenergy efficiency through the optimisation of processes and equipment. We practice green officeinitiatives, and gradually build the green innovation competitiveness of the enterprise, contributing tothe fight against global climate change. In addition, we practice green and sustainable procurement,and work together with our partners to build a sustainable industrial chain and for a better future.Long as the journey is, we will reach our destination if we stay the course; difficult as the task is, we willget the job done if we keep working at it. In the upcoming year, iRay Technology will continue toadhere to its corporate mission of Improving Lives with Innovative Imaging Technologies, maintain anenterprising attitude, and work together with all stakeholders across entire value chain to explore theroad to resilient development and achieve sustainable long-term value.
iRay Technology ESG Report 20230506
The year 2023 was a year of positive growth andchange, we behaved well with solid development,thanks to the companys strong strategic strengthand business resilience, its unswerving proactivestance to seek breakthroughs in new formsthrough innovation and change, and the promo-tion of new products and technologies to existingbusinesses. We have always been enterprisingand forging ahead. We expand our businesslayout and scope of operations while achievingleapfrog progress in our product and technology.Amid changes, we will not forget our corporatemission of Improving Lives with Innovative ImagingTechnologies, integrate the concept of sustain-able development into our corporate strategyand operations, and promote corporate develop-ment while not forgetting our social responsibility,thus contributing to the well-being of the globalcommunity of health for all.
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Message fromthe Chairman
iRay Technology Company Limited
ChairmanTieer Gu
About Us
iRay Technology is a digital X-ray key component and comprehensive solution provider that is oriented by thetechnology trend in the full value chain and aligns its technological capability with international standards. Found-ed in 2011 and listed on the Shanghai Stock Exchange in 2020, iRay is the first A-share listed company engaged inthe development and manufacturing of key medical device components. To achieve the mission of Improving Liveswith Innovative Imaging Technologies, iRay Technology has been stuck to the vision of iRay X-ray TechnologyEverywhere, helps customers worldwide improve medical diagnosis and treatment, and increases the accuracy ofindustrial testing or security inspection, improves the production efficiency of customers and reduces productioncosts. With a focus on the core values of Innovation, Excellence, Collaboration and Win-Win, the Company contin-ues to use technological innovation and excellent products and services to accelerate the strategic upgrading ofthe industry value chain, so as to create differentiated value for customers in more subdivided fields and providemutual development opportunities for suppliers.
With outstanding R&D and innovation capabilities, the Company has become one of the few digital X-ray detectormanufacturers in the world that masters the four main sensor technologies of amorphous silicon, indium gallium zincoxide (IGZO), flexible screen and complementary metal oxide semiconductor (CMOS) and has the capability of massproduction at the same time. In addition, the Company has also mastered the core technologies related to scintilla-tion material of detector, read out integrated circuit (ROIC), and medical image algorithm, and manufacturing tech-nology of core components inside digital X-ray equipment, such the high-voltage insulation technology, high-voltageinverter power topology technology, special auxiliary power technology, barium tungsten cathode technology,liquid metal bearing technology and flying focal spot technology.Given the solid foundation built up on its core technology, iRay Technology takes every chance to optimise theproduct and business layout. The Company’s key products include such components as flat panel detector, lineardetector and tubes, integrated X-ray source, and high-voltage generator. At the same time, by virtue of advanceddigital imaging software working in collaboration with panel detectors, we provide tailored image chain solutions tocustomers in various industries like medical and industrial sectors. In terms of the medical field, X-ray detectors aremainly used for medical diagnosis and treatment. Our products can produce clear images of high frame rate andhigh resolution in screening, diagnosing and treating human and animal diseases with low radiation, helping doctorsmake more accurate professional judgments. In the industrial field, the products are basically applied to portablenon-destructive testing, power battery inspection, semiconductor back-end package inspection, security checksand other scenarios, to provide customers with a lightweight, long-lasting, high protection level inspection experi-ence. Meanwhile, according to the different working modes of digital X-ray detectors, the Company has two cate-gories of products: static and dynamic digital X-ray detectors. In key dynamic areas, the Company has overtakenforeign enterprises by developing core technologies such as CMOS and IGZO to promote domestic substitution.
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iRay Technology ESG Report 2023
Vision
Value
Corporate culture
Innovation, Excellence,Collaboration and Win-Win
Mission
Improving Lives with InnovativeImaging Technologies
iRay X-ray Technology Everywhere
The types of detectors for medical and industrial applications that the Company has mass production capacityare as follows:
Field
Medical
General TethedSeries
Dynamic / Static
Dynamic / Static
Dynamic / Static
General WirelessSeries
StaticVeterinary Series
Used in fixed digital radiography (DR) to support digital X-raydiagnosis of human chest, abdomen, bone, soft tissue and gas-trointestinal tractUsed in mobile DR and fixed DR to support digital X-ray diag-nosis of human chest, abdomen, bone and soft tissueUsed in X-ray imaging equipment for the veterinary purposeto support the digital X-ray photography and diagnosis needsof all parts in small and large animals
Industrial
Detector Range / TypeApplication
C-arm SeriesDynamic
Used for C-arm system/digital subtraction angiography (DSA)to support orthopedic surgery and cardiography, neuroangi-ography and other interventionsMammographySeries
Used in full-field digital mammography (FFDM) to support fullfield digital mammography and digital tomography 3D imag-ing, and to screen and diagnose human breast cancerRadiotherapySeries
Dynamic
Used in radiotherapy equipment and can be integrated withthe linear accelerator in X-ray medicine, radiosurgery appli-cations and proton therapy systemDental IntraoralSeries
Static
Used in dental intraoral X-ray system to support the clinicaldiagnosis of root canalDental CBCTSeries
Dynamic
/ Static
Dynamic
/ Static
Dynamic
/ Static
Used in dental cone-beam computed tomography (CBCT) tosupport clinical imaging applications such as dental diagnosis,orthodontics, implant-related cephalometric radiography andpanoramic radiographyBattery InspectionSeries
Dynamic
Used in 2D and 3D industrial systems for Electric Vehicle (EV)battery / lithium battery inspectionIntegrated circuitand electronicmanufacturinginspection Series
Dynamic
Used for non-destructive testing (NDT) inspection of integrat-ed circuit and electronic manufacturing involving the manufac-turing/assembly of electronic components, printed circuitboard (PCB) printing, semiconductor packaging, etc.Casting Inspec-tion Series
Used for NDT inspection of casting inspection such as metalcastings, structural parts and pressure vessels, etc
StaticPipeline Inspec-tion Series
Used in portable industrial NDT systems for pipeline weldingquality inspection such as identifying weld bead, surfacepores and cracks, etcSecurity Inspec-tion Series
Used for different aisle size security machines or mobile secu-rity inspection devices for luggage, parcel inspection andpublic security inspection
iRay Technology is a well-known company in the global digital X-ray detector industry, and has been recognisedby many leading manufacturers in the medical and industrial fields. As of December 31, 2023, products producedby the Company have been sold to more than 80 countries and regions, with a total global shipment of over 300thousand X-ray detectors.
0910
NDT1717BA (First Non-Destructive Detector)
Pluto 1216X (High-end DSA CMOS Detector) Mammo 1012P Mammography (Ultra High Resolution Panel Detector CMOS Mammography)
DTDI128S1 (First High-speed TDI Scanning Camera System)Mars 1717V5 (First Multifunctional Motion Detector)
Mercu 0810DE (First Duel-Energy CT Detector)
iRay Technology ESG Report 2023
HistoryFrom static to dynamic, from the medical field to the industrial field, after 13 years of development, the Company has gradually transformed from a static medical detector enterprise to a supplier of X-ray key components and comprehensive X-ray solutions,and has become a well-known enterprise specializing in key components, such as detectors, high-voltage generator, integrated X-ray sources, and Anti Scatter Grid (ASG), etc., and comprehensive X-ray solutions. In 2023, we kept exploring new fields. Whilerealising cross-technology innovation for scientific instruments, we broke the equipment monopoly in the field of closed microfocus X-ray tubes. We translated our forward-looking strategies into actions by positioning our factories and R&D centres aroundthe world, so as to lead the upgrade of digital X-ray imaging technology.
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2012-20132014-20172018-2023
2011
2012
2015
2013
2014
2016
2017
2018
2020
2019
2021
2022
2023
2011
iRay Technology ESG Report 2023
iRay Technology was foundedCompleted the testing anddelivery of the first product,breaking foreign monopolieson the domestic market
Cesium iodide project waslaunched and put into opera-tion
Strategic cooperationwith Siemens and PhilipsTotal Shipment exceeded
1.ooo units
Strategic cooperation withKonica and Wandong MedicalLaunch of the first wirelessproductU.S. leader in the economicalDR detector industry
Launch of the first dynamicproductNo.1 in domestic flat paneldetector shipments
Strategic cooperation withShanghai United ImagingShipped nearly 4,0oo units
Started to invest in new fieldssuch as medical dynamics,indus-try, pets,and security checkTaicang factory putinto operationNearly 1,ooo units shipped
Launch or the first IGZO flatpanel detectorSuccessful development ofdental products
Able to manufacture flexibleX-ray detectorStarted operation of theKorean plantShipped over 11,ooo unjts
Successfully listedon theShanghaiStock ExchangeSTARMarketMass produceddental detec-tors and LDA
Mass produced detectorsfor new energy batteryinspection
Issuance of the first convert-ible corporate bondCompleted investments in keycomponents and integratedsolutionsfor X-ravs
The U.S.factory put into operationThe Haining and Taicang Phase IIfactory put into operationMass produced microfocus closedray tubesOpen up a new track of scientificinstruments (Launch of QRGA OISseries products)
Stage I Establishment and R&DStage I MarketdevelopmentStage III Scale-upStage IV Locally leading
iRay Technology, together with another 6 enterprises inShanghai, was selected as National Enterprise TechnologyCentre (30th Batch) in 2023. The title of National EnterpriseTechnology Centre is one of the most influential technicalinnovation platforms granted by departments of the NationalDevelopment and Reform Commission, Ministry of Science andTechnology, Ministry of Finance, General Administration ofCustoms, State Taxation Administration. It comprehensivelyrecognises the technological accumulation and innovative tal-ents of the winning companies.
Memorabilia of iRay Technology in 2023
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01 Recognised as "National Enterprise Technology Centre"
The Company gained high recognition by the Shanghai Munici-pal People’s Government with three honourary titles of Inno-vative Enterprise Headquarters, Private Enterprise Head-quarters and Regional Headquarters in Pudong for itsindustrial role, resource allocation, sci-tech innovation, qualityand efficiency, functional complexity, leading effects and eco-nomic contribution.
Strength recognised by the government
Following the Pudong High-Value Patent Award and thetitle of Shanghai Intellectual Property Demonstration En-terprise, iRay Technology was then awarded the title of Na-tional Intellectual Property Demonstration Enterprise byChina National Intellectual Property Administration after pro-cedures of enterprise evaluation, recommendation, reviewand confirmation. These awards illustrate the Company’sstrength in IP management and its leading innovation excel-lence and core competitiveness.
03 Innovation excellence winning national honours
At the European Congress of Radiology (ECR) in March 2023,iRay Technology exhibited four technologies: wireless Intelli-gent Automatic Exposure Control (iAEC)/Intelligent ScatteredRay Removal Algorithm (iGrid)/Automatic Exposure Detectionfor Full-Fledged Plates (iAED)/Imaging of Dual-Energy (iDE), aswell as a full range of CMOS flat panel detectors and high-volt-age generators.At the China International Medical Equipment Fair (CMEF) inMay 2023, iRay Technology launched Pluto 1212X/1216X, a me-dium-view CMOS flat panel detector for interventional diag-nosis and treatment of heart, head, abdomen and lowerextremity.
At the Radiological Society of North America (RSNA) in Novem-ber 2023, iRay Technology demonstrated its optimised intelli-gent products and innovative wireless dynamic multifunctionflat panel detectors. iRay Technology practices its originalintention of boosting the industrial development with itsstrength in hardcore technology.
05 Earnest practice of the original purpose of boosting the industrial development
Thanks to its cooperation with leading companies in the X-rayimaging industry for years and its high quality products andservices, iRay Technology received continuous recognitionsfrom various customers, including the 2023 Neusoft - Out-standing Supplier Award and the 2023 Carestream - Inno-vation Award.
iRay Technology has been working on detectors for more than ten years, embarks on exploring new areas and making technological breakthroughs. The Company has built up excellent reputation within the industry and has won widespread recognition andpraise from the society. In 2023, with its strong comprehensive strength, continuous innovation of advanced products and high-quality patent accumulation, the Company won various awards for active participation in peer-to-peer exchanges, contributionsto the industrial development and multiple new ground-breaking products.
04 Reputation built up with brand strength
iRay Technology ESG Report 2023
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iRay Technology introduced Mercu 0810DE, the first single-ex-posure dual-energy X-ray detector for dental CBCT and pan-oramic imaging. Supported by iRay’s patented dual-energytechnology and equipped with double-layer thin film transis-tors (TFT) and scintillation materials in different thickness, thismodel enables single-energy scanning of radiation sources.Combined with mathematical algorithms, this product gener-ates standard images as well as images of soft tissues andimages of bones with one exposure. Apart from shorteningexamination time and dramatically reducing radiation to thepatient, the detector also solves the problem of motion artifactexisting in the dual-energy system that requires two expo-sures.
06 A step forward in detector R&D: from single-energy to dual-energy
iRay Technology launched its first Residual Gas Analyser (RGA)series product with completely independent intellectual prop-erty rights - QRGA OIS series RGA, realising cross-technologyinnovation for scientific instruments.As a derivative of Mass Spectrometer, RGA can facilitate pro-duction and enhance efficiency after being integrated intointelligent manufacturing systems, thus gaining wide applica-tion in semiconductor manufacturing and display panel manu-facturing (including Organic Light-Emitting Diode, OLED). Thelaunch of this product represents a leap forward of iRay Tech-nology in the localisation of a further core component.
07 Active exploring in the field of scientific instruments
After years of planning and investment, iRay Technologyachieved the mass production of 90kV, 130kV and 150kV micro-focus closed ray tubes in 2023, which greatly accelerated thelocalised production of key components for online/offlinehigh-precision industrial inspection equipment. In the sameyear, the Company completed the research and developmentof the 180kV microfocus closed ray tubes, which broke the mo-nopoly by imported products in this field.
