imaging the future
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Stock code: ??????.SH
Environmental, Socialand Governance Report
Improving Lives with Innovative Imaging Technologies
iRay Technology Company Limited
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Serving Customers withTechnological Ingenuity
Quality Management SystemInnovating Leading-edge ProductsDigital Production
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Clean Production andGreen OperationStrengthening Environmental ManagementComplying with Emission StandardsOptimising Resource ManagementResponding to Climate ChangePromoting Green O?ce
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Sustainable Supply ChainSupply Chain ManagementGreen Supply Chain
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Caring for Those in Need andPaying Back to the SocietyFeedback From Readers
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Working Together to Createand Share
Protecting Employees' RightsEmployee Bene?t and CareEmployee Development and TrainingOccupational Health and Safety
Table of Content
iRay Technology ESG Report 20220102
About the ReportMessage from the ChairmanAbout usCorporate GovernanceESG GovernanceESG Topics in ????
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This report is the inaugural environmental, social, and governance (ESG) report issued by iRay Technology Company Limited to allstakeholders. This report aims to give an objective picture of the Company's initiatives and performances in environmental, socialand governance (ESG) and other sustainability indicators to shareholders and investors, customers, employees, governmentdepartments and regulators, suppliers and partners, the public, and other stakeholders.
Reporting StandardsIn this report, "iRay Technology Company Limited" is referred to as "iRay Technology", "Company" or "We". "iRay Technology TaicangLimited " a wholly-owned subsidiary held by iRay Technology Company Limited, is referred to as "iRay Taicang" for short, and "iRayImaging Technology (Haining) Limited " is referred to as "iRay Haining" for short and "iRay Precision Manufacturing Haining Limited" isreferred to as "iRay Precision".All monetary amounts in this report are stated in yuan.
Report Access
This report can be viewed or downloaded online in both simpli?ed Chinese and English at the Shanghai Stock Exchange website（www.sse.com.cn）and the Comapany's o?cial website (www.iraygroup.com).
Contact
If you have any questions or suggestions about this report, please feel free to contact us via
E-mail: ir@iraygroup.com
Tel: +?? ??-????????-????
Fax: ??????????-?????
Address: Building ??, No. ???? Jinhai Road, Pudong New Area, Shanghai, China ??????
Time Frame
This report involves the information and data from January ?, ????, to December ??, ???? (hereinafter "the Reporting Period"), withsome of them traced back to and before ????.
Reporting GuidelineThis report is prepared with reference to the requirements and guidance for ESG information disclosure by the Guidelines No.1 on theSelf-Regulation for Listed Companies on SSE STAR Market and the Guidelines No.2 on the Self-Regulation for Listed Companies onSSE 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 ?nancial report.
About the Report
iRay Technology ESG Report 20220304
iRay Technology ESG Report 20220506
Quality-assured and innovation-drivenAs one of the few digital X-ray detector manufacturers in the world who master all the core technologies in key areas, iRayTechnology makes solemn commitment on high-quality products and continuous innovation to customers and end users. Weestablish a full-process product quality management, and use digital technology to enhance the quality of production and product.Since inception, there is no product recall caused by unquali?ed products.iRay Technology set R&D management and innovation incentive mechanism to underpin and drive technological breakthroughsand product innovation, improves product performance and its achievement in medical and industrial sectors, and boosts medicaldiagnosis and treatment, and accurate industrial detection and safety inspection. As of December ??, ????, the Company has ???intellectual property registrations or licenses (subject to the certi?cate date), including ??? invention patents. In addition, we activelypractice the philosophy of "green X-ray" and are committed to providing products with lower clinical dose, better image and moree?ciency to reduce radiation to patients, users and the environment.People-oriented, co-creation and sharingiRay Technology is well aware of how important X-ray imaging and high-end manufacturing technology talent development is to theinnovation and development of the industry and companies. The Company regards employees as the core driving force oftechnological innovation, establishes a multi-dimensional salary management system, and provides su?cient and equal trainingopportunities to promote employees' personal development and self-realization. We attach great importance to the health andsafety of employees, maximising related-risk prevention and control, and protect the health of employees. In addition, iRayTechnology double e?orts in training high-quality technicians and researchers, and contributes to the national medical imaging andhigh-end equipment industry.Green development with the industryiRay Technology adheres to green development and pursues the growth of environmental and economic bene?ts. We continue todeepen environmental management in regular production and operation while developing and implementing energy-savingprojects that are technically safe and reliable, economically reasonable and feasible. Furthermore, the Company improves energye?ciency and reduces greenhouse gas emissions by eliminating energy-consuming equipment, using energy-e?cient equipmentand optimizing energy-saving processes. Besides, we are committed to building a green ecological chain and strengtheningenvironmental requirements during cooperation with suppliers. We actively communicate our green concept, and explore and carryout recycling projects with upstream and downstream partners to lead the sustainable development of the ecological chain.Among hundreds of competing boats, and the most hard-working striver will take the lead. Towards ????, iRay will continue to makegreat e?orts to improve our ESG performance and management, working with all stakeholders to drive the industry and socialdevelopment and creating a sustainable future with responsible operation and practice!
Message from the Chairman
In 2022, as the economy and societycontinue to be a?ected by uncertainties,we faced various challenges. iRayTechnology has been stuck to the vision of" iRay X-ray Technology Everywhere", andcommitted to timely delivery as promisedto exhibit our resilience. Meanwhile, weare deeply aware of the importance ofpracticing the concept of sustainability forour continuous development, and weshare our ESG performance and ourcon?dence in contributing to thesustainable society with all stakeholdersthrough the Environmental, Social andGovernance (ESG) report for the ?rst time.
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iRay Technology Company Limited
ChairmanTieer Gu
About us
Founded in ????, 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. The Company's productshave been extended to various subdivided ?elds of the downstream medical and industrial ?elds. iRay Technology upholds the visionof "iRay X-ray Technology Everywhere", helps world-renowned customers improve medical diagnosis and treatment, increases theaccuracy of industrial testing or security inspection, improves the production e?ciency of customers and reduces production costs.With a focus on the core values of "Innovation, Excellence, Collaboration and Win-Win", the Company uses technological innovationand excellent products and services to accelerate the strategic upgrading of the industry value chain, so as to create di?erentiatedvalue for customers in more subdivided ?elds and provide mutual development opportunities for suppliers.
Key components of digital X-ray equipment include the high-voltage generators, integrated X-ray sources, X-ray tubes (or "tubes") anddetector. The high-voltage generator supplies the cathode and anode of the tube with direct current high-voltage to generate X-ray. Afterpassing through the human body or the detected object, the attenuated X-ray is received and converted into digital signal by the detectorwhich then outputs the image. With its outstanding R&D and innovation capabilities, the Company has become one of the few digital X-raydetector manufacturers in the world that masters all the main core technologies, including sensor design and process technology, CTdetector technology, scintillation crystal material and packaging technology, ROIC and low-noise electronic technology, X-ray intelligentdetection and acquisition technology, and detector physics research and medical image algorithm.In addition, in the ?eld of high-voltagegenerators and X-ray source, the Company has developed core technologies like high-voltage insulation technology, high-voltage inverterpower topology technology, and special auxiliary power technology.The Company's key products are mainly digital X-ray detectors, and have covered various subdivisions of downstream medical and indus-trial ?elds. in terms of the medical ?eld, its products are mainly used for medical diagnosis and treatment and installed on digital radiogra-phy (DR) equipment, full ?eld digital mammography (FFDM), radiotherapy equipment, dental cone-beam computed tomography system(CBCT), C-arm system and other medical equipment; all ranges of products can be mass produced. In the industrial ?eld, the massproduced products are basically applied to nondestructive testing, power battery inspection, semiconductor back-end package inspection,security checks and other scenarios. Meanwhile, according to the di?erent working modes of digital X-ray detectors, the Company has twocategories of products: static and dynamic digital X-ray detectors. In key dynamic areas, the Company has overtaken foreign enterprises bydeveloping core technologies such as complementary metal oxide semiconductor (CMOS), indium gallium zinc oxide (IGZO) to promotedomestic substitution. As of December ??, ????, products produced by the Company have been sold to more than80 countries andregions, with a total global shipment of over 200,000 X-ray detectors (excluding linear detector arrays and other key components).