08 Breaking the monopoly with 180kV microfocus closed ray tube
iRay’s Taicang factory phase II was put into production; theinfrastructure of the Hefei factory was basically completed;the U.S. factory was in operation. The number of factoriesworldwide reached six, the factories are in Jiangsu Taicang,Zhejiang Haining, Anhui Hefei, Chengdu, Seoul (Korea) andCleveland (U.S.). The headquarters and R&D centre in Cam-bridge (an R&D and innovation base dedicated to the R&D ofkey technologies used in digital X-ray detectors) started themain structure construction. iRay Technology translated its for-ward-looking strategies into actions to lead the upgrade ofdigital X-ray imaging technology across the world.
09 Accelerated implementation of the one headquarters and six factories layout
iRay Technology upgraded its overseas service system. The U.S.technical services centre has increased manpower and equip-ment to provide support on maintenance and on-site service.We also set up a new technical service centre in Chennai, India(technical services centre amounting to 9 globally).In doing so, iRay Technology improved its technical support andservices for overseas markets and customers.
10 A global presence
On 14 October 2023, iRay Technology released the restrictedstock and stock option incentive scheme (draft), proposing togrant 3 million stocks (including 1 million restricted stocks and 2million stock options) to those deserving incentives, accountingfor 2.95% of the total share capital as at the announcement.The first phase of the scheme covered a broad group of 455recipients, 36.78% of the total number of employees in 2022.Among them, the undiscounted stock options are mainly grant-ed to middle and senior managements, demonstrating theCompany’s confidence in long-term development and stockprice.
11 Expansion of the equity incentive system
iRay Technology ESG Report 2023
Case
During the Reporting Period, on the basis of maintaining good communication with investors, we established anInvestor Relations Department to strengthen the response to the concerns of the secondary market about iRayTechnology and further improve the investor communication mechanism. Our Investor Relations Department,headed by the Assistant Vice President, conducts joint investor communication activities with the Board Office on aday-to-day basis, including organizing investor open day in iRay Haining and iRay Hefei to promote on-site visitsand face-to-face exchanges with investors. We also conducted reverse roadshows in Beijing, Guangzhou andShenzhen, actively participated in strategy meetings, and organized regular report conference calls. At the sametime, during the Reporting Period, we organised 4 performance explanation sessions, participated in 1 collectiveroadshow of Shanghai Stock Exchange for high quality development companies, issued 87 announcements and an-swered 20 investor questions through Shanghai Stock Exchange E Interactive Platform, which further strengthenedthe quality of investor communication and improved the transparency of information. In order to actively receiveinvestors opinions and feedback, we set up a dedicated telephone hotline and e-mail for investor relations duringthe Reporting Period, and treated online questions, calls and inquiries on investment in a serious and responsiblemanner, so as to improve the quality of investor communication and interaction.
In addition, in order to implement the Shanghai Stock Exchanges initiative of improving quality, increasing efficiencyand focusing on returns for companies listed on the Science and Technology Board, iRay Technology has integratedthe concept of investor-oriented into the companys development, and continues to optimize its operations, stan-dardizes its governance, and actively share the achievements of enterprise development with shareholders. Duringthe Reporting Period, we successfully implemented and completed the share repurchase program, during which thecompanys stock price steadily increased. We also distributed a total cash dividend of RMB 210,805,251.40. The com-pound annual growth rate of dividends over the past three years was 70.46%, with the annual cash dividend amountaccounting for more than 30% of the companys net profit each year.
Building internal control is not only a regulatory requirement for listed companies, but also a foundation for thelong-term robust development of enterprises. The Company has formulated corporate governance policy documentssuch as the Internal Audit Policy in accordance with laws and regulations and normative documents, such as the BasicStandard for Enterprise Internal Control and the Guidelines for Evaluation of Enterprise Internal Control, and strictlycomplies with them in actual operation.We make continuous improvements in the Company’s internal audit, and refine the risk control mechanism, account-ability system, risk prevention and control system, internal contract management system, and relevant managementstandards, processes, and policies, to further standardise our operations. During the Reporting Period, we carried outinternal audit over matters like expense reimbursement, key suppliers import and information security, and improvedour management in a targeted manner to further improve the management level of the Company.
iRay Technology participated in the Roadshow of Shanghai Stock Exchange for HighQuality Development - Livelihood Service event.On 24th October, 2023, iRay Technology sent representatives to participate in the roadshow for high qualitydevelopment companies hosted by the Shanghai Stock Exchange. Our representatives made a presentationon the companys business, core technology, corporate advantages and other aspects. In the future, with afocus on the national strategic planning, international leading trends, and with innovation as the drivingforce, iRay Technology will strive for advanced manufacturing and high-end equipment in the digital imagingindustry. In addition, with the help of the constantly optimised capital market, the Company will return to theinvestors with excellent performance, and take the initiative to assume social responsibility, to be ahigh-quality listed companies.
Sustainable and healthy development of a company necessitates sound corporate governance. Attaching greatimportance to governance codes, iRay Technology strictly adheres to the Company Law of the People's Republicof China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Com-panies and relevant laws and regulations. In addition, the Company effectively implements the Articles of Associa-tion to improve the governance structure, strengthens information disclosure and investor relation management,promotes modernisation of governance capabilities, and drives high-quality development of the Company.
iRay Technology has established a governance structure with shareholder meetings, board of directors, superviso-ry board and senior management as the main body structure. This structure standardises the operational man-agement process and provides organisational assurance for efficient and stable operations. The Companysboard of directors has established audit committee, nomination committee, remuneration and appraisal commit-tee, strategic committee, and independent director committe with clear responsibilities for each committee, ensur-ing rational allocation of resources and scientific and efficient decision-making. As of December 31, 2023, the Com-panys board of directors has 8 directors, including 3 independent directors. During the Reporting Period, the Com-pany held 20 board meetings and committees meetings, and reviewed 62 proposals.
The Company puts a high value on information disclosure. We strictly follow the Regulation on Information Disclo-sure of Listed Companies, the Listing Rules of Shanghai Stock Exchange and relevant laws and regulations. Wehave formulated the Information Disclosure Management System and other relevant rules to carry out the Compa-ny’s information disclosure in an orderly manner.
We are concerned about investor demands and maintains close interaction with investors, we formulate and strict-ly enforces relevant rules such as the Investor Relations Management System. We actively organise investor activi-ties, issue announcements, and respond to questions raised by investors on the Shanghai Stock Exchange E Inter-active Platform. We carefully listen to investors’ suggestions, and ensure that all investors have equal access toinformation disclosed by the Company. The Company places great emphasis on safeguarding investor rights andclosely monitors investor concerns, evaluation matters, improvement suggestions, etc., strengthening investor rela-tions management.
Sound Corporate Governance forSustainable Development
Enhancing Corporate Governance
Improving investor communication
Advancing Risk Management
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021-50720560-8311
Hotline
ir@iraygroup.com
iRay Technology ESG Report 2023
Shareholder meetingSupervisory
boards
Boardof directors
Audit committee
Nominationcommittee
Remuneration andappraisal committee
Strategycommittee
IndependentDirector Committee
iRay Technology regards integrity and honesty as thefoundation of a company. During the Reporting Period,iRay Technology formulated and published the firstResponsible Business Alliance (RBA) ManagementManual, which requires the Company and its partnersto practice the highest ethical standards and specifiesthat the management representatives should super-vise the effective implementation of the relevant man-agement system. We have formed an efficienttop-down closed-loop management system to driveintegrity, and prioritise the protection of IP and tradesecrets. The purpose is to effectively prevent data andprivacy leakage through a perfect information securitymanagement mechanism and safeguard the stablecorporate operation.
The Company strictly comply with relevant laws and regulations, including but not limited to the Company Law ofthe People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, the Anti-Mo-nopoly Law of the People's Republic of China, and the Interim Provisions on Prohibiting Commercial Bribery, toclarify the companys code of ethical business conduct.Under a well-structured management framework and effective management mechanism, the Company has widelyestablished and implemented anti-graft and anti-corruption policies on employees and suppliers, and prohibitedany form of bribery, embezzlement, extortion and misappropriation of public funds. We adhere to the higheststandards of integrity in all our business interactions and implement monitoring and reinforcement procedures toensure compliance with honest operation requirements (including the commitment, provision, offering or accep-tance of any bribe). We also provide internal appeal channel for employees found to be in violation of integrityrequirements. We also conduct regular compliance training for our employees, management, and directors tostrengthen awareness of business ethics, and endeavour to ensure that our internal personnel are fully aware ofand comply with the relevant policies and regulations regarding honest operation. During the Reporting Period,we conducted business ethics and compliance training sessions, covering 100% of full-time employees.For external parties, we endeavour to ensure an ethical and honest business environment. The Company hassigned Confidentiality Agreements with our suppliers and customers to clearly stipulating the standards involvingbribery, insider trading, conflict of interest and other aspects, and to strictly implement the anti-bribery and an-ti-corruption concept. The Company also requires suppliers to sign the Letter of Commitment on Integrity in whichthey promise not to provide bribery of any form, illegitimate gains, etc., to related persons and stakeholders. Inaddition, the Company sets up uninterrupted complaint channels for interested parties, like email legal.dept@iray-group.com, and encourages persons concerned to report any noncompliance they discover and identify tocombat corruption.To protect the legitimate rights and interests of whistle-blowers as well as to create a corporate culture of integ-rity, the Company has incorporated Identity Protection and No Retaliation into its business ethics policy. Byallowing anonymous report, keeping confidential the whistle-blowers identity and other information, and estab-lishing anti-retaliation measures, we aim to protect the rights and interests of whistle-blowers and ensure thatthey can fully fulfil their right to monitor. During the Reporting Period, the Company had no violation of businessethics.
Complying with Business Ethics
Adhering to Integrity Operation
Guarding Business SecretsWe regard business secrets as an important indicator of corporates’ core competitiveness, and we have formulat-ed the Information Confidentiality Management Standards to regulate and manage the scope, classified level, andprotection measures of confidential information. Varying from the multi-level confidentiality in office, R&D, produc-tion and other places, the Company authorises different levels of access control. It defines the scope of activitiesfor employees and visitors to prevent leaks. During the Reporting Period, the Company continued the tradition oftrade secret protection training by conducting training for all employees. The training covers the scope of tradesecrets, confidentiality requirements, daily considerations, typical cases and related risks and responsibilities. Atthe same time, we implemented a series of management initiatives for our employees and partners to strictlyguard trade secrets.
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iRay Technology ESG Report 2023
Confidentiality of identityand nonretaliation
policy
InformationdisclosureFair trade,advertising
andcompetition
Intellectual
propertyprotection
Business
ethics
Integraloperation
iRay TechnologysRBA Management
ManalEthical Standards
NoillegitimategainsPrivacyprotecticn
Business partners
Resigned and retiredemployees employees
Clarify the employeesresponsibilities for protect-ing business secrets in alllabour contracts and em-ployment contracts andemployment contractsRequire all employees tosign the Business Confiden-tiality andWork ProductAgreement, which requiresemployees toperform theirconfidentiality responsibili-ties and obligations
Set up a Confidentiality Agreement signing process before conductingbusiness secret protectionSign purchase agreements with suppliers,which contain clear stipula-tions on issues such as ownership of rightes,licensing scope,andinfringement liability
In-serviceemployees
Require them to signtheNotice of Dos and DontsAfter Resignation andre-turn relevantdocuments,andinform them of theirre-sponsibilities anddurationfor confidentiality
Employees
? Protecting Intellectual Property? Ensuring Information Security
The Company strictly abides by laws and regulations such as the Patent Law of the People's Republic of China, theTrademark Law of the People's Republic of China, and the Enterprise intellectual property management, andtakes multiple measures to protect intellectual property effectively and to maintain the competitive advantage ofindependent innovation. During the Reporting Period, we were recognised as National Intellectual Property Ad-vantageous Enterprise by the State Intellectual Property Administration (CNIPA), which fully demonstrated ourhigh-quality IP management and product innovation capability.iRay Technology has established a sound system of intellectual property rights management and formulated theIntellectual Property Manual, which regulate the management of the Companys intellectual property such as pat-ents, software copyrights, trademarks, integrated circuit layouts, etc. Also, the Company has established an intel-lectual property management department and set up intellectual property liaison officers in each relevant de-partment to facilitate the promotion and communication of intellectual property management. Besides, iRay Tech-nology has formulated and followed the Intellectual Property Infringement Risk Management System, to stan-dardise the Companys mechanism for responding to intellectual property infringement or being infringed upon,thus controlling such risk. During the Reporting Period, we formulated the Patent Infringement Risk RegistrationPolicy to standardise the classified patent management and further reduce the risk of patent infringement.To prevent the occurrence of intellectual property infringement, the Company monitors the changes in intellectualproperty rights in the industry. We keep up with the intellectual property dynamics of industry peers by using intel-lectual property database. For the technical routes that the Companys R&D centre focuses on, the Companymonitors them on a multi-frequency basis to avoid the risk of infringement or possible infringement during the R&Dprocess. Once the clue of patent infringement is detected and verified, the Company sets up an emergency teamto research and collect evidence of damages caused, properly safeguarding its legitimate rights and interests bylegal means. In the event of a patent-related dispute or alleged patent infringement, the Company carries out riskprediction, grades the incident and takes action accordingly. In addition, we require suppliers to sign the Letter ofCommitment to No-Infringement in Products, in which they undertake to supply products without any infringementof the IP of third-party authorised licensor. During the Reporting Period, the Company had no infringement of IP.To fully integrate the creation and protection of IP into the daily operation of the Company, we regularly carriedout relevant training to strengthen the building of IP culture. In addition to providing IP-related training to new em-ployees in batches, we have established a four-tier IP training system, which covers training for all employees, R&Dtraining, management training and intellectual property rights (IPR) training, to help employees acquire the skillsrequired for their job functions and to effectively implement IP management.
We strictly comply with the laws and regulations on information security and privacy protection in the country orregion where we operate, including but not limited to the Cybersecurity Law of the People's Republic of China, theAdministrative Measures for the Graded Protection of Information Security, etc. To ensure network and informa-tion security, the Company has promoted the three major initiatives: technological empowerment, knowledge dis-semination, and institutional safeguards to comprehensively conduct information encryption, anti-virus, and databackup.The Company utilises a professional data leak prevention system and transparent encryption technology at thedriver level to secure data encryption and ensure the security of data use at source. We install computer securitysoftware in internal computers for data encryption and virus prevention to ensure that only authorised personnelcan view and edit classified documents. The Company formulated the Rules on Data Backup Management in thelight of the actual situation, educated the staff about data backup and clarified the management process of databackup and recovery. Additionally, the Company provides its employees with enterprise email accounts that havebuilt-in antivirus and email interception features, and periodically sends out protective reminders on informationleaks, fraud, and other security issues via email.Beyond that, we have formulated the IT Business Continuity Management Specification. Other measures includeappointing system administrators, and assembling an emergency response team and a disaster recovery team toensure that dedicated personnel are in place for predicting and monitoring major information security events orsecurity crises that may affect the Company’s network and information systems, as well as to ensure that theCompany’s network and information systems are able to recover promptly upon information security events.During the Reporting Period, the Company backed up the data in servers and various R&D and administrative sys-tems and through the integration of these systems, we have realized real-time data exchange and effectivelyavoided the risk of mutual attacks and data leakage of systems, so as to fully safeguard information and datasecurity.