Vision
MissionValueInnovation, Excellence,Collaboration andWin-Win
iRay X-ray Technology Everywhere
Improving Lives with Innovative
Imaging Technologies
Corporate
culture
iRay Technology ESG Report 20220708
Field
Medical
General TethedSeries
Dynamic/ StaticGeneral WirelessSeries
StaticVeterinary Series
Dynamic/
Static
Used in ?xed DR to support digital X-ray diagnosis of human chest,abdomen, bone, soft tissue and gastrointestinal tractUsed in mobile DR and ?xed DR to support digital X-ray diagnosis of humanchest, abdomen, bone and soft tissueUsed in X-ray imaging equipment for the veterinary purpose to support thedigital X-ray photography and diagnosis needs of all parts in small and largeanimals
Industrial
Detector Range / TypeApplication
C-arm SeriesDynamic
Used for C-arm system/digital subtraction angiography (DSA) to supportorthopedic surgery and cardiography, neuroangiography and otherinterventionsMammographySeries
Dynamic
/Static
Used in FFDM to support full ?eld digital mammography and digitaltomography ?D imaging, and to screen and diagnose human breast cancerRadiotherapySeries
Dynamic
Used in radiotherapy equipment and can be integrated with the linearaccelerator in X-ray medicine, radiosurgery applications and proton therapysystemDental IntraoralSeries
Static
Used in dental intraoral X-ray system to support the clinical diagnosis ofroot canalDental CBCT Series
Dynamic
/Static
Dynamic
/Static
Used in dental CBCT to support clinical imaging applications such as dentaldiagnosis, orthodontics, implant-related cephalometric radiography andpanoramic radiographyBattery InspectionSeries
Dynamic
Used in ?D and ?D industrial systems for Electric Vehicle (EV) battery /lithium battery inspectionIntegrated circuitand electronicmanufacturinginspection Series
Dynamic
Used for NDT inspection of integrated circuit and electronic manufacturinginvolving the manufacturing/assembly of electronic components, printedcircuit board (PCB) printing, semiconductor packaging, etc.Casting InspectionSeries
Used for NDT inspection of casting inspection such as metal castings,structural parts and pressure vessels, etc
StaticPipeline InspectionSeries
Used in portable industrial nondestructive testing (NDT) systems forpipeline welding quality inspection such as identifying weld bead, surfacepores and cracks, etc
Dynamic
/ StaticSecurity InspectionSeries
Used for di?erent aisle size security machines or mobile security inspectiondevices for luggage, parcel inspection and public security inspection
At present, the types of detectors that the Company has mass production capacity are as follows:
DR system with ?at panel detector
In addition, the Company is actively exploring upstream components and raw materials such as antiscatter grids (ASG), scintillationmaterials, and photodiodes (PD). During the reporting period, the company completed the research and development of some ?Dcollimators for medical CT and imported them to domestic customers, entered the stage of small-scale mass production, and activelydeveloped ?D collimators for security CT simultaneously. Self-development of scintillation crystal caesium iodide, cadmium tungstatehave been completed and mass- produced for sale. Self-development of GOS ceramics' application in security check has beencompleted and entered the mass production period. The research of GOS scintillation material for medical CT detectors has made abreakthrough with the key indicators reaching or close to the international leading level, and is in the stage of sample evaluation andpilot testing. The company has also made good progress in the research and development of the carbon plate composite materialforming process, which can further optimise the image performance, and has begun to be applied in some detector products of thecompany.In order to further improve the product and business layout and enhance the Company's competitiveness, building on the solidfoundation of our digital X-ray detector products, the Company has strategically tapped into the ?eld of other key components of X-rayequipment and devices, such as high-voltage generator, integrated X-ray source and tube, as well as comprehensive X-ray solutionsand has preliminarily completed the layout based on the above business areas. The high-voltage generator, integrated X-ray sourceand tube are X-ray generating devices and are the key components of digital radiography equipment together with the detector. Theirquality is directly related to the safety, performance and overall life of X-ray photography equipment, and they have a wide range ofuses in medical diagnosis and treatment, industrial non-destructive testing (NDT), safety checks and other ?elds, and have strongstrategic synergy with digital X-ray detectors. At present, the Company has carried out product planning in the ?elds of radiographyequipment for veterinary use, dental CBCT, C-arm, CT, and industrial electronic testing, and achieved certain outcomes. We will furtherextend to more subdivided applications such as medical mobile and ?xed DR, industrial and security inspection.
Appearance of (wireless) ?at panel detectorPro?le of (wireless) ?at panel detector
iRay Technology ESG Report 20220910
High-voltage generatorIntegrated X-ray source Portable Intra-oral X-ray source
History
From static to dynamic, from the medical ?eld to the industrial ?eld, after ?? years of development, the Company has graduallytransformed from a static medical detector enterprise to a supplier of X-ray key components and comprehensive X-ray solutions, andhas become a well-known enterprise specializing in key components, such as detectors, high-voltage generator, integrated X-raysources, and ASG, etc., and comprehensive X-ray solutions.
iRay Technology ESG Report 20221112
Stage IEstablishment and R&D
Stage IIOpen up the market
Stage IIIForm scale
Stage IVPartial leading
·iRay Technology was
founded·Complete the testing anddelivered the ?rst productsto break foreign monopolies
on the domestic market
·Cesium iodide project was launched and
put into operation in the same year
·Strategic cooperation with Konica and Wandong Medical
·Launch of the ?rst wireless product·U.S. leader in the economical DR detector industry
·Reached strategic cooperationwith Shanghai United Imaging·Shipped nearly ?,??? units
·Launch of the ?rst IGZO ?at
panel detector·Successful research anddevelopment of dental products
·Successfully listed on the
Shanghai Stock Exchange
STAR Market·Mass produced dental
detectors and LDA
·Issuance of the ?rst convertible
corporate bond·Complete the layout of keycomponents and integratedsolutions for X-rays
·Strategic cooperation with Siemens and Philips
·Shipped over ?,??? units
·Launch of the ?rst dynamic product·No. ? in domestic ?at panel detector shipments
·Started to lay out new ?elds such asmedical dynamics, industry, pets,and security check·Taicang factory put into operation·Nearly ?,??? units shipped
·Flexible X-ray detector manufacturing capacity·Started operation of the Korean plant·Shipped more than ??,??? units
·Mass produced detactors for newenergy battery inspection
201320152012201420162018202020222011202120192017
Honors and AwardsThe Company has been working on detectors for more than ten years. The Company has scooped high level honors and awards in theindustry with excellent R&D capabilities and manufacturing capabilities. In recent years, as a supplier of key components, such asdetectors, high-voltage generators, integrated X-ray sources, ASG, etc., and comprehensive awards with its strong comprehensivestrength, continuous innovation of advanced products and high-quality patent accumulation.
In ????, the Company won the national SingleManufacturing Award. With strict selection criteriaand processes, the award is the commanding height ofChina's manufacturing industry segments, and theembodiment of the core competitiveness of China'smanufacturing.
DescriptionImage of Awards
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In ????, iRay Technology's "R&D of key technologies of medical ?atpanel detector for rapid and safe diagnosis of pneumonia with DRsystem" project won the First prize of "Shanghai Science andTechnology Award" issued by the Shanghai Municipal People'sGovernment. The award aims to reward those who make the originalinnovation in scienti?c discoveries and technological inventions, aswell as major technological results which drive changes in the wayeconomy grows, develop strategic industries, promote urban safetyand a healthy ecosystem and improve innovation and economicdevelopment of districts and counties.
In ????, the Ministry of Industry and Information Technology of thePeople's Republic of China presented the national award "LittleGiant" to iRay. "Little giant" refers to the pioneering small andmedium-sized enterprises that focus on a market niche and masterkey technologies with a strong innovation capacity and big marketshare. The recognition positively proves the Company's pro?tability,market share, and innovation.
iRay Technology ESG Report 2022
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Honors: won the nationalSingle Manufacturing Award
In October ????, the Ministry ofIndustry and InformationTechnology and the ChinaFederation of IndustrialEconomics announced the listof the seventh batch of nationalmanufacturing champions. TheCompany's unparalleled ?atpanel detector secured theCompany the national SingleManufacturing Award. Beinginnovation-driven over theyears, the Company continuedto heavily invest in R&D andbuilt its competitive advantagewith core technologicalcapabilities.