2122
iRay Technology ESG Report 2023
Improving ESG governanceiRay Technology sticks to the vision of iRay X-ray Technology Everywhere and continues integrating ESG into its operations. The Companyconstantly optimises and improves the companys sustainable development management system, and actively promotes the in-depth inte-gration of ESG concepts with the companys strategy and business operations. The Company continues to focus on ESG issues such as prod-uct quality, environmental protection and employee health and the progress of related work to achieve long-term value creation.We firmly believe that continuous improvement of ESG management mechanism is crucial to the implementation of the Companys sustain-able development strategy from top to bottom. We have set up a cross-departmental ESG working group to manage and execute dailyESG-related affairs. The ESG working group, led by the Board Office, consisting of key personnel from various departments and core per-sonnel of our subsidiaries, is responsible for the management and execution of related matters, in order to fully implement ESG manage-ment initiatives.Sticking to the principle that internal policies must be directive, systematic, coordinated and advanced, iRay Technology clearly stipulatesits social responsibility policy, environmental policy, occupational health and safety policy, business ethics policy, as well as the specificrequirements and measures under each policy in the RBA Management Handbook, and requires suppliers and other partners to jointlycomply with the relevant management requirements, hoping to collaborate with all stakeholders in the value chain to jointly achieve respon-sible corporate governance and operation.
2324
iRay Technology ESG Report 2023
Stakeholder CommunicationAssessing Material Issues
The Company attaches importance to the communication with various stakeholders, including government depart-ments and regulators, shareholders and investors, employees, customers, suppliers, partners, and communities. TheCompany values communication and exchange with stakeholders through various channels to understand their de-mands and expectations in ESG areas, provide timely feedback, and formulate ESG management strategiesbased on the communication results.
In order to identify the key areas of focus for iRay Technology’s ESG work, the Company regularly appoints pro-fessional organisations to assess material issues. The Company conducts material ESG issues assessment throughindustry analysis and surveys on internal and external stakeholders to understand their expectations on the Com-panys ESG performance. The Company combines the survey results with its business operations, identified andprioritised important ESG issues for its operations and sustainable development, and uses them as an importantreference for continuing to carry out ESG management and disclosing ESG information.
Taking into account expert opinions, actualbusiness operations, and industry developmentcharacteristics, the Company identified 20 ESGissues in three categories (governance, socialand environmental), including:
2625
The materiality assessment is carried out in the following steps:
Step 1: Identify material ESG issues
To secure accurate and adequate assessment results, the Com-panys management and ESG directors reviewed and recon-firmed the results. During the Reporting Period, as there were nosignificant changes in the Companys business operation model,we reviewed the ESG issues and the results of the materialityassessment and concluded that the results were still applicableto the Company, and the final results are as follows:
Step 3: Verify the assessment results
Through questionnaires on internal and external importance tostakeholders and internal interviews, the Company assessed theimportance of key ESG issues from two dimensions - impor-tance to iRay Technology and importance to stakeholders,and drew a materiality assessment matrix based on the actualsurvey results to determine the importance of the CompanysESG issues.
Step 2: Analyse the importance of the issues
iRay Technology ESG Report 2023
Business ethicsCompliance managementCorporate governanceIntellectual property protectionInformation security and business confidentialityProduct quality and safetyR&D innovationCustomer service managementSupply chain managementEmployee training and developmentTalent attraction and retentionOccupational health and safetyEmployee diversity and equal opportunitiesEmployee rights protectionInclusive medical careCommunity and public welfareEmissions managementResource recyclingBetter energy efficiencyResponse to climate change
GovernanceSocialEnvironment
High
High
LowLow
Importance to iRay Technology
Importance to Stakeholders
Product quality and safetyCompliancemanagementCorporate governanceTalent attractionand retentionOccupational health and safety
Customer service managementEmployee rights protectionSupply chain management
Employee diversity andequal opportunities
EmissionsmanagementResource recycling
Inclusive medical care
Employee trainingand developmentResponse toclimate change
Community and public welfare
Better energy e?ciency
Information securityand business con?dentialityBusiness ethics
Intellectual property
protection
ESG materiality matrix of iRay TechnologyGovernanceSocialEnvironmental
R&Dinnovation
Compliance management Commitment andwin-win developmentSupply chain managementAnti-corruption and business ethicsResource recyclingCommunity-based charity and developmentInclusive medical careEmissions management
Public welfare actionsMedical aid assistanceBusiness presence in developing countriesGreen operation and management
Partnership agreementSupply chain management and communicationSupplier meetings and trainingReporting channelsGreen supply chain management
Governmentdepartments andregulators
StakeholdersIssues of concernCommunication and response
Shareholders andinvestors
Employees
Customers
Suppliers andpartners
Community
Compliance managementProduct and technology innovationProduct quality and safetyAnti-corruption and business ethicsGreen operationBetter energy efficiencyCompliance managementReturn to shareholdersCorporate governanceInvestor relationsProduct innovation and intellectual propertyprotectionAnti-corruption and business ethicsOccupational health and safetyTalent attraction and retentionEmployee rights protectionDiversity and equal opportunitiesEmployee training and developmentWelfare and compensationProduct quality and safetyCustomer service managementR&D innovation systemCompliance managementGreen products and operationsInformation security and trade secret protectionComplaint feedback and handling mechanism
Professional quality and customer service teamCustomer satisfaction surveyProduct innovation and R&DGreen product designBusiness confidentiality and information securitymanagementCustomer complaint handling
Workplace safety and occupational healthmanagementProtection mechanism of employee rights and interestsSalary and performance managementEmployee promotion mechanismEmployee training programEmployee welfare activities
Shareholder meetingInformation disclosureInvestor meetingNews released on the official website and otherchannels
Daily managementExchanges on meetingsSupervision and inspectionGovernment projectsAdvice and suggestions
ESG Topics in 2023
2728
United Nations’ Sustainable DevelopmentGoals Response
Chapter 1: Operational Excel-lence and Innovation-drivenStrategy
TopicImproving Medical Accessibility for Health andWell-being
With the global economic growth and the advancement of the urban development process in devel-oping countries, accelerating the construction of a graded diagnosis and treatment system and thepromotion of inclusive medical care had become a broad consensus in the global public domain. As aleading company in the detector industry in China and around the world, iRay Technology alwaysadhere to the corporate mission of Improving Lives with Innovative Imaging Technologies. It is com-mitted to promoting the development of the DR market and the sinking of DR system to primaryhealthcare institutions, thus, improving the construction of healthcare infrastructure and betterimprove the health and well-being of patients around the world.We have cooperated extensively with many domestic medical industry customers, providing medicalservices to the countryside, promoting the steady development of the domestic basic medical andhealth service system, and improving the balance of resource allocation and service. Relying on thestrong technical and product support of iRay Technology, several of our customers have won thebidding of the provincial subsidized primary healthcare institutions medical equipment procurementproject in Hunan Province, which has effectively enhanced the accessibility of local healthcare ser-vices as well as the level of comprehensive medical care.We are also concerned about the improvement of medical accessibility in developing countries. As atthe end of the Reporting Period, 70% of our top ten customers are from developing countries. Thecompanys high-quality products have been sold to developing countries including Azerbaijan, Na-mibia, and Jamaica, etc. We have also established overseas customer service platforms in India,Mexico, and other places to provide efficient after-sales service, practising the corporate vision ofiRay X-ray Technology Everywhere by actions. During the Reporting Period, our Mars 1417V wirelessstatic flat panel detector and other products were sold to more than 300 hospitals in India, effec-tively assisting in the construction of the local end-to-end inclusive healthcare system by virtue oftheir clear images, stable and reliable wireless performance and long battery life.
medical service in Azerbaijan and Namibia
SDGsResponseSDGsResponse
Chapter 1: Operational Excellenceand Innovation-driven StrategyChapter 2: Employee Care andTalent DevelopmentChapter 5: Caring for Society andShouldering Responsibility
Chapter 2: Employee Care andTalent DevelopmentChapter 4: Responsible Procure-ment and Resilient ManagementChapter 5: Caring for Society andShouldering Responsibility
Chapter 2: Employee Care andTalent DevelopmentChapter 4: Responsible Procure-ment and Resilient Management
Chapter 5: Caring for Society andShouldering Responsibility
Chapter 2: Employee Care andTalent DevelopmentChapter 5: Caring for Societyand Shouldering Responsibility
Chapter 2: Employee Care andTalent Development
Chapter 3: Low Carbon andGreen Development
Chapter 2: Employee Care andTalent DevelopmentChapter 3: Low Carbon andGreen DevelopmentChapter 5: Caring for Society andShouldering ResponsibilityChapter 1: Operational Excellenceand Innovation-driven StrategyChapter 3: Low Carbon andGreen DevelopmentChapter 4: Responsible Procure-ment and Resilient Management
Chapter 1: Operational Excellenceand Innovation-driven StrategyChapter 4: Responsible Procure-ment and Resilient ManagementChapter 5: Caring for Society andShouldering Responsibility
Chapter 3: Low Carbon andGreen Development
iRay Technology ESG Report 2023
iRay Technology firmly adheres to the value of Innovation, Excel-lence, Collaboration and Win-Win. Taking industry-leading technol-ogy and innovation excellence as an inexhaustible power, and theconstantly evolving product lifecycle quality management system asthe cornerstone, we are committed to providing customers withsafer, more advanced X-ray technology and better services, andbetter serving human health.
2930
Operational Excellenceand Innovation-drivenStrategy
SDGs
iRay Technology ESG Report 2023
Comprehensive Quality ManagementBoosting R&D InnovationProviding Quality Services
The Company follows the Product Quality Law of the People's Republic of China, the Norms on the Quality Man-agement for Medical Devices, and other laws and regulations and establishes a quality management system incompliance with ISO 13485:2016 medical devices - quality management systems - requirements for regulatory pur-poses. The Companys quality management system has passed the quality management system certification in theEU, US, Canada, Australia, Japan and South Korea, complied with local regulations and fully served the Companysstrategic need for global expansion. In addition, iRay Technology and its wholly-owned subsidiaries, iRay Taicang,iRay Haining and High Voltage Technology have passed the third-party audit on EN ISO13485:2016 medical devices- quality management systems - requirements for regulatory purposes. During the Reporting Period, we launchedthe ISO9001 Quality Management System certification programme for our non-medical products, to continuouslymonitor and assess the operation of our internal quality management system and gradually implement systematicmanagement initiatives. As of 31 December 2023, the coverage rate of quality-related certifications at our manu-facturing or operation premises was 100%.
We have established a whole-process quality management structure, covering product demand, design and de-velopment, production and manufacturing, product sales, after sales service and post marketing surveillance. Wehave compiled and implemented the Quality Manual, which specifies the quality policy, quality objectives, qualitymanagement system and other action guides, and use these to guide the Company in establishing, implementing,and maintaining the quality management system, ensuring that the quality management process is standardisedand refined, and safeguarding product safety and stability. Meanwhile, we have integrated the domestic andinternational regulations and standards into the quality management system and make timely adjustments toreflect regulatory developments.
Comprehensive Quality Management
Whole-Process Quality Management
3132
Furthermore, products of iRay Technology have also been widely recognised. As of 31 December 2023, 11 of ourproducts have been certified by the National Medical Products Administration (NMPA) of China, 20 products havebeen certified by the US Food and Drug Administration for medical device (FDA510K) registration, and 19 productshave been certified by the Conformite Europeenne (CE) certification.
iRay Technology and its wholly-owned subsidiaries, iRay Taicang,iRay Haining and High Voltage Technology ISO 13485:2016 medicaldevices - quality management systems certificate
iRay Technology ESG Report 2023
The Quality Policy, Objectives and Management System
Quality Policy
Quality Objectives
Quality Management
System
Customer satisfaction, technical advancement execution oflaws andregulations, process control and accurate and timely delivery offirst-class products
Plan a quality management system to achieve quality objectivesEnsure that the quality management system is continuously refined toreflect relevant changes, and remains integral in this process
Develop measurable annual quality objectives in line with the quality policyBreak down objectives at everylaver involved for detailed implementation
On the basis of continuous improvement of our quality management system and policy documents, the Companyincorporates product concept, product development, design and manufacturing, and life cycle management intoquality management, ensuring comprehensive and effective quality management. We strictly maintain the safetyof products from both R&D and production aspects and strictly controls the quality of products to ensure that itsproducts comply with such standards as electrical safety, electromagnetic compatibility (EMC), sound output, forthe sake of safety and reliability. We have established and implemented the iRay Product Development ControlProcedures for product design and development, based on which we plan and control the design and develop-ment of our products to ensure that the review, verification, validation as well as the design transfer activities ateach stage comply with our internal quality specifications and meet the requirements for production. During theReporting Period, we added new definitions of standards for preventive testing and factory acceptance testing atthe product design transfer stage to provide adequate and effective quality control over pre-market products.
We also closely track the development trend of digitalisation, and use digital means in the production and opera-tion to accelerate digital transformation. We integrated many management systems such as Manufacturing Execu-tion System (MES), Product Lifecycle Management (PLM), Systems Applications and Products in data processing(SAP), Enterprise Resource Planning (ERP) and Office Automation (OA) System with intelligent facilities and equip-ment, in an effort to comprehensively improve the level of automation and intelligent management of productionand operation, so as to improve the management quality and efficiency over factors like quality, safety and cost,and ultimately drive business growth. During the Reporting Period, we have deeply integrated and synchronouslylaunched information management software such as MES, PLM, SAP, OA, etc., which greatly reduces the need formanual operation and improves work efficiency. At the same time, in the face of complex business needs, the inte-grated system has higher flexibility, data accuracy and security, realizing the integration of business and financialmanagement, the whole process management of product lifecycle, supply chain collaborative management anddigital process management.Meanwhile, we deployed various types of equipment to suit the expansion of our business scale, so as to continu-ously promote the development of quality management processes towards automation and refinement. In addi-tion, our subsidiary, High Voltage Technology deployed high-voltage generator aging and reliability automatic testfixtures, which improved efficiency by controlling multiple transmitters simultaneously, and carried out automaticexposure tests to reduce the difficulty of manual operation and effectively achieve accurate feedback of testresults, which greatly enhanced the effectiveness of product quality control.In addition, the Company has developed the Control Procedure of Nonconforming Products to standardise the dis-posal process of nonconforming products found in production process and after delivery. For the nonconformingfinished products or self-made semi-finished products during production, the Company will re-manufacture orscrap them based on the actual situation. When the delivered products are found to be nonconforming, the Com-pany will immediately collect product information, analyse causes and assess risks to see how serious the injury orpotential injury caused by the nonconforming products to patients and users is. Then the Company issues advisorynotices to the regulatory authorities and recalls those products if necessary. During the Reporting Period, we opti-mised the e-flow of non-conformity control, eliminated the record requirements for cause analysis, improvementmeasures and tracking results in the non-conformity process, and revised the triggering rules for Corrective Ac-tions and Preventive Actions (CAPAs), to further strengthen the assessment and control of non-conformities, withcumulative failure rate decreasing year by year. Since its establishment, the Company reported no product recallbecause of quality issues.