Memorabilia of iRay Technology in ????
Resilience: overcame di?culties amid the staticmanagement and operated stably
When the static management occurred in Jiangsu, Zhejiangand Shanghai suddenly in March ????, the Company startedthe emergency response plan as soon as possible. It set up apandemic control team to implement closed loopmanagement in factories in Taichang and Haining, whichhelped deliver products timely without compromisingemployees’ safety under the humanised and scienti?c mode.
Technological exploration: the curved detectorappeared in ECR
On July ??, ????, the Company was invited to the EuropeanCongress of Radiology (ECR). At the exhibition, the curveddetector Mercu ????X and large ?at panel detector (??x??inch) produced by iRay Technology attracted manyprofessionals due to outstanding product performance.The industry-leading medical imaging technology madethe Company stand out and displayed the Chinese brandto the world.
Product innovation: launched new microseconddynamic industrial detectors - TDI detectorIn October ????, the Company's ?rst time delay integration(TDI) detector appeared at the ultra-high speed imaging,and accurate identi?cation of defects when the target ismoving at a high speed or giving out weak signals, whichthus expands the industrial use cases, especially expectedto excel in new energy battery.
Hit full speed: better performance to betterserve global customersThe production base of iRay Haining has beenfully decorated by the end of the reportingperiod. The main manufacturing facilities weremoved in and related commissioning wascompleted; a joint test run was started in theproduction line; the capacity was rising orderly.The Company's ???-micron high resolutiondetector and ???? large-view detector were massproduced and delivered. All those productscontinuously optimised the Company's productstructure, satis?ed the needs of future expansion,and sustained long-term development.
Fundraising: successfully o?ering ofconvertible bondsOn November ??, ????, the Company publiclyo?ered convertible bonds (iRay ConvertibleBonds ??????). It raised more than RMB ?.?billion, providing building blocks for theCompany.
Lead the upgrade: attended the RadiologicalSociety of North America (RSNA) exhibitionFrom November ?? to December ?, ????, the Companyset up a booth themed "Intelligent Inside" to fullydemonstrate its strategic commitment tointelligence-centric medical imaging advancement. TheCompany's over ?? detectors and high-voltage genera-tors and integrated X-ray source products were alldisplayed to signal its willpower and strength to expandnew technologies and apply the core image componentsto all ?elds.
Breakthroughs in patents:
broaden the new IP layoutDuring the reporting period, theCompany obtained ?? intellectualproperty rights and expanded itsintellectual property layoutoverseas. Among them, both theintegrated intelligent AEC module(iAEC technology) and the automaticexposure control method andsystem in X-ray were granted theExcellent Patent in Pudong New Areaof Shanghai in ????. In addition, wehad our layout in intellectualproperty rights of key componentssuch as high-voltage generators,integrated X-ray sources,, and ASG.We acquired ?? related intellectualproperty rights by the end of thereporting period.
Leapfrog progress: built the new headquarters and R&DcenterOn September ??, ????, the Company's headquarters andR&D center (key technology R&D and comprehensiveinnovation base for digital X-ray detector) project o?ciallystarted its groundbreaking in Zhangjiang Science City. Theproject is expected to cost more than RMB ?.? billion with a?oor area of more than ??,??? square meters. After itscompletion, it will greatly optimise the Company's facilities,R&D environment, and working environment, and thescienti?c and technological results will be commercialisedaccelerated. The Company thus is expected to be the world'sleading supplier of integrated detector solutions.
Emerging strength: incorporated inSTAR 50 indexOn September ?, ????, the Companywas incorporated into STAR ?? index,showing its potential as a technologychampion.
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Corporate Governance
Complying with Business Ethics
Enhancing Corporate Governance
Sound corporate governance is the cornerstone of companies' sustainable and healthy development. Attaching great importance togovernance codes, iRay Technology strictly adheres to the Company Law of the People's Republic of China, the Securities Law of thePeople's Republic of China, the Code of Corporate Governance for Listed Companies and relevant laws and regulations. In addition,the Company e?ectively implements the Articles of Association to improve the governance structure, strengthens informationdisclosure and investor relation management, promotes modernisation of governance capabilities, and drives high-qualitydevelopment of the Company
The Company highly prizes the management of business ethics. We strictly comply with relevant laws and regulations, including butnot limited to the Company Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China,the Anti-Monopoly Law of the People's Republic of China, and the Interim Provisions on Prohibiting Commercial Bribery. Under thewell-structured management framework and e?ective management mechanism, the Company has widely built integrity and imposedanti-corruption policies on suppliers, creating a good working atmosphere of moral integrity.The Company o?ers regular compliance training for employees, management, and directors to strengthen the oversight of internalbusiness ethics norms. When cooperating with suppliers and customers, the Company follows the compliance concept of anti-briberyand anti-corruption by clearly stipulating the standards involving bribery, insider trading, con?ict of interest and other aspects. Tostrictly implement the anti-bribery and anti-corruption concept, the Company also added relevant anti-corruption provisions in thecon?dentiality agreement template to further emphasise the importance of integrity to its partners. During the procurement, theCompany requires suppliers to sign the Letter of Commitment on Integrity in which they promise not to provide bribery of any form,illegitimate gains, etc., to related persons and stakeholders. In addition, the Company sets up uninterrupted complaint channels forsuppliers, like e-mail legal.dept@iraygroup.com, and encourages suppliers to report any noncompliance they discover and identify tocombat corruption. During the Reporting Period, the Company reported no noncompliance with business ethics.
iRay Technology has established a decision-making and management system with shareholder meetings, board of directors,supervisory board and senior management as the main body structure. This system standardises the operational managementprocess and provides organisational assurance for e?cient and stable operations. The Company's board of directors has establishedaudit, nomination, remuneration and appraisal, and strategic committees, with clear responsibilities for each committee, ensuringrational allocation of resources and scienti?c and e?cient decision-making. As of December ??, ????, the Company's board ofdirectors has8 directors, including 3 independent directors. During the Reporting Period, the Company held 8 board meetings andreviewed 48 proposals.
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Governance Structure of iRay TechnologyThe Company puts a high value on information disclosure. We strictly follow the Regulation on Information Disclosure of ListedCompanies, the Listing Rules of Shanghai Stock Exchange and relevant laws and regulations while formulating Management Police onInformation Disclosure, the Management Police on Investor Relations and relevant rules to disclose information authentically,accurately, completely and timely.The Company maintains close interaction with investors, and formulates and strictly enforces relevant rules such as the InvestorRelations Management System. We actively organise investor activities, issue announcements, and respond to questions raised byinvestors on the Shanghai Stock Exchange E Interactive Platform. We carefully listen to investor suggestions, clarify investor demands,and ensure that all investors have equal access to information disclosed by the Company. The Company places great emphasis onsafeguarding investor rights and closely monitors investor concerns, evaluation matters, improvement suggestions, etc., strengtheninginvestor relations management.
Shareholdermeeting
Boardof directors
Audit committeeNomination committeeStrategy committee
Remuneration andappraisal committee
Ensuring Information Security
Strictly Adhering to Business Con?dentialityThe Company places a high premium on information security management and the protection of trade secrets. We strictly complywith the laws and regulations in the country or region where we operate on information security and privacy protection, including butnot limited to the Cybersecurity Law of the People's Republic of China, the Administrative Measures for the Graded Protection ofInformation Security, etc. The Company attaches great importance to the protection of intellectual property rights and informationsecurity, and has established a system of intellectual property rights management, with an intellectual property managementdepartment to encourage technical research and development personnel to apply for domestic and foreign patents to protecttechnological achievements. Besides, the Company has established relevant mechanisms to protect intellectual property andinformation security and manages various systems, data, and databases through standardised technical means. On this basis, theCompany also conducts training related to business con?dentiality to comprehensively ensure the security of data assets.
As an important intangible asset of modern enterprises and a critical manifestation of core competitiveness, business secretsare highly valued by the Company. The Company takes measures to prevent the leakage of business secrets from the sourceby establishing Con?dentiality Agreements and training employees on standardised behavior in protecting business secrets.For regular employees, in order to prevent the disclosure of business secrets such as intellectual property, the Companyde?nes the employees' responsibilities for protecting intellectual property in all labor contracts and employment contractsand requires all employees to sign the Business con?dentiality and Work Product Agreement which demands employees toful?ll their con?dentiality responsibilities and obligations. For the employees who have resigned or retired, the Companyrequires them to sign the Notice of Dos and Don’ts After Resignation, take back relevant documents, and specify theirresponsibilities and duration for con?dentiality. In addition, varying from the multi-level con?dentiality in o?ce, R&D,production and other places, the Company authorises di?erent levels of access control. It de?nes the scope of activities foremployees and visitors. During the Reporting Period, the Company continued the tradition of trade secret protection trainingby conducting o?ine intensive training for new employees in R&D and operation, the two core departments. Through ideadi?usion and case studies, this training raised con?dentiality awareness among employees who just start out in business.Regarding business partners, the Company sets up a Con?dentiality Agreement signing process before conducting businessexchanges to ensure business secret protection. In the procurement process, we sign purchase agreements with suppliers,which contain clear stipulations on issues such as ownership rights, licensing scope, and infringement liability, e?ectivelysafeguarding the Company's intellectual property rights and information security.
To ensure network and information security, the Company has implemented three major initiatives: technologicalempowerment, knowledge dissemination, and institutional safeguards to comprehensively conduct information encryption,anti-virus, and data backup. The Company utilises a professional data leak prevention system and transparent encryptiontechnology at the driver level to secure data encryption and ensure the security of data use at source. The Company alsoinstalls computer security software that has won multiple Virus Bulletin ???% Awards on its internal computers to detectvarious viruses, spyware, and hacker attacks at high speed and protect computer systems in real-time. Furthermore, theCompany uses a backup integrated machine to backup multiple types of server ?les in real-time, increasing informationsecurity. In terms of regular data management, the Company formulated the Rules on Data Backup Management, promotedthe data backup approach among employees and de?ned the data backup and recovery management process. Additionally,the Company provides its employees with enterprise email accounts that have built-in antivirus and email interceptionfeatures, and periodically sends out protective reminders on information leaks, fraud, and other security issues via email.
Preventing Leakageof Business Secrets
ESG Governance
iRay Technology sticks to the vision - iRay X-ray Technology Everywhere - and continues integrating ESG into its operations. TheCompany attaches great importance to the implementation of ESG-related work such as product quality, environmental protection,and employee health. To e?ectively promote the Company's ESG work, we have established a cross-departmental ESG working groupto manage and execute daily ESG-related a?airs. The ESG working group, led by the Board O?ce, consists of the factory a?airs andenvironmental safety center, the legal department, the project and sourcing center, the quality and customer support center, thehuman resources center, the R&D center, the sales and marketing center, the IT department and the personnel from its subsidiaries,continuously expanding ESG management responsibilities to all ?elds of iRay Technology.
iRay Technology ESG Report 20221920
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
Stakeholder CommunicationAssessing Material Issues
The Company's primary stakeholders include government departments and regulators, shareholders and investors, employees,customers, suppliers, partners, and communities. The Company values communication and exchange with stakeholders throughvarious channels to understand their demands and expectations in ESG areas, provide timely feedback, and formulate ESGmanagement strategies based on the communication results.
iRay Technology is committed to establishing long-term, stable, mutually bene?cial, and trustworthy cooperation relationships with allstakeholders. During the Reporting Period, the Company conducted material ESG issues assessment through industry analysis andsurveys on internal and external stakeholders to understand their expectations on the Company's ESG performance. The Companycombined the survey results with its business operations, identi?ed and prioritised important ESG issues for its operations andsustainable development, and used them as an important reference for continuing to carry out ESG management and disclosing ESGinformation. The materiality assessment is carried out in the following steps:
Taking into account expert opinions, actual businessoperations, and industry development characteristics,the Company identi?ed ?? ESG issues in three categories(governance, social and environmental), including:
Through questionnaires on internal and external importance tostakeholders and internal interviews, the Company assessed theimportance of key ESG issues from two dimensions - "importance toiRay Technology" and "importance to stakeholders", and drew amateriality assessment matrix based on the actual survey results todetermine the importance of the Company's ESG issues.
To secure accurate and adequate assessment results, the Company'smanagement and ESG directors reviewed and recon?rmed theresults, and the ?nal results are as follows:
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 e?ciencyCompliance 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 con?dentiality and information securitymanagementCustomer complaint handling
Workplace safety and occupational health managementProtection mechanism of employee rights and interestsSalary and performance managementEmployee promotion mechanismEmployee training programEmployee welfare activities
Shareholder meetingInformation disclosureInvestor meetingNews released on the o?cial website and other channels
Daily managementExchanges on meetingsSupervision and inspectionGovernment projectsAdvice and suggestions
Step 1: Identify material ESG issuesStep 2: Analyse the importance of the issues
Step 3: Verify the assessment results
Business ethicsCompliance managementCorporate governanceIntellectual property protectionInformation security and business con?dentiality
Emissions managementResource recyclingBetter energy e?ciencyResponse to climate change
Product 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 welfare
GovernanceSocial Environment
High
High
LowLow
Importance to iRay Technology
Importance to Stakeholders
Product quality and safetyCompliancemanagementCorporate governanceTalent attractionand retentionOccupational health and safety
Customer service management
Employee 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?dentiality
Business ethics
Intellectual property
protection
iRay Technology ESG Report 20222122
ESG materiality matrix of iRay TechnologyGovernanceSocialEnvironmental
R&Dinnovation
Topic ?: Medical Inclusion Services for Human Health
Topic ?: United to ensure stable production embedding great resilience of the Company
Insu?cient and unevenly distributed medical resources have attracted unprecedented attention from the globe. iRayTechnology remains true to the vision of " iRay X-ray Technology Everywhere". Narrowing the global health gap andpromoting medical inclusion have also become important areas to which iRay Technology is committed to contributing.With the advantages of highly cost-e?cient products and sound after-sales service, the Company practices inclusivemedical care with actions to serve the health of human beings. We are particularly concerned about more support formedical accessibility in developing countries. About 70% of the top ten customers of iRay Technology are fromdeveloping countries. During the Reporting Period, the Company sent 10 sales and technical support personnel todeveloping countries and regions, and carried out medical product promotion campaigns in developing countries andregions such as Southeast Asian countries, South Asian countries, Far East countries, Middle East countries and Africancountries, and our sales of ?at panel detector has increased 52%. In the future, iRay Technology will continue to increaseits spending on new technology and product R&D, further improving the product line of detectors and the global businessnetwork in the medical ?eld, so as to promot the accessibility and fairness of medical services, contribute to the globalmedical and health drive, and serve human health.
As a manufacturer of key components, the overseas subsidiaries of iRay Technology continued production in ????, andthe production in China has also withstood the pressure and challenges faced in the ?rst half of the year. Themanagement of iRay Technology and all employees worked together to demonstrate strong resilience amid the crisis.The Company's headquarters and R&D center employees joined a closed-loop o?ce or chose to adopt to online work toensure uninterrupted operation and R&D progress. Through strict closed-loop management, the Company can ensureuninterrupted production and supply, and also indirectly ensure the timely delivery of our downstream medical andindustrial X-ray equipment.
Emergency management of the leadershipWhen the Company's leadership realised the potential di?culties it could cause to production, proactively made thedecision to close production to ensure supply, and formulated emergency regulations such as the Factory Closed ControlSpecial Emergency Disposal Plan as well as forming a ??-hour prevention and control team to coordinate critical issuessuch as production management and material procurement.Scienti?c management of each departmentThe Company strengthened risk prevention and reinforced employees' prevention awareness through multiple channels,such as daily brie?ngs. Relevant measures were updated according to control requirements. During their stay in theclosed loop o?ce or factory, all departments regularly conducted regular inspections to promptly discover employeeneeds, health hazards, and other issues, and continuously improved the work environment.Concerted e?orts of all employeesIn face of a serious shortage of workforce in the second quarter, employees from various departments activelyresponded to the call to support production. During the closed production, all employees overcame great inconveniencein their daily lives and worked together with the Company to overcome di?culties, fully cooperating to ensure thenormal operation of the production line.Complete logistics supportDuring the closed production period, the Company provided employees with food, clothing, shelter, and transportation,and relevant logistics departments dynamically inventoried, urgently procured, and distributed materials in astandardised manner, ensuring the supply of the on-site personnel, implementing various prevention and controlmeasures, and ensuring a healthy production environment and an orderly production process.
iRay Technology ESG Report 20222324
ESG Topics in ????