In addition, we have established a clear, unambiguous, and complete organisational structure for quality manage-ment, which clearly regulates the responsibilities and requirements of each department and position to ensure theeffective operation of our internal quality management system.
3334
Top management for quality managementOversee the establishment and implementation ofthe management system
Establish a quality management system and effectively implement it asplannedReport to the top management on the performance of the quality system interms of the quality policy, quality objectives, review results, data analysis,corrective and preventive measures and customer complaints and proposesuggestions for revision based on the system operationEnhance employees understanding and awareness of quality regulations andcustomer requirements through internal training publicity,communication, ete.Exchange opinions with the wider industry on quality management system
Top ManagementGeneral Manager
ManagementRepresentatives
Carry out work as required by the quality management system. support, infor-mation, intrastructure and working environment including providing adequateand necessary manpower financial support, information, infrastructure andworking environment.Functional
Departments
iRay Technology ESG Report 2023
Quality Management System
Quality Management System
ProductConcept
ProductDevelopmentWell-establishedQualityManagement system
Life-cycleManagement
Design&ManufactureContinualImprovement
To ensure that our quality policy is accurately and effectively communicated to every employee, we regularly holddiversified internal and external quality-related training and seminars to promote the effective participation of allemployees in quality management through publicity, training, assessment, and internal quality audits, etc., so as toensure the stability and continuous improvement of product quality.During the Reporting Period, we conducted a total of 42 quality related training sessions on various topics like thepromotion of laws and regulations, internal policies and procedures, quality awareness and tools training, covering100% of our employees.During the Reporting Period, we held regular quality seminars in Shanghai headquarters, iRay Haining and iRay Ta-icang, and organised case sharing and on-site analysis training for R&D, production, quality, and engineering staff,so as to enable employees to understand the quality control requirements of design and development, productmanufacturing, etc., and to drive the strict top-down implementation of the Company’s quality culture and qualitysupervision requirements.
iRay Technology firmly believes that independent innovation is the core competitiveness of the Company in theglobal market. We highly value the R&D management and the talent development, keep promoting the innovationof product in multi-domains by enriching and expanding the core X-Ray technology matrix. We are also devoted toproviding the environmentally and socially friendly, high-quality product and completed imaging system solutionsto industrial customers.
Comprehensive R&D management process lays the foundation for product stability and reliability. The Companyhas established a complete process for the design of product technical schemes with multiple control nodes anddeveloped a risk identification and management system to improve compliance, reliability, and predictability ofR&D projects. During the product demand review at the initial stage, the Company will collect and identify informa-tion related to product demands to assess and ensure product safety and compliance, including functions, perfor-mance, availability, safety requirements, applicable domestic and foreign laws, regulations, and standards ofproducts, and requirements to avoid the use of hazardous substances. Meanwhile, the Company set a strict reviewsystem. We will hold a technical review meeting for each design scheme where senior engineers with extensivedesign experience are invited to ensure the safety and completeness of the design scheme.
Building a Culture of QualityBoosting R&D Innovation
Optimising R&D Management
3536
Shanghai Headquarter, iRay Haining and iRay Taicang held quality seminars for 2023
Product design and development process
iRay Technology ESG Report 2023
Productdemand review
Productinitiation
Design anddevelopment
planning
Design anddevelopment
input
Design anddevelopment
Design anddevelopmentoutput
Design anddevelopmentverification
Designconversion
Design anddevelopmentconfirmation
Massproductioncontrol
Post-marketmanagement
As of 31 December 2023, the Company had 514 R&D personnel, an increase of 25.98%, accounting for 30.95% of allemployees, which providing a strong innovation drive and guarantee of R&D strength. Our investment in R&Dreached RMB 262.684 million, an increase of 10.02% compare to that in 2022, accounting for 14.09% of our operatingincome, and we had obtained patent or authorisation for 76 new IPs of various kind (based on the issuance date ofthe certificates), of which 30 were inventions.
The Companys key product, digital X-ray detector, has a wide range of applications, but the demand for digitalX-ray detectors in different scenes varies greatly, which needs a variety of technologies. After more than tenyears of development, with excellent R&D and innovation capabilities, we have mastered sensor design and pro-cess technology, CT detector technology, scintillation crystal material and packaging technology, ROIC andlow-noise electronic technology, X-ray intelligent detection and acquisition technology, and detector physicsresearch and medical image algorithm. The Company has become one of the few digital X-ray detector manufac-turers in the world that masters all the main core technologies.
We are the first in China and one of the few in the world that simultane-ously master the four sensor technologies of Amorphous silicon (a-Si),IGZO, flexible substrate and CMOS, with stable mass production capac-ity and batch delivery.Significant resources have been invested in relevant R&D, and threemajor technical bottlenecks have been resolved, namely, high electronicnoise level requirements, high detector module performance require-ments and high data transmission requirements.We own customised caesium iodide vacuum coating equipment and fullyautomatic ultra-narrow frame packaging technology, realising theindependent production of caesium iodide scintillator films, and carriesout numerous improvements in material science and film processes forthe enhancement of clinical image performance and durability.We have successfully developed analogue front-end +AD chip for digi-tal X-ray detector, low-noise electronic hardware platform andhigh-performance embedded software, and designed sensor driver cir-cuit, high-speed and high-reliability data cross-interface and embed-ded hardware platform, which realised the capture and high-speedtransmission of high-quality detector images, and met the demand forhigh-quality terminal imagesWe have developed three X-ray intelligent detection technologies,including Automatic Exposure Detection (AED), Automatic Exposure Con-trol (AEC) and Automatic Brightness Stabiliser (ABS). Through the wiredand wireless flat panel detector technology with built-in AEC module,we have realised the automatic exposure control of the whole X-raymachine, which meet the demand of the old X-ray system upgrading.We also adopt the intelligent dosage detection technology to replacethe traditional ionisation chamber and improve the dosage control pre-cision, thus providing more precise dose control solution.Through the establishment of the detector physics research depart-ment and cooperation with internationally renowned universities andresearch institutes, we have studied the physics of optical sensors, anddeveloped related algorithms to achieve efficient, high-definition imagecorrection and virtual grating functions to improve image quality. Wehave also successfully developed image processing algorithms andimage workstations based on embedded systems, which have beenwidely used in the new core component products.
Mastering Core TechnologyWe are dedicated to tackling the technological difficulties in the R&D of world-leading digital X-ray detector,high-voltage generator, X-ray tubes and integrated X-ray sources and so on. By assembling a high-quality R&Dteam with a global vision and continuously increasing investment in R&D, we manage to constantly invent and inno-vate advanced technologies in this field. To give more momentum to technical R&D staff and encourage them toinnovate more actively, we have formulated a detailed IP reward mechanism: cash incentives are provided to em-ployees applying for or obtaining IP, and awards are set up to recognise inventors who have made significant con-tributions. During the Reporting Period, iRay Technology had about 110 employees contributing to IP invention.Those who involved in the paper writing as the first author or awarded any high-value patent prize were grantedthe IP Contribution Award.With high-quality R&D team and complete innovation incentives to bring together the solid innovation force, theCompany overcame the difficulties, and has been widely recognised by the outside with excellent professionalstrength.
Nurturing Innovative Team
3738
Case
Patented iAEC method and system won the honour of Excellent Project of PatentIndustrialisation in Pudong New Area
During the Reporting Period, with the patented Intelligent Automatic Exposure Control (iAEC) method andsystem, the Company was awarded Excellent Project of Patent Industrialisation in Pudong New Area. The au-tomatic exposure control method can achieve precise control of exposure irradiation field and exposuredose. It features simple structure, low cost, short imaging cycle, low operation complexity, etc., and thereforehas high innovation and industrialisation value.
The Company's intellectual property as of December 31, 2023
Type of intellectual propertyInvention patentUtility model patentIndustrial design patentSoftware copyrightTrademarkOtherTotal
Newly added in 2023
Cumulative
Detector Design andProcess TechnologyCT Detector Technology
Scintillation Crystal Materialand Packaging Technology
ROIC and Low-Noise ElectronicTechnology
X-ray Intelligent Detectionand Imaging Technology
Detector Physics Researchand Algorithm Development
iRay Technology ESG Report 2023
During the Reporting Period, to further improve the product and business layout and enhance the Company’s com-petitiveness, we further strengthened the strategic layout in integrated X-ray solutions and a range of new corecomponents such as high-voltage generators, high-voltage tubes and integrated X-ray sources. These inputsenable us to drive technological research and form certain technological base. Therefore, we have mastered keytechnologies such as the high-voltage insulation technology, high-voltage inverter power topology technology,special auxiliary power technology, barium tungsten cathode technology, liquid metal bearing technology andflying focal spot technology
Relying on our strong core technology support, we launched numerous innovative products during the ReportingPeriod, which further diversified our product offerings and effectively enhanced our business layout.Innovative Leading-edge Products
3940
Case Residual Gas Analysers RGADuring the Reporting Period, the Company launched the first high sensitivity QRGA OIS series of residual gasanalysers with fully independent intellectual property rights, which are mainly applied to the detection of ionisedgas molecules in the production process of semiconductor manufacturing and flat panel manufacturing.QRGA OIS series residual gas analyser has eight advantages, including stability, flexibility, convenience,real-time accuracy, high efficiency, intelligence, sensitivity and reliability, friendly interface, etc., which canrealize the real-time monitoring of complex gas components. The integration of this series products into theintelligent manufacturing system will strongly assist production and improve production efficiency.
Case High-end Digital Subtraction Angiography (DSA) CMOS flat panel detectorDuring the Reporting Period, the Company made a breakthrough in the core components of the DSA andlaunched the CMOS flat panel detectors - Pluto 1212X and Pluto 1216X - specifically designed for high-end DSAs.These detectors are compatible with interventions and examinations of various body parts such as the heart,head, abdomen, and lower limbs. They are suitable for multi-departmental use and have a wide range of clinicalapplications.These two DSA flat panel detectors offer outstanding performance, including high resolution, high acquisitionspeed, low dose, low image persistence, and strong gray-scale resolution. They match or even surpass the per-formance of similar products from overseas, facilitating the rapid deployment of high-end DSAs in primaryhealthcare institutions and actively promoting industry development.
CaseSingle-exposure dual-energy X-ray detector
CaseSolid-state Silicon Photomultiplier (SiPM) module
During the Reporting Period, leveraging its vertical integration capabilities in optical sensors, the Company quick-ly entered the field of new detector technologies and successfully developed a thermoelectric-cooled sol-id-state silicon photodetector module (TE-cooled SiPM) for use in in vitro diagnostic instruments.The TE-cooled SiPM module product features high sensitivity, wide dynamic detection range, strong stability, highresistance to point noise interference, and flexible readout, which effectively improve detection accuracy andresponse speed.CaseDynamic Wireless V5 Series Detectors
During the Reporting Period, the Company, based on industry user demands, adopted multiple self-developedintelligent technologies and launched an upgraded version of the wireless dynamic/static flat panel detector V5series products, specifically designed for digital radiography (DR) systems and DR upgrade solutions.The V5 series products, built upon the V series, incorporate wireless dynamic technology, enabling high framerate dynamic image acquisition in wireless mode, thus expanding the scope of clinical applications. With the sup-port of intelligent functions, this series of products improves clinical examination efficiency, enhances detectionaccuracy, and reduces dependence on operators. Additionally, the V5 series products introduce several practi-cal features such as voice control, screen display,near-field communication (NFC), and wireless charging technol-ogies. These features allow devices to pair with each other in the absence of a local area network signal, thusexpanding the range of usage scenarios.
During the Reporting Period, the Company introduced the dual-energy X-ray detector Mercu 0810DE for dentalcone-beam computed tomography (CBCT) and panoramic imaging, utilizing patented dual-energy technology.This detector reduces metal artifacts in images, allowing for the simultaneous display of morphological changesand soft tissue status. It provides high-precision images for clinical physicians to develop treatment plans, furtherimproving the success rate of surgeries and treatments.Mercu 0810DE not only effectively eliminates metal artifacts in images but also features high frame rates andsensitivity. It rapidly completes high-quality image scans under low radiation doses. It is suitable for almost alldental fields, including orthodontics, orthognathic surgery, and full mouth implantology.
iRay Technology ESG Report 2023
Developed industry-leading high-voltage tank outstanding for relatively small size andlight weight, and provided a creative solution to the insulation of high-voltage transform-ers, filament transformers, voltage doubling circuits and detection circuitsProvide users with more spatial application possibilities, enabling more hospitals to utilisesmaller spatial layouts for equipmentBased on years of technical accumulation, we have fully mastered the advanced inverterpower supply topology technology and acquired power switching device resources in thefield of power electronicsAble to facilitate the rapid validation and implementation of customised design solutionsbased on different customer requirementsThrough independent R&D, we master key auxiliary power supply technologies such asliquid metal bearing drive control power supply, breaking the monopoly of multinationalcompaniesCompleted the mature technology implementation verification with the trial-producedprototype, and about to start mass production. In the future, it will be widely appliedthrough integrationHad successfully introduced a barium tungsten cathode preparation team with matureexperience, and carried out the work of small-size, high-current-density cathode, andsolved neck-stucking problem of the core technology.Through continuous investment, we have realized the R&D capability of the whole processfrom theoretical design to physical test, in which the key core technologies such as hydro-dynamic calculation, bearing texture laser etching, dynamic balance test, etc. can beindependently owned.Mastered a whole set of electron beam simulation methods after many years in design-ing the CT tube electron optical, capable of realizing the trajectory simulation of the elec-tron beam in the complex electromagnetic environment, with a whole set of design andrealization methods.