The digital X-ray detector, high-voltage generator, integratedX-ray source and tube are the key components of X-ray imagingequipment, which plays a key role in the machine's quality andperformance. iRay Technology is committed to providingcustomers with safer and more advanced digital X-ray detectorsand other key components together with comprehensivesolutions. On the cornerstone of full-process qualitymanagement, we are driven by sound R&D management andinnovation incentive mechanism, apply digital technology toenable production, strive to deliver higher quality and greenerproducts to customers, and take responsibility for customersand end users.
Quality Management SystemInnovating leading-Edge ProductsDigital Production
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Serving Customerswith TechnologicalIngenuity
To implement the Company's quality management system, the Company has established a four-level quality management systemdocument, ranging from the Quality Manual to the forms and templates, covering product demand, design and development,production and manufacturing, product sales, after sales service and post marketing surveillance, to ensure products we sell are safeand e?ective through full process control. We integrate the relevant domestic and foreign regulations and standards into the systemdocuments and make timely adjustments to the dynamic changes in regulations and standards. During the Reporting Period, theCompany revised the Quality Manual, by mainly adding updates from the European medical device regulation (MDR) to make theproducts meet the local regulations.
With regard to quality control, the Company strictly maintains the safety of products from both R&D and production aspects and strictlycontrols the quality of products to ensure that its products comply with such standards as electrical safety, electromagneticcompatibility (EMC), sound output, for the sake of safety and reliability.In addition, the Company has developed the Control Procedure of Nonconforming Products to standardise the disposal process ofnonconforming products found in production process and after delivery. For the nonconforming ?nished products or self-madesemi-?nished products during production, the Company will re-manufacture or scrap them based on the actual situation. When thedelivered products are found to be nonconforming, the Company will immediately collect product information, analyse causes andassess risks to see how serious the injury or potential injury caused by the nonconforming products to patients and users is. Then theCompany issues advisory notices to the regulatory authorities and recalls those products if necessary. Since its establishment, theCompany reported no product recall because of quality issues.While continuously improving the internal quality system, the Company actively carries out external learning exchanges. During theReporting Period, the Company participated in the Small and Micro Enterprise Quality Management System Certi?cation ImprovementAction organised by the government of Suzhou Taicang Port Development Zone, and further improved the operation of the Company'squality management system according to the action requirements.
The Company regularly holds a variety of internal and external quality-related training and discussions around the quality managementsystem to implant quality awareness in employees. Internal training, mainly about regulations, is planned and carried out as demandedby each department. Also, the Company has outsourcing training, which mainly includes but is not limited to laws and regulations,quality management tools, internal auditor training, etc.While continuing to carry out quality training, since ????, the Company has regularly launched quality awareness promotion seminarsin all factories to share the related experience. Outstanding employees are praised in the seminars as encouragement in enhancingquality in routine operations. As regular seminars go further, the overall quality awareness among employees has also been signi?cantlyimproved.
Quality Management System
Full Process Quality Management
Building the Quality Awareness
The Company follows the Product Quality Law of the People'sRepublic of China, the Norms on the Quality Management forMedical Devices, and other laws and regulations and establishes aquality management system in compliance with ISO?????:????medical devices - quality management systems - requirements forregulatory purposes. In addition, the Company's qualitymanagement system has also passed the quality managementsystem certi?cation in the EU, US, Canada, Australia, Japan andSouth Korea, complied with local regulations and fully served theCompany's strategic need for global expansion. Meanwhile, wefrequently carry out internal and external audits to ensure thee?ectiveness of the quality management system. During theReporting Period, iRay Technology and its wholly-ownedsubsidiaries, iRay Taicang and iRay Haining, have passed thethird-party audit on EN ISO?????:???? medical devices - qualitymanagement systems - requirements for regulatory purposes.
iRay Haining and iRay Taicang held quality awareness promotion seminars
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EN ISO?????:???? system certi?cation of iRayTechnology and iRay Taicang, iRay Haining
奕瑞科技四层质量管理体系文件
Describe the management system according to the qualitypolicy and objectives and applicable standards.
Level ?Quality Manual
Describe the activities involved in the implementation of themanagement system elements; it is a supporting document of theQuality Manual.
Level ?Procedure document
Speci?c business guidance management standards,process documents, technical documents, instructiondocumentsand related reports.
Level ?Standards, process and guidance document
Templates for forms and other documents withformat requirements.Level ?Forms, templates
The Company's key product, digital X-ray detector, has a wide range of applications, but the demand for digital X-ray detectors indi?erent scenes varies greatly, which needs a variety of technologies. After more than ten years of development, with excellent R & D andinnovation capabilities, the Company has become one of the few digital X-ray detector manufacturers in the world that masters all themain core technologies, including: sensor design and process technology, CT detector technology, scintillation crystal material andpackaging technology, ROIC and low-noise electronic technology, X-ray intelligent detection and acquisition technology, and detectorphysics research and medical image algorithm. Among them, in terms of sensor design and process technology, the Company is the ?rstX-ray detector Company in China and one of the few companies in the world that simultaneously master the four sensor technologies ofamorphous silicon (a-Si), IGZO, ?exible substrate and CMOS , with stable mass production capacity and batch delivery.
Technological innovation is one of the core elements to drive the sustainable development of tech companies. iRay Technologyattaches importance to technology build-up and continued innovation, and builds a robust R&D management mechanism andinnovation incentive mechanism, providing an important foundation and guarantee for technological breakthroughs and productinnovation.
At the same time, in the ?eld of high-voltage generator and integrated X-ray source, the Company mastered key technologies such as thehigh-voltage insulation technology, high-voltage inverter power topology technology, and special auxiliary power technology.
iRay Technology has maintained a prudent attitude towards product design and established a complete product technical schemedesign process and risk identi?cation and management system.
During the product demand review at the initial stage, the Company will collect and identify information related to product demands toassess and ensure product safety and compliance, including functions, performance, availability, safety requirements, applicabledomestic and foreign laws, regulations, and standards of products, and requirements to avoid the use of hazardous substances.Meanwhile, the Company set a strict review system. We will hold a technical review meeting for each design scheme where seniorengineers with extensive design experience are invited to ensure the safety and completeness of the design scheme.
We build an outstanding talent team, focus on R&D investment, and consolidate the foundation of R&D innovation. As of December ??,????, the Company has408 R&D personnel, up 59.38% year on year. During the Reporting Period, the Company invested 238.75
million yuan in R&D investment, which accounted for 15.41% of the operating income, and had 83 new types of intellectual property(IP) registered or licensed (subject to the date of the certi?cate), including 20 invention patents.
Innovating Leading-edge Products
Mastering Core Technology
Product Design and Development
Boosting R&D Innovation
a-Si detector technologyThe most mainstream X-ray detector sensortechnologyHas large area, mature and stable techniques,good response to the spectrum range of generalX-ray, reliable materials, and excellentresilience, which can meet the needs of staticand dynamic detectors at the same time.
IGZO detector technology
Adopting a more advanced sensor arrayHigher acquisition speed and lower noise,which is an ideal technology for the large-scalehigh-speed dynamic detector.
Flexible substrate detector
technologyIt is deformable, bendable and non-fragmented. It can be applied to various sensorpanels of di?erent sizes and purposes for the
need of ultra-narrow frame, high seismicresistance and high reliability, and can adapt to
complex and bad medical and industrial
scenarios.
CMOS detector technology
Higher resolution,higher acquisitionspeed, extremely low noise andlow hysteresis than amorphousssilicon/?exible substrate/IGZOMeet the requirements of dynamic and static productsLimitde by the cost of process and raw materials,it hasobwious advantages in the application of small sizedynamic X-ray imaging equipment
CMOS
a-SiIGZO
Invention patentUtility model patentIndustrial design patentSoftware copyrightOtherTotal
Newly added in ????