High-VoltageInverter Power
TopologyTechnologySpecial AuxiliaryPower Technology
Barium Tungsten
Cathode Tech-
nologyLiquid Metal
BearingTechnologyFlying Focal Spot
Technology
High-VoltageInsulation Tech-
nology
? Sustainable products
iRay Technology has been practising the concept of Green X-ray, hoping to minimise radiation damage to patients,users, and the environment through products with lower clinical doses, better images, and higher efficiency. In addition,we incorporate the concept of green innovation into our product development, promoting lightweight, low-energy,package-saving design, aiming to make a positive contribution to environmental protection in all aspects of the prod-uct value chain. During the Reporting Period, we launched a product design optimisation project to effectively avoidmaterial wastage by reducing redundant power supply filter capacitors for some detectors, replacing chips specificfor a single product and detaching unnecessary power supply chips, while maintaining the product quality and safetyperformance.
To reduce the radiation dose of X-ray to the human body during the imaging pro-cess, the Company develops photon counting technology. Unlike the traditional de-tector composed of a-Si and scintillator, detectors based on photon counting tech-nology are direct detectors. Photon counting technology accurately counts eachphoton, thus improving the contrast and resolution of the image, enabling doctors tosee fine structures more clearly, significantly reducing the radiation dose requiredfor imaging, and providing more accurate photon data, which helps to improve thequality of the image and enhance the accuracy and safety of medical diagnosis. andimprove the accuracy and safety of medical diagnosis.In the medical check-up, some body parts such as the spine and lumbar spine needto be detected in a large area. The traditional detector needs multiple exposures tocomplete the detection, which leads to an increase in the radiation dose of theperson being tested. The Company designs a large detector, Venu1748V, to supportthe imaging of large objects. When detecting long bones and the complete spine, itcan reduce the three exposures required for conventional detection to one, greatlyreducing the radiation dose in imaging of the person being tested and patientexamination time.In terms of dynamic detector design, the Company reduces the radiation doserequired by the detector through improving the scintillator’s luminous efficiency,panel fill factor, and other means to protect the health of patients and operators.Based on the CMOS sensor technology, the Mammo1012P detector can read imagesat a speed of 8fps, and only needs a very low radiation dose.Using our high frame rate pulse high-voltage control technology, the high-voltagegenerator/ X-ray source and X-ray detector can be perfectly synchronised, signifi-cantly reducing the X-ray dose required for clinical patient diagnosis.The TDI detector based on CMOS technology can achieve non-stop exposure andultra-high speed imaging, and greatly increase the signal-to-noise ratio by multipleoverlays of the target signal, significantly improving the scanning rate or loweringthe radiation dose rate requirements, which improves the image quality and miti-gates the radiation dose to the environment.
4142
CaseSecurity CT detector
Green X-ray reducing X-ray radiation dose and protecting human health
Developing photoncounting technology
Venu1748 detector
Reduce radiationdose of dynamic detectorMammo1012PdetectorHigh-voltagegenerator
TDI detector
During the Reporting Period, the Company launched its first industrial spiral CT detector, which is mainly used inareas such as baggage safety check. By establishing a fibre-optic communication link, the detector has the func-tion of real-time data reconstruction while transmitting massive data, which makes it easy for security personnelto check whether there are any prohibited items. Compared with two-dimensional data, the three-dimensionalreconstructed data provided by the detector can provide more details in the image.During the product design and manufacturing, considering the numerous sophisticated processes involved in themanufacturing of the detector modules, we form a special team of dedicated engineers to explore the moduleprocess, research the procedure and the corresponding material, and form a set of special production proce-dure and evaluation standards, ensuring the yield of module product can meet the production requirements.
CaseDigital Time Delay Integration (DTDI) detector
During the Reporting Period, the Company launched the DTDI detector based on the CMOS technology, whichfeatures wider dynamic range, faster response, and lower cost than the traditional TDI detector using CCD Tech-nology. In the actual application environment, the detector can achieve non-stop exposure, ultrahigh-speedimaging, efficient and accurate identification of product defects and capture of quality images with high sig-nal-to-noise ratio (SNR), even when the detection target is moving fast, or the signal is weak.In emerging industrial application scenarios like electronics and batteries, requirements for more accurateinspection are arising, such as ultrahigh-speed online full inspection and 3D inspection of new energy batteries.The DTDI detector can carry out all-round accurate testing of both winding cells and stacking cells to ensure theperformance and safety of the cells during subsequent use. In addition, DTDI detectors have promising applica-tions in food safety. Its multi-stage cascade connection can adapt to the detection size of 230, 450, 600, 900mm,making it applicable to the detection of targets in different environments, and increasing the flexibility in appli-cation: it can be applied for the detection of foreign objects in cans, bags, bottles, boxes, and other food prod-ucts.CaseRarely seen in China 25KW high-end C-arm combined radiation source
During the Reporting Period, the Company successfully developed the rare domestic 25KW high-end C-arm com-bined radiation source and delivered it in small quantities to leading domestic corporations engaged in the man-ufacturing of surgical robot and navigation system. The special L-shaped architecture of the X-ray sourceenables the product to meet the requirement for high-power loading and output while having a more compactvolume than similar products imported, which is the excellent solution for the current high-end applications in thenavigation of domestic surgical robots and interventional diagnostics in middle-C surgical orthopaedics.Case High-end CT high-voltage generator
During the Reporting Period, iRay Technology had become one of the few companies in the globe which success-fully developed and started to deliver the high-end CT high-voltage generator with X and Z bidirectional flyingfocus control function.. With an output power of 32-80KW, the product is compatible with both liquid metal bear-ing and ball bearing high-speed anode rotation drive, which is at the forefront of technology in China and rep-resents a world-leading achievement. It stands out as our technological breakthrough in the development of do-mestic high-end CT high-voltage generator, and further solidifies the technological and talent foundation for theCompany’s medium and long-term growth.
iRay Technology ESG Report 2023
Providing Quality Services
4344
Green design - reducing the environmental impact of products and protecting the green planet
During the Reporting Period, we developed numerous new innovative technologies to further reduce the amount ofradiation or the content of heavy metal elements in our products through precise control and equipment upgrades,hoping to better protect patients’ health.
iGrid Innovative TechnologyiAEC Innovative TechnologyiAED Innovative TechnologyAdvanced digital image pro-cessing technology is adoptedto avoid the fog caused byscattered rays and obtain thesimilar image effect achieved byusing physical grids, whichreduce the dependence onphysical filter grids and simplifythe structure of the entiresystem. It can also improve theutilisation rate of rays, therebysignificantly reducing the inci-dent dose of X-rays.
Intelligent automatic exposuredetection enables low-dose,high-sensitivity exposure in any-where within the full panel. Italso ensures that flat panel de-tectors and high voltage gener-ators can be quickly installedand used without an electricalconnection
The technology realises low-la-tency, high-stability wireless con-trol and real-time dose detec-tion. It does not need externalpower cord and can ensure pre-cise dose control even when ap-plied wirelessly. The restrictionsdue to the use of traditional ioni-sation chambers and wired AECtechnology are therefore elimi-nated, thus improving dose utili-sation, and reducing radiation.
We try to streamline the redundant design in hardware circuits by removing unnecessary electronic materialsand reducing the consumption of electronic components. In addition, we mainly optimise the power supplytopology and improve the overall power efficiency, which reduce the power consumption of the whole ma-chine and heat generation, thereby improve the performance of the whole machine and reducing the loss ofelectronic components.
Reduce the use of electronic components
High Voltage Technology and Palwex Technologies have set strict limits on the use of lead in radiation sourceproducts to achieve an optimal balance between reducing radiation leakage and minimising the use of lead,.Strictly restrict the use of lead
To reduce the frequency of battery replacement in the detector and lengthen the battery life, Mars wirelessdetector has a new low-power mode, which can significantly reduce energy consumption and save batterypower.Energy-efficient Mars wireless detector
The Company follows the concept of green development to improve the wired oral dental detector. Withoutcompromising protection, the Company changes the separate packaging and mixes twenty-seven oraldental detectors in one packaging, which effectively saves packaging materials and reduces the impact onthe environment.During the Reporting Period, our subsidiaries Palwex Technologies and High Voltage Technology separately stipulatedthe power conversion efficiency of high-voltage generators for different applications in their product design outlines,to minimise energy consumption by way of design optimisation.
Improve packaging of Intra-oral dental detector
At iRay Technology, we regard the concept of win-win with customers as the foundation of our long-term develop-ment. The Company has established a complete customer service system, which provides timely insight into customers’needs and improves customer satisfaction by continuously launching innovative products. We have formulated andimplemented the Customer Service Control Process, and made strict regulations on the response time, processingtime and workflow, so as to build a standardised and regulated after-sales service management system and makeevery effort to protect the rights and interests of customers.iRay Technology provides customers with a variety of services such as pre-sales support, after-sales service, profes-sional training, etc. We adopt a flexible assignment mechanism to provide remote support or on-site service throughresident engineers and other professionals based on the actual situation. In addition, we collect customer feedbackthrough a variety of channels, including 24/7 service call, email, and on-site visit, and address customer needs in a timelymanner.During the Reporting Period, we strengthened our service staffing for products in the industrial field and increasedon-site and in-plant services to ensure the timeliness and efficiency of our services. For products in new applicationfields, we carried out a full range of training for our engineers to effectively enhance their skills in the application andtroubleshooting of the products in new application scenarios, to comprehensively improve the quality of our services. Inaddition, our overseas maintenance centres further enhanced maintenance efficiency and timeliness by strengtheningthe management of the maintenance material flow cycle.iRay Technology practices responsible marketing based on the principles of truthfulness and honesty. We strictly abideby the Advertising Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protectionof Consumers’ Rights and Interests, and other relevant laws and regulations of the place where we operate. We arecommitted to carrying out publicity and marketing practices in compliance with domestic and foreign laws and regula-tions, social norms, and ethical standards, and to protecting the rights and interests of customers.We have established Sales Management Procedures and Sales Control Procedures, clearly requiring our sales staff topromote and sell products to customers by using brochures and promotional content in line with the companys normsin a factual, non-exaggerated and non-misleading manner. with realistic, non-exaggerated and non-misleading infor-mation. In accordance with the standard procedure documents, the company checks that product functions claimedand data released to the public have undergone strict experimental tests, and the publicity and advertising materialshave been reviewed and finalized by the Product Department, the Marketing Department and the Legal Department,thus achieving the scientific, authenticity and validity of the promotional materials. In addition, before signing a productsales contract with a customer, the company will remind the customer that relevant information related to the productfunction should be correctly understand, and we make specific agreements in the contract content. to ensure that bothparties correctly understand the specific expressions related to the product function. Meanwhile, in our RBA Manage-ment Handbook, we expressly prohibit employees from misleading or deceiving customers by falsely or arbitrarilyexaggerating the advertising statements. To improve product traceability and avoid product confusion and misuse, weformulated the Marking and Traceability Control Procedures to record and track data related to product production,inspection, sales, and after-sales service. We also disseminate responsible marketing knowledge to employees throughdaily, weekly, monthly and online meetings to raise their awareness on responsible marketing. During the ReportingPeriod, we conducted responsible marketing related training sessions covering 100% of our employees.
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iRay Technology ESG Report 2023
iRay Technology understands that employees are at theheart of iRay Technology’s core strengths that drive thelong-term sustainable development of enterprises. We arecommitted to building efficient and professional talentteam and advanced management system to provide em-ployees with comprehensive protection of rights and inter-ests, competitive salaries and benefits, continuous andcomplete training and development system and a healthyand safe working environment, helping them to explorepersonal growth, achieve career advancement, and toshare fruits of the company’s development.
Employee Care andTalent Development
SDGs
Protecting Employees’ Rights and InterestsOptimising Employees’ BenefitsEmpowering Employee DevelopmentEnsuring Health and Safety
Protecting Employees’ Rights and Interests
Compliant Employment
Diversity and Equal Opportunities
Employee Communication
4748
The Company has formulated and implemented the Social Responsibility Policy in the RBA Management Manual.We are committed to respecting and safeguarding the basic rights and interests of employees, and we adhere tothe values of diversity and inclusion, providing employees with fair development opportunities, building efficientemployee communication mechanisms, and creating a workplace of equality and mutual trust.
We promote diversity in our workforce as we believe that diversity in employee structure is an engine for innova-tion and growth. We uphold the principles of fairness and equality, and firmly oppose any form of discrimination inthe employment relationship, and we never discriminate against employees based on race, ethnicity, colour, socialclass, nationality, religious beliefs, disability, gender, sexual orientation, age, physical ability, political affiliation,political party or marital status. Therefore, we respect and encourage differences and provide a fair stage forour employees to show their talents. In addition, we comply with the Law of the People’s Republic of China on theProtection of Women’s Rights and Interests. We implement equal pay for equal work in the Company, and ensurethat female employees receive comprehensive welfare and care. With the continuous expansion of the Companysglobalisation layout, the Companys global workforce had reached 1,661 and turnover rate of employees is 8% asat the end of the Reporting Period, which indicates that we have made great achievements in team building andoperational efficiency.
We encourage equal dialogue and establish a diversified channels of communication and feedback for employees,and we listen carefully to the voices of employees. We collect feedback from employees through multiple channels,including staff representative meetings, staff representative groups and all centres’ service WeChat groups.Through various activities such as CEO luncheons and employee seminars, we care for and help meet the needs ofemployees. At the same time, the Company has established internal and open channels for appeals and com-plaints. If employees observe illegal behaviour such as forced labour, child labour and discrimination, they canreport through face-to-face talks, phone calls, emails and other measures. The Company will arrange relevantteams to investigate and correct the situation in a timely manner.During the Reporting Period, we held the fifth annual employee satisfaction survey, with the average satisfactionreaching 89.56%, and employee satisfaction shows a trend of increasing year by year compared with previousyears. We collect employees’ feedback from various aspects such as corporate culture, career development,sense of achievement and team satisfaction. According to the reasonable suggestions of employees to the Com-pany and the team, we promote the delicacy management of the team, optimise the collaboration process ofeach department. Through these measures, we have further improved the management level of the Company, cre-ated an organisational culture suitable for the development of employees, and increased their motivation andcreativity.
We strictly abides by the Labour Law of the People's Republic of China, the Labour Contract Law of the People'sRepublic of China, and other laws and regulations of the country and region where we operate. The Companysigns the Labour Contract with employees, in accordance with local laws and regulations and the principles oflegality, fairness, equality, voluntary, consensus, honesty, and credibility, to protect the legitimate rights of employ-ees. Meanwhile, we have established and improved the relevant rules and regulations, such as the Employee Hand-book and the Human Resources Control Procedure Document, in accordance with the law, making clear provisionson recruitment, dismissal, labour contract management, salary, training, performance assessment, and otheraspects.We are committed to complying with internationally recognised labour standards and to respecting and protect-ing the human and labour rights of our employees. We strictly prohibit child labour and forced labour. Duringrecruitment, we investigate the real age of candidates via identity documents and other effective means to pre-vent the unintentional use of child labour. We take prompt action to stop any child labour identified, and arrangephysical examinations for them, and notify the local labour bureau. With the consent of the labour bureau, we willescort the child to his or her legal guardian freely. If necessary, the Company will provide appropriate financialassistance and other resources to ensure the child completes his or her compulsory education. In addition, westrictly comply with laws and regulations, adopting the Standard Hour System to ensure that employees enjoyreasonable and sufficient rest time. We also adopt the principle of consensus for overtime, that is, overtime appli-cations require an approval of the superior department head.
Social Responsibility Policy in the RBA Management ManualProhibit child and forced labour, and reject suppliers or subcontractors using child or forcedlabour;Respect the freedom of employees, and prohibit any form of forced labour;Provide safe and hygienic working and living conditions to ensure the safety and health ofemployees;Promote labour-management cooperation and respect employees’ freedom of associationand right to collective bargaining;Provide an equal and fair working environment and prohibit any form of discriminatory be-haviour;Respect the basic human rights of employees and prohibit any form of degrading behaviour;Schedule production reasonably, and make reasonable arrangements for staffs workinghours as well as their rest and leave;Provide reasonable wages and benefits that meet at least the basic needs of employees.
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Employee ratio
iRay Technology ESG Report 2023
Number of Employees by
Gender
Number of Employees
by Age
Number of Employeesby Educational Background
Number of Employeesby Profession
ManWomanAged ?? and underAged ?? to ??Aged ?? to ??Aged ?? and above
Doctor and aboveMaster's degreeBachelor's degreeBelow bachelor's degree
Finance sta?Administrative sta?research sta?Production sta?Salesman
Optimising Employees’ Benefits
The Company fully recognises and appreciates the efforts made by employees, and therefore continues to opti-mise the remuneration and incentive system and provide comprehensive employee benefits. Through a variety ofactivities to deliver care to our employees, we are committed to a professional and comfortable workplace.
Remuneration and Incentives
We have set up a remuneration system with fairness and incentives for our employees in order to fully mobilisetheir enthusiasm and initiative. We have formulated the Annual Performance and Remuneration Adjustment Pro-gram. Under the program, we define remuneration for different positions and employment levels, and adjust remu-neration based on the annual performance assessment scores of employees. These competitive incentive systemsattract and retain outstanding talents, and provide strong impetus for the Company’s sustainable development.To continuously drive joint innovation and development of employee and company, we have established an intel-lectual property reward mechanism to give cash rewards and awards to employees who play an important role inintellectual property contributions. Meanwhile, the Company handles the registered permanent residence for tal-ented employees, returned overseas students, senior employees and new graduates in Shanghai to enhance em-ployee loyalty. We have applied for government-run talent subsidies, specialised awards for talents in key indus-tries and Pearl Peak Talent, a talent support policy of Pudong New Area in Shanghai, for more than 20 employ-ees. We also publicly reward outstanding employees by organising annual commendation meetings to enhancetheir sense of achievement and belonging to the Company.In addition, we have launched the restricted share incentive scheme to further motivate our employees and sharethe benefits of development with them. During the Reporting Period, we have completed the verification of the listof those eligible for the first vesting period and the second vesting period of the reserved grant portion of theCompanys 2021 Restricted Share Incentive Plan, an actual total of 173,200 shares were vested, covering 244 indi-viduals. On 14 October 2023, the Company released the restricted share and the draft share options incentivescheme, granting 3 million shares to 455 employees for the first time, including 1 million restricted shares and 2 mil-lion. The large scope of the incentive, covering senior management, core technical staff and other core cadres,demonstrates our confidence in long-term growth.
Benefits and Care
The Company strictly abides by the laws and regulations of the country and region where we operate, such as theRegulations on Paid Annual Leave of Employees of the State Council, to ensure each employee is entitled to paidannual leave as regulated. Employees are free to apply for different types of leave as appropriate, such as mar-riage leave, maternity leave, personal leave, sick leave, funeral leave, and injury leave. We encourage employeesto take leave when working overtime. We also provide female employees with tocolysis leave, maternity leave,breastfeeding leave and maternity allowance. While we provide male employees with full paid paternity leave toactively respond to the government’s call for population policy.To improve our employees’ ability to cope with potential risks and accidents, we provide social insurance for do-mestic employees, including pension insurance, medical insurance, injury insurance, unemployment insurance, ma-ternity insurance and housing provident fund. For overseas employees, we provide social benefits including pensioninsurance and medical insurance. In addition, the Company also pay commercial medical insurance for domesticemployees and their children to ensure the health and happiness of the whole family.We care about the physical and mental health of our employees and are committed to balancing their work andlife so as to enhance their quality of life and enjoyment. We arrange free physical check-ups for each employeesevery year and provide cross-park shuttle buses and talent apartment rental services for employees in need. Wealso provide sports venues to encourage employees to relax after work. We also provide birthday benefit cardsand holiday gifts at regular intervals. In addition, we provide hospitalisation reimbursement and wedding andfuneral subsidies for employees. iRay Technology has organized sports clubs including badminton clubs, footballclubs, basketball clubs. We call for enthusiasts and carry out fun activities including badminton, table tennis, bas-ketball and sports meeting to enhance the cohesion among employees and enliven the corporate culture. The twosubsidiaries also organise special activities and distribute holiday benefits on Lantern Festival, Women’s Day, Chil-dren’s Day, Dragon Boat Festival, Mid-Autumn Festival, Christmas Day and other festivals.
Woman’s Day activity
Children’s Day activityLantern Festival activity
Tabloid sports activity
iRay Technology ESG Report 2023
The Company firmly believes that every employee has unlimited potential. We attach importance to the building of talent pipe-lines, and are committed to creating a pioneer team in the industry. We have formulated a fair and clear career developmentpath for our employees and provided fair and transparent performance feedback. We help our employees achieve careergrowth and personal value enhancement through diversified and innovative training systems, injecting vitality into theCompany’s long-term sustainable development.
To provide fair and impartial performance assessment feedback and promote the mutual growth of employees and the Com-pany, we have formulated the Performance Assessment and Rating Plan. This plan provides scientific and effective performancemanagement and a classified performance assessment system. According to the plan, the Company carries out a multi-dimen-sional performance assessment for management and junior staff respectively in terms of performance, competence, work atti-tude and practice of core values. The Company rewards employees according to their performance in order to motivate themand continuously improve their performance. At the end of the performance assessment, department managers will talk to theemployee with a lower performance rating individually to understand the employee’s work performance and provide him/herwith suggestions for improvement. If employees disagree with the results of the performance assessment, they are free to com-municate directly with their supervisors or provide feedback to the relevant departments through an open email address. Mean-while, we have also formulated the Rank and Position System Table to sets the career path in management, technology, salesand speciality for employees in different rank and position. We informed all employees of their career paths by email to make theinformation open and transparent.In addition, we regularly review talent and conduct internal promotion competitions according to the strategic plan to maximisethe full potential of talents and provide promotion opportunities for front-line employees. We give full play to the potential oftalents and work hand in hand with our employees to move towards excellence. Our subsidiaries, iRay Taicang and iRay Haining,has formulated the Management Rules for Blue Collar (Post) Job Orientation and Promotion. Based on the rules, the subsidiariescreate a fair and open competition mechanism, and encourages employees to pursue promotion through internal recommenda-tion or application to achieve career development. During the Reporting Period, iRay Taicang initiated the internal promotioncompetition in the fall of 2023, with a total of 14 employees entering the promotion coaching phase and participating in the pro-motion training courses and the departmental mentor coaching program.
Empowering Employee Development
Performance Management and Promotion
We continue to provide training and growth opportunities for our employees and boost their career development in an attemptto build innovative and dynamic talent pipelines. To achieve the mutual development of the Company and employees, we haveset up and continuously improve the training system by considering the overall strategic development objectives, departmentalperformance objectives and the actual job qualifications. Besides, we formulate training plans by department and function everyyear according to the Human Resources Control Procedure and Employee Handbook. We also arrange full-time trainer to con-duct and control the training program to ensure the effective implementation. We also provide abundant internal and externaltraining resources for all employees. In addition to arranging the Company’s junior and senior managers, professional back-bones, and outbound trainees as lecturers, we also invite external partners such as experts, scholars, and professional traininginstitutions to provide high-quality training and lecture. Similarly, we have set up a rotation system and a mentoring system forfresh graduates. Through a fresh graduate on-boarding camp, we assist them in their career progress to cultivate talents forthe Company.
During the Reporting Period, we organised a total of 216training sessions (including 186 internal training and 30external training). The completion rate of on-the-jobtraining, and on-boarding training for fresh graduatesand for new employees, and training for the board ofdirections, supervisory and senior management reached100%. The training covered a wide range of topics suchas professional technology, product knowledge, qualityawareness, industry regulations, production safety, legalawareness, cybersecurity, technical process and man-agement standards. Through such training, we helpedemployees quickly apply what they learned in practices.During the Reporting Period, iRay Haining completed itsannual training plan with a total of 52 training items. Inaddition, during the Reporting Period, we assisted 12employees in obtaining national skill certificates relatedto their occupations, which further facilitated theircareer advancement.
Employee Training
iRay Technology ESG Report 20235152
累计组织培训???场
内部培训
???场
外部培训??场
Internal TrainingProductsTypes
Content
Forms
OnboardingtrainingLaws andregulations
Productknowledge
Training for theboard of directions
supervisory andsenior management
Continuousbusiness trainingGeneral skills
Qualitymanagement
ManagementcapacityQuality regulationsOther categoriesSpecialitiesTutorials, seminars, classroom learning, online learning
External TrainingTraining System ofiRay Technology
Ensuring Health and SafetyThe Company takes the protection of employees’ physical and mental health as the foundation of business activities. We haveestablished a sound workplace safety management system to minimise occupational health risks with effective managementprocesses and mechanisms.
The Company strictly complies with the laws and regulations of the countries and regions where we operate, such as the WorkSafety Law of the People's Republic of China, and the Regulations of the People's Republic of China on Industrial Injury Insurance.We have set up a three-tier safety management framework which enables the company's management carry out direct super-vision of occupational health and safety and production security. Furthermore, the Company follows the safety policy of Safetyand Prevention First and Comprehensive Management and the basic principle of Production Safety is Everyones Responsibili-ty, and have formulated the Environment, Health and Safety (EHS) Management Manual, the Emergency Plan and the Organisa-tion Chart of Environment, Health and Safety. Under these systems, the Company carries out safety management such as train-ing and education, supervision and inspection, rectification of potential safety hazards and construction of safety infrastructurein a systematic and standardised manner. Our subsidiary, iRay Taicang, has built a dual prevention system - graded risk controland hazard detection and management, and passed the Level-2 certification of safety production standardisation. Besides, bythe end of the Reporting Period, iRay Haining had improved the safety production management system in accordance with theISO 45001 Occupational Health and Safety Management System, pending for the certification audit results.
Our subsidiaries set annual production safety targets based on the actual operation of the production sites. The production per-formance will be included in the performance assessment of departments and individuals, thus fully implementing the productionsafety responsibility system among all employees. At the beginning of each year, iRay Taicang and iRay Haining set EHS keyaction plans based on the Statement of Responsibility in EHS Management. The two subsidiaries set quantitative targets aboutsafety and occupational health, including the timely hazard rectification rate, the achievement rate of special inspection plan, theachievement rate of training plan, the permit rate of special equipment licence, the rate of employment with special operationcertificate, the rate of fire protection maintenance and detection, the safety rate of hazardous factors in workplace, the spotinspection rate of occupational health protection facilities and the timely completion rate of physical examination. In addition,each subsidiary carries out monthly and annual meetings to review the implementation of the plans and ensure the implementa-tion of relevant tasks from top to bottom. During the Reporting Period, iRay Taicang and iRay Haining had fulfilled their EHS keyaction plans, with iRay Taicang achieving 100% of the quantitative indicators for both work safety and occupational health.
During the Reporting Period, 92.67% of the employees are trained, and the percentage of employees trained by gender and theaverage training hours per employee in Shanghai headquarters and its main subsidiaries, iRay Taicang and iRay Haining, are asfollows:
Note: The average training hours in 2023 decreased from 2022 due to adjustments made to the operating and training model.
5354
Percentage of trained employees
92.05%
93.03%
Average training hours of employees
ManWoman
ManWoman10.1 hours
9.4 hours
New employee training camp 2023
Integrated capacity trainingSystematic training
Work Safety Management System
The three-tier safety management framework of iRay Technology is as follows:
Abide by national and governmental laws and regulations on workplace safetyImplement the planning and requirements of regulators on workplace safetyMake decisions and resolutions on safety based on iRays production and operationMonitor,inspect, coordinate, communicate on and guide the work relating to pro-duction safetyInspect and assess the progress and effects of the safety work assigned by theSafety CommitteeCheck the time line of the assignments from the Safety Committee and ensurecompletion in timeAbide by relevant laws and regulationsPractice the workplace safety principles established by the Group and imple-ment the assignments from the Groups Safety CommitteeResponsible for education, supervision and inspection of workplace safety, rectifi-cation of hazards, signing of the Workplace Safety Responsibility Statement,information feedback and infrastructure safety
Safety committee of the GroupTop leadership for workplacesafety managementOffice of Safety Committee of
the Group
Executive body
Local Offices of the Safety
Committee
iRay Technology ESG Report 2023
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Case
Case
iRay Taicang improved training methods and enriched training themesIn 2023, iRay Taicang improved the training materials and assessment methods at workshop level and team level on thebasis of safety training at factory level, and effectively enhanced the understanding of trainees through case studies andinteractive discussions. At the same time, the subsidiary added topics such as the emergency use of fire-fighting facilities,personnel first aid Cardiopulmonary resuscitation (CPR), automated external defibrillator (AED), emergency response team(ERT) and emergency response control (ERC) mechanism to diversify the training themes and promote the safety awarenessof employees. During the Reporting Period, iRay Taicang conducted a total of 77 training sessions, covering 668 employees.
iRay Haining carried out personnel first aid training
In March 2023, iRay Hainingengaged 12 employees to par-ticipate in Red Cross first aidtraining and CPR/AED training,with all participants certified. InNovember 2023, iRay Hainingarranged about 80 employeesto participate in first aid trainingorganised by the Red Cross inHaining City. During the training,
iRay Taicang passed the annual third-party testing for occupational hazards (including radiation)
In November 2023, iRay Taicang entrusted a third-party agency to detect occupational disease hazards and occupationalsanitation for the plant. The third-party agency comprehensively tested the air quality, physical and chemical hazardousfactors in workplace according to the Occupational Exposure Limits for Hazardous Agents in the Workplace (GBZ/T 2.2-2007& GBZ/T2.1-2019). The agency also tested the X-ray and -ray radiation dose rate according to the Radiological ProtectionStandard for Low-energy Radiation Generating Devices (DB 32/T4186-2021). The test results met relevant national require-ments, indicating that iRay Taicang’s occupational hazards had been strictly controlled within a reasonable range.