?????????
Cumulative???????????????
Type of intellectual propertyThe Company's intellectual property as of December ??, ????
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Product design and development process
Four sensor technologies:a-Si, IGZO, CMOS and ?exible substrate
Four sensortechnologies
Productdemand review
Productinitiation
Design anddevelopmentplanning
Design anddevelopmentinput
Design anddevelopment
Design anddevelopmentoutput
Design anddevelopmentveri?cation
Designconversion
Design anddevelopmentcon?rmation
Massproductioncontrol
Post-marketmanagement
X-ray detector is one of the cutting-edge technologies
For R&D engineersProvide four sessions every yearto improve their ability to search,write and read intellectualproperty documents
For database usersProvide ?-? sessions every yearto improve their ability to search,read, analyse and track patentson intelligent database
For employees of the IP departmentProvide ?-? sessions a year toimprove the ability of sta? tosearch, sort out, argue for andcoordinate intellectual property
iRay Technology proactively practices the concept of "green X-ray" and explores "green X-ray" technology with continuous investmentin R&D. We are committed to bringing more e?cient products which feature lower clinical doses and better images to customers andterminal applications to reduce radiation damage to patients, users and the environment. In addition, we actively considerenvironmental factors in the product design, with a focus on product energy e?ciency and product packaging, promoting a sustainableenvironment.
To reduce the radiation dose of X-ray to the human body during the imaging process, the Companydevelops photon counting technology. Unlike the traditional detector composed of a-Si andscintillator, the photon counting-based detector is a direct one without electronic noise, which cansigni?cantly increase the conversion e?ciency of X-ray, reduce the necessary radiation dose, andimprove image quality.In the medical check-up, some body parts such as the spine and lumbar spine need to be detectedin a large area. The traditional detector needs multiple exposures to complete the detection, whichleads to an increase in the radiation dose of the person being tested. The Company designs a largedetector, Venu????V, to support the imaging of large objects. When detecting long bones and thecomplete spine, it can reduce the three exposures required for conventional detection to one, greatlyreducing the radiation dose of the person being tested.In terms of dynamic detector design, the Company reduces the radiation dose required by thedetector through improving the scintillator’s luminous e?ciency, panel ?ll factor, and other meansto protect the health of patients and operators.Based on the CMOS sensor technology, the Mammo????P detector can read images at a speed of?fps, and only needs a very low radiation dose.Using our high frame rate pulse high-voltage control technology, the high-voltage generator,integrated X-ray source and X-ray detector can be perfectly synchronised, signi?cantly reducing theX-ray dose required for clinical patient diagnosis.The TDI detector based on CMOS technology can achieve non-stop exposure and ultra-high speedimaging, and greatly increase the signal-to-noise ratio by multiple overlays of the target signal,signi?cantly improving the scanning rate or lowering the radiation dose rate requirements, whichimproves the image quality and mitigates the radiation dose to the environment.We try to streamline the redundant design in hardware circuits by removing unnecessary electronicmaterials and reducing the consumption of electronic components. In addition, we mainly optimisethe power supply topology and improve the overall power e?ciency, which reduce the powerconsumption of the whole machine and heat generation, thereby improve the performance of thewhole machine and reducing the loss of electronic componants.To reduce the frequency of battery replacement in the detector and lengthen the battery life, Marswireless detector has a new low-power mode, which can signi?cantly reduce energy consumptionand save battery power.The Company follows the concept of green development to improve the wired oral dental detector.Without compromising protection, the Company changes the separate packaging and mixestwenty-seven oral dental detectors in one packaging, which e?ectively saves packaging materialsand reduces the impact on the environment.
The Company encourages development and innovation by employees and conducted related training on intellectual property to equipemployees with appropriate skills. We train batches of new employees on intellectual property which covers the basic knowledge ofintellectual property and intellectual property systems in the Company. In addition, the Company carries out targeted training forrelated positions such as R&D engineers and employees of the IP department as needed by their position.
Meanwhile, the Company formulated a detailed incentive mechanism for intellectual property to motivate technical R&D personnel. Weprovide cash rewards to employees for applying for and licensing intellectual property rights, and set up relevant awards to recognizeinventors who have made signi?cant contributions, and motivate employees to draft high-value patents. During the Reporting Period,??? inventors contributed to intellectual property in iRay Technology, and the Company has issued a total of about ??,??? yuan inbonuses, and issued intellectual property contribution awards to relevant patent inventors who participated in the drafting of the ?rstinventor and won the high-value patent award, and awarded public awards within the Company.The excellent R&D team and sound innovation incentive have precipitated profound technology accumulation for the Company. iRayTechnology has been widely recognised for its professional strength. In ????, the Company's "Automatic customs declaration controlmethod and automatic exposure control component system" was awarded the "Excellent Patent of Pudong New Area, Shanghai". In????, the Company led the key projects of smart sensors in the national key R&D plan.
In ????, the Company, as the leader, worked on the project of "High-performance X-ray sensitive elements and online sensingapplications", which is the key project of smart sensors in the national key R&D plan. Since general detectors are hard to realisehigh-precision fast detection online due to internal complex working structures and defects, the project developshigh-performance X-ray sensors and industrial X-ray nondestructive testing systems for complex cavity structure detection andmeasurement, and perspective detection of multi-?lm structure. Further, it will be applied and veri?ed in industrialmanufacturing, civil aero motors, and new energy batteries.
Green Product Design
Training on R&D writingTraining on database use
Case: The Company led the project of "High performance X-ray sensitive elements and online sensing applications"
"Green X-ray" ? reducing X-ray radiation dose and protecting human health
Green design - reducing the environmental impact of products and protecting the green planet
Developingphoton countingtechnology
Venu???? detector
Reduce radiation doseof dynamic detectorMammo????Pdetector
Reduce the use ofelectronic componentsEenergy-e?cient Marswireless detectorImprove packaging ofIntra-oral dentaldetector
High-voltagegeneratorTDI detector
Intellectual property training for di?erent positions
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Professional training by theIP department
While we are committed to innovating cutting-edge products, we regard intellectual property as a vital intangible asset. The Companystrictly abides by laws and regulations such as the Patent Law of the People's Republic of China, the Trademark Law of the People'sRepublic of China, and the Enterprise intellectual property management, and takes multiple measures to protect its own and others'intellectual property. In ????, the Company was rated as Shanghai patent work demonstration entFerprise.
In order to ?t the sound quality management system and e?cient R&D capabilities, and serve customers with higher quality productsthat are close to "green" concept, iRay Technology actively applies digital technologies to production and operation. During theReporting Period, the Company upgraded the system applications and product (SAP) system and integrated the product lifecyclemanagement (PLM) system, manufacturing execution system (MES), ?nancial and cost management, and sales management, etc., toe?ectivly support the Company's digitalisation and improve the quality and e?ciency of the Company's production and operation:
In addition, the Company uses intelligent facilities such as an intelligent automatic warehouse and intelligent binding line to reducethe hard graft for employees and improve product quality and production e?ciency.
iRay Technology has instituted a sound intellectual property managementsystem and formulated the Intellectual Property Manual, which detailsregulations on the management of the Company's intellectual property suchas patents, software copyrights, trademarks, integrated circuit layouts, etc.Also, the Company assigns intellectual property liaisons in all departments tofacilitate the promotion and transmission of intellectual propertymanagement information.Besides, iRay Technology has formulated the Intellectual Property InfringementRisk Management System, which regulates the Company's mechanism to deal
MES system and PLM system
Protecting Intellectual Property
Digital Production
The intelligent automatic storage/retrieval system deployed by iRayHaining can quickly identify the speci?ed box number, batch number, orproduct serial number to be warehoused in and out. The intelligentmechanical arm could replace distant manual handling, which reducedthe workload, and improved operational accuracy and e?ciency.Meanwhile, the intelligent automatic warehouse could take stock quickly,and compare accounting consistency, bringing more e?ciency.
Case: Intelligent automatic warehouse reduced workload and improved production and operation e?ciency
with infringement by ourselves or by others, thus controlling such risk. When the clue of patent infringement is detected and veri?ed,the Company sets up an emergency team to research and collect evidence of damages caused, safeguarding its legitimate rights andinterests with laws. In the event of a patent-related dispute or alleged patent infringement, the Company carries out risk prediction,de?ne the level of the event and take action accordingly.In order to prevent the occurrence of intellectual property infringement, the Company monitors the changes in intellectual propertyrights in the industry. We keep up with the intellectual property dynamics of industry peers by using intellectual property database. Forthe technical routes that the Company's R&D center focuses on, the Company monitors multiple frequencies to avoid the risk ofinfringement or possible infringement in the R&D process. During the Reporting Period, the Company did not have any incidents ofintellectual property infringement.
Realize the digitalization and paperless productionprocess, shorten the information recording time ofthe whole production process of the product, andavoid the risk of losing paper documents and ?llingin errors.
Manufacturing execution (MES) system
Realize data management and collaboration in theproduct development and design stage, e?ectivelyimprove the e?ciency of project management,design change and bill of materials (BOM) documentrevision, and ensure the integrity, correctness andconsistency of product data.
Product lifecycle management (PLM) system
During the Reporting Period, iRay Haining installed the intelligent bindingline. It could upload equipment status, production parameters and otherdata to the MES system in real time, making the production line moreintelligent. In addition, the production line had signi?cantly bettere?ciency and quality than the previous one, and thus the risk ofscratches, dirt and electrostatic discharge (ESD) caused by the exposureto the thin ?lm transistor (TFT) glass had been reduced, which achieved asigni?cant improvement in the scratch scrap rates.
Case: Intelligent binding line enhanced quality and e?ciency
Intelligent automatic warehouse
Intelligent binding line
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Certi?cate of "Shanghai patent work demonstration enterprise"
Protecting Employees' RightsEmployee Bene?t and CareEmployee Development and TrainingOccupational Health and Safety
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Working Togetherto Create and Share
iRay Technology values employees as companies' core power tocreate value continuously. The Company pursuespeople-oriented and humanised management. The Companyfurnishes employees with ensured rights and interests,competitive salaries and bene?ts, and a scienti?c promotionmechanism, which helps employees fully tap their potential tobecome elites with competitiveness in the industry. Hence, theCompany works with employees to forge ahead and contributesto a good industry ecosystem.
iRay Technology values employees as companies' core power to create value continuously. The Company pursues people-orientedand humanised management. The Company furnishes employees with ensured rights and interests, competitive salaries and bene?ts,and a scienti?c promotion mechanism, which helps employees fully tap their potential to become elites with competitiveness in theindustry. Hence, the Company works with employees to forge ahead and contributes to a good industry ecosystem.
The Company can’t thrive without ever-growing employees. We respect the legal rights and freedoms of employees, promise themdiversi?ed and equal opportunities in jobs and promotion, and further broaden employee communication channels. We arecommitted to rewarding employees with decent working conditions.
Protecting Employees' Rights
Protecting Employees' Rights
iRay Technology builds diversi?ed channels of communication and feedback for employees to smoothen communication andencourage dialogue across the Company. The Company listens to their opinions through employee congress and other forms, caresabout and values their reasonable needs, and ensures that employees are entitled to labour rights. The Company also provides a??-hour online channel, such as an employee representative Wechat group and all centres’ service WeChat groups. In addition, theCompany o?ers access to appeals and complaints. Employees can directly report any noncompliance with the employment rules they?nd to the human resources department and the department head. Meanwhile, to have an overall picture of what employees thinkabout the Company, we have conducted annual employee satisfaction surveys for four consecutive years to guide optimisingorganisational construction.
Communication via Multiple Channels
The Company strictly abides by the Labour Law of the People's Republic of China , the Labour Contract Law of the People's Republic ofChina, and other laws and regulations of the country and region where we operate. The Company signs the Labour Contract withemployees in accordance with local laws and regulations and the principles of legality, fairness, equality, voluntary actions, consensus,honesty, and credibility. In addition, based on the actual development situation of the Company, we have established and improvedthe relevant rules and regulations, such as the Employee Handbook and the Human Resources Control Procedure Document, inaccordance with the law, making clear provisions on recruitment, dismissal, work hours, vacation, salary, training, performanceassessment, and other aspects to protect the legitimate rights of employees.
Compliant Employment
The diversi?ed employee structure signi?cantly drives innovation and progress of the enterprise. Adhering to the principle of fairnessand equality, we never discriminate against employees based on race, social class, nationality, religion, disability, gender, sexualorientation, trade union membership, political party, or age. During the Reporting Period, ??.??% of women comprised theCompany's management team. In response to the rapidly growing market and human resource demand, the Company has acceleratedthe team building of subsidiaries in China, Germany, the US, South Korea, and Japan, with more than ?,??? employees worldwide.Over ??? new employees were hired during the Reporting Period, an increase of ??.??% over ????. positively increasing the localemployment rate and training digital X-ray imaging talents.
Diversity and Equal Opportunities
Regarding daily operations, iRay Haining and iRay Taicang launched the platform for reasonable proposals. Employees canscan the QR code provided by the platform and make statements or practical proposals on the production and comprehensiveservices in the iRay Haining (such as environment and safety, canteen, cleaning, landscaping, management, etc.). This activityfurther engaged employees, improved iRay Haining’s management, and enabled a comfortable work environment.
Case: iRay Haining and iRay Taicang established the platform to present reasonable proposals
ManWoman
???
??????
Number of Employees by
Gender
Aged ?? and underAged ?? to ??Aged ?? to ??Aged ?? and above
Number of Employees
by Age
???
????????????????
Doctor and aboveMaster’s degreeBachelor's degreeBelow bachelor's degree
Number of Employeesby Educational Background
Finance sta?Administrative sta?research sta?Production sta?Salesman
Number of Employees
by Profession
???
??
????????
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iRay Technology advocates work-life balance among employees. We have been optimising the salary and bene?t system to provideemployees with competitive salaries. Furthermore, we o?er bene?ts and activities that employees long for, creating a healthy,pleasant, and comfortable working environment.
Employee Bene?t and Care
Ray Technology provides employees with competitive compensation and bene?ts. We developed a multi-dimensional salarymanagement system, which combines monthly or annual salary and stock-based compensation to integrate personal careers with ourlong-term goals. Our Year-end Bonus and Salary Adjustment Plan formulates targeted compensation policies for all positions andlevels, which makes the internal compensation system fairer and more encouraging for a win-win situation between the Company andemployees.In addition, to attract and retain core talents, the Company has tried employee incentive mechanisms, established competitivecompensation incentives, and restricted stock incentive plans to combine individual gains with our long-term goals. The Companyimplemented the ?rst restricted stock incentive plan to improve the compensation incentive system by continuously promotingmedium and long-term incentive mechanisms. Also, the Company handles the registered permanent residence for talentedemployees, returned overseas students, senior employees and new graduates in Shanghai to enhance employee loyalty, thusattracting and retaining outstanding talents and enhancing Company cohesion.
Employee Compensation
The Company strictly abides by the laws and regulations of the country and region where we operate, such as the Regulations on PaidAnnual Leave of Employees of the State Council. Also, we formulated the Employee Handbook based on the actual conditions, whichprescribes and enforces the standard working day, employee leave system, etc., so that each employee is entitled to paid annual leaveas regulated. Meanwhile, employees can apply for di?erent types of leave, including annual leave, personal leave, sick leave, maritalleave, maternity leave, mourning leave, leave in lieu, and industrial injury leave.In accordance with local laws, the Company fully pays social pension and premiums for medical care, industrial injury,unemployment, maternity, and other insurance for employees on time. Besides, the Company pays supplementary provident fundsfor employees in some cities to relieve the pressure of buying houses on employees. In addition, the Company o?ers free commercialinsurance for employees and their children to increase employees’ sense of belonging. We comply with local labour law for overseasemployees and provide them with social security bene?ts such as pension and medical insurance.
Employee Bene?ts
In addition to providing employees with competitive compensation and bene?ts, we also arrange free physical check-ups every yearand provide cross-park shuttle buses and talent apartment rental services. We regularly distribute birthday welfare cards, holidaypackages, hospital allowances, and wedding and funeral funds for employees in need. To enhance the cohesion among employees,we carried out various sta? activities, such as group tug-of-war, table tennis, basketball and badminton.