We attach great importance to the improvement of employees’ safety awareness, safety management skills, risk recognitionability and emergency response ability. Therefore, we have formulated the Management System for Education and Training onEHS and set up a three-level safety education system for new employees. This system ensures that new employees are trainedand assessed at company level, department level or workshop level, and team level before working. We also provide targetedsafety education to employees when they change job categories, return to work, or before new technologies, processes, equip-ment and materials are put into use. In addition, we continue to promote the safety awareness among all employees. We carryout production safety training for on-the-job employees through multiple levels (such as among factory level, workshop level, andteam level), all channels (such as in the form of training, lectures, and meetings) and different feedback (such as through system,practice and tests) so as to comprehensively improve employees’ ability to recognise and respond to safety risks.
iRay Technology continues to make products suitable for lower-dose radiation, but how to avoid potential injury caused by radi-ation to employees during operation is still the top priority for us to protect employees health. Our production bases haveestablished the Management Rules and Regulations on the Safety and Protection of Radiation and the Management Ledger forWorkers Exposed to Radiation, which require strict implementation of the procedures of occupational health monitoring andarchival records for personnel. We require that radiation-related operators must receive safety training on radiation and obtaincertificates before taking up the post and familiarise themselves with the on-site radiation protection facilities and on-siteequipment and facility management. They also need to master the standard on-site safety operation requirements, radiationprotection requirements, etc., reducing the occupational health risk of employees at the source.In addition, to reduce the potential risks caused by chemicals to employees, the Company has prepared the Management Regu-lations on Chemicals and other documents to standardise the management processes of chemical procurement, storage, trans-portation, use, and disposal. Also, iRay Haining carried out the on-job training plan including Chemical Safety, Radiation Safety,Hazardous Substance Management and other topics to improve employees awareness of safety and self-protection. Duringthe Reporting Period, no work-related injuries or work-related fatalities happened, and the number of hours of work lost due towork-related injuries was zero.While protecting employees occupational health, we also care about their physical health. We invited external professionals toguide and train employees to master basic first-aid skills to cope with emergencies.
Work Safety Training
We strictly comply with the laws and regulations of the country and region where we operate, such as the Law of the People'sRepublic of China on the Prevention and Control of Occupational Diseases and the Decision of the State Council on FurtherStrengthening the Occupational Health and Safety. iRay Taicang and iRay Haining have respectively prepared the Manage-ment Regulations on Identification and Improvement of Ergonomics, the Occupational Hygiene Management System, the Man-agement Regulations on Protective Equipment for Labour, and other documents. They are committed to reducing occupationalhazards in the workplace to a greater extent and protecting employees occupational health.We pay close attention on the health of employees to prevent and control potential risks. We regularly arrange occupationalhealth check-ups for personnel exposed to occupational hazards and invite a qualified third party to test and evaluate hazardfactors in the workplace. Our subsidiaries iRay Haining, iRay Taicang and iRay Advanced Material etc., has developed apre-evaluation mechanism for occupational disease hazards, and built personal file for employees exposed to occupationaldisease hazards. At the same time, we attach importance to the installation of occupational disease protection facilities, such asthe physical guards, linkages and barriers for special machinery, which are designed to prevent employees from parts that maycause injury. In addition, we equip employees exposed to occupational disease hazards with personal protective equipment suchas professional safety goggles, protective face-shield, protective boots and protective garment to reduce employees’ exposureto potential hazards.
Protecting Employees’ Occupational Health
In addition to safeguarding the occupational health of our employees, we also care about the health and safety of those whoenter our production bases. We have developed Management Regulations on the Contractor's EHS and the Management Regu-lations for the Safety of Related Parties. The policies require the base managers to review qualifications, approve the factoryentry process and working, and offer EHS training for contractors. Also, the base managers should oversee and inspect theoperation process to further standardise the construction by external personnel in the production base and thus avoid acci-dents. During the Reporting Period, iRay Haining optimised the admittance qualification checks for external contractors andrequired the relevant personnel to sign the Construction Site Notification for External Personnel. This document enabled externalconstruction operators to further understand our safety management-related requirements, thus preventing safety risks.
Protecting Health and Safety of Relevant Parties
employees learned first aid methods including the use of CPR and AED, wound dressing and the Heimlich manoeuvre,with all of them certified.
Case
iRay Technology ESG Report 2023
Low Carbon andGreen Development
iRay Technology always adheres to the concept of greendevelopment and is committed to fulfilling its environmen-tal and social responsibilities. We continue to optimise ourenvironmental management system in our daily produc-tion and operations to reduce pollutant emissions, there-by promoting energy conservation and emission reduc-tion. In addition, we recycle resources and actively organ-ise environmental awareness campaigns, steadily movingtowards a healthier and greener path of development.
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SDGs
iRay Technology ESG Report 2023
Implementing Environmental ManagementStrengthening Emmision ManagementImproving Resource EfficiencyResponding to Climate ChangePractising Green Office
The Company actively fulfills its responsibilities for environmental governance and strictly complies with the laws and regulationsof the country or region where it operates, such as the Environmental Protection Law of the People’s Republic of China and theLaw of the People's Republic of China on Environmental Impact Assessment. Our subsidiaries, iRay Haining and iRay Taicang havedeveloped and issued internal regulations such as Management Rules on Waste Gas, Waste Water, and Industrial Residue andNoise and Management Rules on Resources and Energy Management, and established an environmental management frame-work involving senior managers and multiple departments. Both the management structure and the institutional system ensurethe sound operation of environmental management governance, thereby continuously improving the overall environmental per-formance of the Company. During the Reporting Period, we strengthened the environmental management system from multipleaspects, such as optimising the environmental management system and process, building environmental management team. Bydoing so, we are more capable of meeting the requirements of the ISO 14001 Environmental Management System Certification.In addition, we regularly monitor emissions and the environment to keep abreast of the environmental performance of our oper-ating sites. We also have an environmental emergency plan to respond to and handle those emergencies immediately. During theReporting Period, the Company reported no noncompliance with environmental laws and regulations.
Implementing Environmental Management
iRay Technology strictly complies with the laws and regulations of the country or region where it operates, such as the Atmo-spheric Pollution Prevention and Control Law of the People's Republic of China, the Water Pollution Prevention and Control Lawof the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Environmental Pol-lution by Solid Waste, etc. Since iRay Technology’s main business is the research and development, production, sales, and serviceof core components such as digital X-ray detectors, and it is not classified as a key pollutant enterprise regulated by the environ-mental protection department. To ensure compliant discharge and waste management, we have formulated internal manage-ment systems such as the Management Rules on Waste Gas, Wastewater, and Industrial Residue and Noise. According to thesesystems, we have established an emission management system. Relying on online monitoring equipment, we reduce pollutionthrough a variety of treatment facilities for wastewater, exhaust gas and wastes and management initiatives, minimising nega-tive impacts on the surrounding environment.
Strengthening Emmision Management
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Wastewater treatment stations were set up. Allwastewater is discharged to the sewage pipenetwork designated by the local environmentaldepartment after reaching the standard, and thenis treated by the municipal sewage treatmentplant.
Non-hazardous solid wastes in different catego-ries are collected, stored and treated: resourcewaste is collected and handed over to qualifiedrecycling manufacturers for recycling; solid wastegenerated in the production process is handedover to qualified units for treatment; domesticwaste is handled by the administrative depart-ment.
The hazardous waste is collected by classificationand disposed of by a qualified third-party manu-facturer.
Waste gas treatmentWastewater treatment
Non-hazardous solid waste treatment
During the Reporting Period, emission data of iRay Technology is as follows:
Emission in 2023148,305.4
166.2
18.4
Emission categoryWastewaterNon-hazardous solid wasteHazardous solid waste
Unit
TonTonTon
Emission in 2022
234,309.0
135.8
8.1
Note:
1. Due to the increase of pure water recycling and reuse in some processes of iRay Taicang ,and water-use system optimization of iRay Haining
in 2023, the data of wastewater discharge has decreased compared with 2022;
2. In accordance with hazardous solid waste transfer and disposal joint sheet, most of hazardous solid waste generated by iRay Taicang in 2023
was disposed of in January 2024, which has been included in the scope of 2023. As iRay Haining plant went into full operation in 2023, the amount ofnon-hazardous and hazardous solid waste increased as compared with those in 2022.
iRay Technology ESG Report 2023
Hazardous waste treatmentEmissionManagement
Measures
The waste gas is completely collected by theclosed collectors, plastic powder curing waste gastreatment equipment,sprayed by water, treatedby filter cotton,adsorbed by the activated carbonand after catalytic combustion,to realize 100%standarded discharge.
The Company continues to optimise its energy management system and promote energy saving and carbon reduction. We haveset up a cross-departmental cooperation structure for energy management and established annual energy targets based onhistorical electricity consumption data, production planning and other indicators. At the same time, we actively install energy-effi-cient equipment and monitor energy usage and follow up on abnormalities in our daily operations. We also conduct timely andregular maintenance of equipment to ensure efficient energy management. The Company also encourages employees to par-ticipate in energy conservation and emission reduction work and rewards the departments or employees with outperformance.We continue to develop and implement technically safe and reliable, economically feasible and reasonable energy-saving proj-ects, and improve energy utilization efficiency through measures such as eliminating high-energy-consuming equipment, usingenergy-saving equipment and optimizing energy-saving processes. During the Reporting Period, we had carried out a total of 28energy efficiency improvements. We also make full use of integrated digital system, collaborate with multi-party to effectivelyimprove production and operational efficiency. Take the deep excavation technology of iRay Haining as an example. iRay Hain-ing used a green digital software platform to improve the energy efficiency of the data centre through digital tools such asenergy efficiency comparison and artificial intelligence (AI) control. By centralising coating unloading with a Manufacturing Execu-tion System (MES) and Product Lifecycle Management (PLM) system, the subsidiary effectively reduced the working time of thelow humidity rotary dehumidifier handling unit for clean room in coating workshop. iRay Haining plans to save 2,000 kWh of elec-tricity per year and carry out a heat recovery project for ice machine cooling water at the same time, thereby achieving efficientreuse of heat energy and reducing the consumption of natural gas in boilers.
Improving Resource EfficiencyEnergy ManagementWe strictly comply with the Water Law of the People’s Republic of China and other laws and regulations of the countries orregions in which we operate. We strictly restrict the use of water resources at all stages in daily operations. We also advocatewater conservation in all aspects, and carry out recycling of water resources to improve the efficiency of water use.We have formulated the Management Rules on Resources and Energy Management and comprehensively strengthened themanagement of water resources use through operation management and daily publicity. In regular operation, the Companyinstalls water meters at each operation base to record and monitor water consumption, and regularly review water efficiency.We implement and strengthen daily inspections, maintenance, and management of water equipment, promptly address leaksand other issues, and strengthen pipeline maintenance to reduce unnecessary water loss. We also construct rainwater collectiondevices and other recycled water devices to improve the efficiency of water resource utilization. In terms of raising awareness,we widely post water-saving signs in production, living, and office areas. We strive to cultivate a culture among our employeesthat saves water and turns off taps when they are not in use. Additionally, we encourage our employees to actively propose wa-ter-saving measures, as well as advocate for and practise the secondary use and recycling of water resources.
Water Resources Management
During the Reporting Period, the energy consumption data of iRay Technology is as follows:
The water of iRay Technology is mainly sourced from municipal water. During the Reporting Period, thewater consumption data is as follows:
Note:
1. The energy consumption is calculated based on the consumed natural gas, gasoline and purchased electricity.
2. Due to some sections of iRay Haining plant were at full production and iRay Taicang plant went into full operation in 2023., the electricity and natural
gas increased.
3. Due to an increase in business activities and an increase in the frequency of use and mileage of official vehicles in 2023, gasoline consumption
increased.
Consumption in 2023
35,091.8404,302.0
4.0
4,421.8
35,091.8
39,513.6
0.21
Energy categoryElectricityNatural gasGasolineDirect energy consumptionIndirect energy consumptionTotal energy consumptionEnergy consumption intensity
Unit
MWhCubic meterTonMWhMWhMWhMWh/10,000 yuan of operating income
Water Data
Water consumptionWater consumption intensity
Unit
TonTon/10,000 yuan of operating income
Consumption in 2022
294,419.4
1.9
Consumption in 2023
272,731.8
1.5
????年使用量
Consumption in 2022
24,233.2309,419.0
3.2
3,385.824,233.2
27,619.0
0.18
Note: In 2023, iRay Taicang increased the amount of recycled water in some production process, so water consumption decreas-es compared to 2022.
iRay Technology ESG Report 2023
Note: During the Reporting Period, we handled over the wooden products and cardboard to suppliers to recycle, so both theemissions decreased compared with 2022; as the recycling utilization rate of plastic pallets increased, the plastic recycled alsodecreased compared with 2022. During the Reporting Period, iRay Taicang adopted metal pallets instead of wooden palletsand recycled metal waste such as metal pallets, so metal recycled increased in 2023.
Responding to Climate ChangeAs COP28 (the 28th session of the Conference of the Parties of the United Nations Framework Convention on Climate Change)opens a new chapter in the global climate response, contributing to mitigate climate change will gradually become the consensusof all industries. iRay Technology actively responds to the United Nation’s call and China’s dual carbon strategy, that is, toachieve carbon peaking by 2030 and carbon neutrality by 2060. We continue to pay attention to climate governance, andrespond to climate change by improving energy efficiency and reducing greenhouse gas emissions.
The Company strives to enhance its ability to respond to extreme weather risks caused by climate change. We have developeda Special Emergency Plan for Natural Disasters, established a graded response mechanism for various types of natural disasterssuch as floods, typhoons, lightning and other natural disasters, and set up an emergency rescue command team led by seniormanagement of the Company to further strengthen the monitoring, early warning and response work in the face of various typesof natural disasters. At the same time, we have established an Emergency Response Mechanism to further refine and implementspecific response plans for scenarios such as power outages and water supply interruptions.We make emergency drill plans every year and regularly carry out safety training against typhoons, high temperatures andother extreme weather for all employees to popularise and strengthen emergency knowledge. On this basis, we periodicallyconduct natural disaster emergency drills, and enhance employees practical ability to respond to emergency procedures andensure our efficiency and effectiveness in responding to extreme weather.
Note: GHG emissions of natural gas and gasoline are calculated in accordance with the Accounting Methods and Reporting Guidelines for GreenhouseGas Emissions of Enterprises in Other Industries issued by the National Development and Reform Commission; the GHG emissions generated byoutsourcing power in China shall be calculated according to the 2021 provinces electricity carbon dioxide emission factor issued by the Ministry of Ecol-ogy and Environment of the People’s Republic of China and the National Bureau of Statistics of the People’s Republic of China in 2024; At the sametime, we have also recalculated and presented the relevant data for 2022 in accordance with the updated emission factors in order to safeguard thecomparability of the data.
iRay Technology standardises the management of material use in the production process and considers the environmentalimpact of each production stage, aiming to maximise the utilization of metal materials and packages in the production process.We repurpose the cardboard boxes used for glass raw materials as internal intermediate product packaging. When packagingwaste is generated, we first inspect the condition of the boxes and reuse them as much as possible. For those that cannot bereused directly, we collect and sort them for recycling by qualified waste recycling companies.
Material Recycling
6364
CaseiRay Haining and iRay Haining carried out the recycling of cardboard and foam
CaseFlood and Typhoon Prevention Drill
On 11 August 2023, the Company organised an emergency drill for flood and typhoon prevention. The Company carriedout thorough drills, including material preparation at early stage, safety reminders in response, measures to deal withurban water logging, and post-disaster relief. These drills not only improved the Company’s ability to respond to suddennatural disasters, but also raised employees’ safety awareness and enhanced their emergency response skills. During thedrill, we also promptly improved potential issues identified to ensure emergency response capabilities before naturaldisasters.
During the Reporting Period, iRay Technology carried out the recycling and disposal of wooden products,cardboard, metal and plastic waste, and achieved specific results:
During the Reporting Period, the GHG emission data is as follows:
Emission category
Wooden products recycledCardboard recycledPlastic recycledMetal recycledTotal recovery and treatment
Unittontontontonton
Emissions in 2022 36.7 137.9 90.5/
265.1
Emissions in 2023
0.3
1.6
30.3
12.0
44.2
GHG emission category
Direct greenhouse gas emissionsIndirect greenhouse gas emissionsTotal greenhouse gas emissionsGreenhouse gas emission density
UnittCO
etCO
etCO
etCO
e/10,000 yuan of operating income
Consumption in 2022 678.814,758.9 15,437.7
0.10
Consumption in 2023
886.3
21,239.522,125.8
0.12
Filling flood-control sandbags, on-site personnel training, on-site emergency rescue operations
With the enhancement of the Companys awareness of environmental protection, our subsidiaries, iRay Haining and iRayTaicang, carried out packaging material recycling during the Reporting Period. They recycled packaging materials suchas cardboard, foam and other packaging materials through the internal flow of direct recycling to maximize the benefitsof resource utilization and to achieve a win-win situation in terms of economic benefits and environmental benefits. Duringthe Reporting Period, iRay Haining recycled a total of approximately 5,000 sets of foam from the high-pressure produc-tion and surface treatment process, resulting in a total cost saving of approximately RMB100,000. In addition, through theimplementation of relevant initiatives and publicity activities, the staffs awareness and enthusiasm for packaging materi-al recycling has been effectively enhanced, which also provides a boost to the companys green development.
iRay Technology ESG Report 2023
Practising Green OfficeiRay Technology practices and promotes the concept of green operation, incorporating specific environmental protection mea-sures into various aspects of the Companys daily operation, and encouraging every employee to participate in green officeactions. During the Reporting Period, we promoted environmental awareness and skill training of employees. We conductedinternal and external training to enable our employees to better understand the requirements of environmental protection-re-lated regulations and external standards, and master green environmental protection skills and methods. These trainings haveeffectively raised employees’ awareness of ecological issues and environmental protection, creating a favourable atmospherewithin the Company for all employees to participate in environmental protection.
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Green meeting
Saving electricity
Reducing paper consumption
Environmental protection education
Advocate online meeting to replace unnecessary travel and reduce the environmental footprint brought by travel.
Promote paperless office, reduce paper consumption through electronic workflow, and promote double-sided printing.
Actively plan environmental protection education, popularise environmental protection and improve the
environmental awareness of all employees.
Encourage employees to turn off the lights, air conditioners and other electronic equipment when leaving the office
and assign personnel to patrol the area.Set the timing for turning on and off street lights according to weather conditions and automatically switch off
landscape lights every day.Lock the temperature setting function through the air conditioning system to keep it in a reasonable range to reduce
energy consumption.
iRay Technology ESG Report 2023
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iRay Technology ESG Report 2023
Responsible Pro-curement and Re-silient Management
iRay Technology has sharpened its supply chain manage-ment capability and is committed to building long-term,solid partnerships with suppliers. While ensuring that oursuppliers meet high standards of quality and delivery, wealways aim to build a sustainable supply chain in the longterm. Sticking to responsible procurement, we compre-hensively convey our environmental and social require-ments to our suppliers, to jointly create a win-win sustain-able supply chain ecosystem.
SDGs
Improving Supply Chain ManagementFostering a Responsible Supply Chain
iRay Technology lays down a range of internal regulations, such as the Management Rules on Supplier Selection and Assessmentand the Management Rules on Supplier Audit, therefore specifying a range of supplier management regulations on certification,standards and processes to classify and manage suppliers throughout the lifecycle. These regulations effectively manage allaspects of the supply process such as supplier development and audit and supplier performance assessment. During the Report-ing Period, we introduced the Supplier Relationship Management (SRM) system. Through the system, we realised the digital man-agement throughout the supply chain for key aspects such as quotation, ordering and delivery, effectively enhancing the effi-ciency of supply chain management.
In the process of supplier development and audit, we review the qualifications of potential suppliers according to the PotentialSupplier Profile and the Supplier Assessment Scorecard prepared by us. We also select suppliers according to our requirementsin terms of product quality and hazardous substances management, giving priority to those that have passed international stan-dard system certification.
Improving Supply Chain Management
Supplier Development and Audit
In the daily management after development and admittance, the Company carries out monthly performance monitoring andannual assessment of qualified suppliers to ensure that they always meet the management and product requirements. We con-duct graded management linked to business share, and conduct regular performance evaluations from multiple dimensions suchas delivery timeliness, product quality, etc. Based on the evaluation results, suppliers are classified into four grades: A/B/C/D. Weincentivise suppliers who actively fulfil our management requirements. For suppliers who fail the performance evaluation, we pro-vide guidance through interviews, on-site evaluations and other methods. We also require and assist suppliers to prepareimprovement plans to meet our requirements and grow with us. During the Reporting Period, we conducted annual performanceevaluation of all qualified suppliers; and training 100% of suppliers who failed the evaluation.
Supplier Performance Assessment
To promote the efficient and high-quality operation of the total quality management system of products, we actively carry outtraining and exchanges with suppliers. In doing so, we convey the quality requirements and problems encountered in cooperationto our partners, and promote the quality of suppliers’ materials and services, laying a solid foundation for the long-term sustain-able and high-quality development of the Company.During the Reporting Period, we trained some of our key suppliers and communicated with them on a monthly basis to ensure thequality of product delivery. In addition, we analyse and summarise the production process of some new raw material suppliers,and carry out relevant quality training for them. This enables the suppliers to further understand the Company’s acceptancestandards, empowering their growth with us.
Supplier Empowerment and Training
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By the end of the Reporting Period, the proportion of suppliers selected by iRay Technology who havepassed international standard system certification was as follows:
Certification
ISO 9001 Quality Management SystemISO 45001 Occupational Health and Safety Management SystemISO 14001 Environmental Management SystemISO 13485 Medical Devices Quality Management System
Approximate proportion
80%30%40%25%
The primary process of supplier scouting and audit
Propose demands
for supplierdevelopment
Level ALevel BLevel CLevel D
Preferred in consequent
cooperation
Maintain currentmanagement mode
Formulate improvementplans, urge their rectifica-tion, and lower the share ofprocurement
Gradually terminate
cooperation
Questionnair e
survey onpotential suppliers
On-site inspectionof suppliers
Finalise the list ofqualified suppliersAssess reviewresults
iRay Technology ESG Report 2023
iRay Technology attaches great importance to the sustainable development of suppliers and actively works with partners in thesupply chain to create a responsible value chain. We continuously strengthen communication with suppliers in supplier assess-ments and daily activities, emphasising the Company’s requirements for business ethics, environmental protection and socialresponsibility.We require all new suppliers to sign a series of documents such as the Statement on Conflict Minerals, RoHS Compliance State-ment, REACH Compliance Statement, China Restriction VOC Survey and Statement, Quality Assurance Agreement and the Integ-rity Agreement, to ensure that all suppliers meet our requirements for a sustainable supply chain. During the Reporting Period,under the newly formulated iRay Technology Integrity Guideline, suppliers were required to comply with a number of require-ments about EHS, compliant employment, responsible mineral procurement, and conflict of interest. We also carry out theme pro-motion for all new suppliers during the access phase to ensure they comply with relevant laws and regulations and assume theirown environmental and social responsibilities. In addition, we add audit requirements for suppliers’ environmental and socialresponsibility performance in the Supplier Assessment Scorecard to screen and evaluate suppliers in a stricter manner. We alsoactively optimise our supply chain structure and management to reduce environmental and social risks in our supply chain.For materials such as packaging, labels and mechanical components, we give priority to local suppliers. For example, we workwith local suppliers in Suzhou and Jiaxing to improve the efficiency and synergy of our supply chain network. As a result, we effec-tively reduce logistics and inventory costs while significantly reducing carbon emissions in the logistics process and minimisingexcess inventory and material obsolescence. During the Reporting Period, we cooperated with suppliers of CNC (ComputerNumerical Control) materials to promote the recycling of cardboard boxes and packaging liners of CNC materials by setting uptemporary storage rooms inside the warehouses, etc., and the recycling rate reached 70%.
Fostering a Responsible Supply Chain
CaseCollaboration with Suppers for the Recycling of ESD Boxes
We actively cooperated with upstream suppliers and downstream clients in the recycling of packaging materials in orderto minimise the use of resources and reduce the environmental footprint of the supply chain. We had established along-term electrostatic discharge (ESD) boxes reuse mechanism. After the suppliers use the ESD boxes to deliver materi-als, we collect and store them in a designated location in our warehouse. We then periodically return the boxes to the sup-pliers for reuse, reducing packaging waste while lowering their packaging costs. Our ESD box recycling rate exceeds 95%.
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As of December 31, 2022, 100% of suppliers signed the Statement on Conflict Minerals.
As of December 31, 2022, 100% of suppliers signed the Integrity Agreement.
iRay Technology ESG Report 2023
Caring for Societyand ShoulderingResponsibility
Relying on its global layout, iRay Technology promotes theinclusive medical care. We provide efficient, safe and afford-able high-end medical equipment and service to developingcountries, delivering warmth and care to society. Meanwhile, weare well aware of the importance of X-ray imaging andhigh-end manufacturing technicians to medical quality andindustrial development. The Company therefore leverages itsresources to train high-quality practical talents, contributing tonational medical imaging and high-end manufacturing.
SDGs
iRay Technology ESG Report 2023
CaseCase
Case
iRay Technology delivered products to 300+ hospitals in India for inclusive medical care
The company joins hands with universities to verify innovative technologies and deepen thecooperation of industry-university-research.With the deepening of industry-university-research cooperation, we have carried out mutual cooperation with HuazhongUniversity of Science and Technology, Shanghai University and other universities. Based on scientific and technologicalinnovation projects, the company provides a platform for the scientific research and innovation ideas verification forteachers and students. And we help scientific research and technological innovation implement in line with industry. At thesame time, the company provides training opportunities for students majoring in medical image, helping the cultivation ofindustry talents, and cultivates high-quality skilled talents with profound theoretical knowledge and strong practical ability.
Our Mars 1417V product is a 14×17-inch wireless static flat panel detector that utilizes AED and other technologies to pro-vide clear images, stable and reliable wireless performance, and long battery life. With its many advantages, our Mars1417V and other products to 300+ hospitals in India in 2023, which will greatly contribute to the construction of the localbasic healthcare system in India, and enhance the well-being of human health with technological innovation.
CaseThe company serves hospitals and jointly cultivates clinical medical engineering talentsWe provide innovative medical imaging products to six tertiary hospitals in Shanghai (Shanghai Sixth Peoples Hospital,Xinhua Hospital affiliated to Shanghai Jiao Tong University School of Medicine, Huashan Hospital affiliated to Fudan Uni-versity, and Tongji Hospital of Tongji University, etc. We assist in comparative research on the application of domestic andimported devices, helping product innovation, and further meet the actual needs of medical imaging. At the same time,we assist the hospital in cultivating medical engineering talents with clinical knowledge and experience.
iRay Taicang set a practical training classroom, with on-site practice by internal experts to nur-ture practical talentsIn May 2023, iRay’s Training Centre in Taicang welcomed 44 apprentices from the Jiangsu Taicang Secondary VocationSchool to start a new round of joint training programmes. Equipped with an independent R&D centre, a non-mass pro-duction pilot line, a simulation production line, and all the high-end professional instruments and tools involved in produc-tion, the iRay’s Training Centre creates an environment that is realistic and close to the actual production andestablishes a comprehensive practical training environment for the cultivation of a new generation of innovative,advanced, and leading talents.In addition, in order to improve the quality of the training, iRay Taicang sent engineers with rich production experience tolead the students to master the practical ability through knowledge training, skill explanation and on-site practice, etc., soas to cultivate new talents for the development of the industry.
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iRay Technology ESG Report 2023
Thank you for reading the Environmental, Social and Governance Report of iRay Technology 2022. We sincerely inviteyou to give your comments and suggestions on this report to help us better communicate valuable information to stake-holders and improve our ESG management.You can fill in the feedback form and give it back to us via:
Email: ir@iraygroup.comAddress: Building 45, No. 1000, Jinhai Road, Pudong New Area, ShanghaiPostcode: 201206
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iRay Technology ESG Report 2023
iRay Technology Company Limited