Employee Care
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Working environment and team building activities
Employee bene?ts package
During the Reporting Period, the percentage of employees trained by gender and the average training hours per employee in Shanghaiheadquarters and its main subsidiaries, iRay Taicang and iRay Haining, are as follows:
Outstanding strength and an excellent talent team are the core competitiveness of the Company, which guarantees the Company'sindustry-leading product technology and services. We implement a fair and e?ective performance appraisal and promotionmechanism to fully stimulate the enthusiasm and creativity of employees, which steadily improves the Company's operating e?ciencyand promotes long-term stable business, laying the foundation for sustainable and healthy development in the future.
iRay Technology attaches importance to the building of the talent echelon and employees' career growth, providing employees withsu?cient and equal opportunities for training and development. We hire mid-to-high-end talents of various business functionsinternally and externally, and continue to recruit new graduates through campus recruitment for systematic training. Based on theoverall strategic objectives, performance targets of departments, and the actual needs of post skills, the Company formulates annualtraining plans by department and post on the premise of joint development of the Company and employees.The Company has established a graded talent training mechanism. As required by the Human Resources Control Procedure and theneeds of each department, the Company prepares training plans every year. It conducts systematic training on products, quality regu-lations, specialities and other categories. The training covers induction training for new employees, continuous business training,quality management, management capacity, general skills, product knowledge, and training required by laws and regulations. Thetraining plan is practised internally and externally on tutorial systems, seminars, classroom learning, online learning, etc. During theReporting Period, we organised 257 training sessions, allowing employees to progress and grow together with the Company.
Employee Development and Training
The Company has formulated the Performance Assessment and Rating Plan established a classi?ed performance assessment system.We comprehensively assess performance, ability, working attitude, and behaviour among regular employees during the appraisalperiod every year. We have also formulated the Rank and Position System Table and informed all employees of their career paths byemail to make the information open and transparent. The Company sets the career path in management, technology, speciality andsales. According to the strategic plan, the Company regularly reviews talent to maximise the full potential of talents and grow withemployees. To further choose the best candidates, we conduct employee competition activities yearly, providing promotionopportunities for front-line employees.
Employee Promotion
Employee Training
iRay Taicang follows the basic principle of "sta? development" as thegoal, creating a fair and open competition mechanism within theCompany and formulating the Management Rules for Blue Collar (Post)Job Orientation and Promotion. This document contains a detailed ?owchart of promotion management and speci?es the responsibledepartments of each link as well as the corresponding systems andmanagement approaches.Besides, iRay Taicang issues internal promotion competition notices onceor twice a year. Employees can participate in promotion through either an
Case: iRay Taicang promotion policies for blue-collars
internal recommendation or self-registration. After successfully entering probation, the Company provides special training tohelp them improve their professional competence and management abilities. After the three-month probation, candidates arerequired to participate in the defence of promotion, and top talents will be chosen during the review.
Percentage of trained employees
??.??%??.??%
Average training hours of employees
ManWoman??.? hours??.? hours
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Candidate review at iRay Taicang
Photos of the ???? new employee training camp
ManWoman
The Company rigorously 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.Furthermore, the Company follows the safety policy of "Safety and Prevention First and Comprehensive Management" and the basicprinciple of "Production Safety is Everyone's Responsibility"; hence, iRay Haining and iRay Taicang incorporated the workplace safetyobjectives into the performance assessment of departments and individuals, and fully implement the safety production systeminvolving all employees.iRay Taicang has passed the Level-? certi?cation of safety production standardisation, and built a dual prevention system - graded riskcontrol and hazard detection and management. At the same time, we have developed a comprehensive safety training system throughmultiple levels (such as among factory level, workshop level, and team level), all channels ( such as in the form of training, lectures, andmeetings) and di?erent feedback (such as through system, practice and test questions). This system improves the breadth and depth oftraining and strengthens the training e?ect. We strive to raise safety awareness and shape a culture, where all employees areencouraged to strengthen safety awareness. In the daily operation, the Company takes actions on safety management to reduceoperational risks, ensures the health and safety of employees, and lays a ?rm foundation for daily operation and businessdevelopment.During the Reporting Period, iRay Taicang and iRay Haining both set annual workplace safety targets according to their operation: iRayHaining set indicators in EHS compliance, incident control and management control according to the Statement of Responsibility inEHS Management; iRay Taicang also developed the annual objectives and quantitative targets of workplace safety. The former safetyindicators include zero major accidents, zero environmental pollution, the achievement rate of safety training, the rate of physicalcheck-ups, and the rate of certi?ed workers. Those tasks are assigned to each department, the responsibilities are broken down layerby layer, and the results are incorporated into the performance assessment. During the Reporting Period, our timely hazard recti?cationrate, the on-job rate of special operation certi?cate, the permit rate of special equipment licence, the rate of workers receivingthree-level safety education, the rate of ?re protection maintenance and detection, and the rate of operation application control haveall reached100%.
iRay Technology pays much attention to the health and safety of employees. The management is directly responsible for occupationalhealth and safety across the Company. Through a sound management system and comprehensive protection measures, we maximisethe prevention and control of occupational health and safety risks to create a suitable working environment for employees.
While optimising the safety management system, we also enhancedsafety awareness among employees in the production base. During theReporting Period, iRay Taicang set up a top-down safety training systemfor all employees with thematic safety training suitable for the Companyand its employees. For example, we started the month of safety for allemployees, enhancing their skills to identify safety risks, and improvingtheir ability to identify risks and hazards, thus practising the workplacesafety accountability system.Besides, iRay Haining had an emergency drill plan and annual EHStraining plan during the Reporting Period, mainly on the month of safetyand the month of ?re ?ghting. The activities included safety quiz shows,hazard photo shooting, electrical safety training, etc., which raisedemployees' awareness of safety production.
Bulletin board for the month of workplace safety at iRayHaining
Bulletin board of activities at the month of workplacesafety at iRay Haining
Occupational Health and Safety
Workplace Safety Management System
Workplace Safety Training
During the Reporting Period, iRay Haining prepared management documents related to workplace safety, including EHSResponsibility Management Regulations, Emergency Management and Response Procedures, Fire Management Regulations,and Hazard Troubleshooting Management Speci?cations. These documents standardised management of internaldepartments and external related parties to increase the safety index during production continuously.iRay Taicang regularly updates safety management systems and makes adaptive modi?cations during the Reporting Period to?t on-site safety management. iRay Taicang has been certi?ed by the Level-? certi?cation of production safety standardisationand has built a dual prevention system of graded risk control and hazard detection and management.
Case: iRay Technology Production Base continued to improve the EHS management system
On December ?nd, ????, iRay Taicangengaged 100% of employees in ?resafety training, covering ?re extinguishingtheory and practice of ?re ?ghting andemergency evacuation drill. During thetraining, employees actively exercisedand achieved good results.
Case: Internal training and practical operation drill of ?re ?ghting at iRay Taicang
Fire safety training at iRay Taicang
On October ??th, ????, iRay Haining invited external lecturers to conduct electrical safety training for the sta?, with a ???%
Case: iRay Taicang and iRay Haining conducted outsourcing training on electrical safety
Electrical safety training held at iRay Haining
participation rate. During the training,employees actively asked questions, andthe training was e?ective.In the second half of ????, iRay Taicangarranged for internal sta? to attend thebasic knowledge training for electrician'slicenses to improve their professional abili-ty. All employees are supposed to take uptheir posts after securing the certi?cate.100% of them actively attended this train-
ing, and they all successfully obtained thelow-voltage electrician certi?cate.
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iRay Technology strictly complies with the laws and regulations of the country and region where we operate, such as the Law of thePeople's Republic of China on the Prevention and Control of Occupational Diseases and the Decision of the State Council on FurtherStrengthening the Occupational Health and Safety. In combination with the Company’s internal situation, our production bases, iRayTaicang and iRay Haining have respectively prepared the Management Regulations on Identi?cation and Improvement of Ergonomics,the Occupational Hygiene Management System, the Management Regulations on Protective Equipment for Labour, and otherdocuments. They are committed to reducing occupational hazards in the workplace to a greater extent and protecting employees'occupational health.We regularly arrange occupational health check-ups for personnel exposed to occupational hazards and invite a quali?ed third partyto test and evaluate those hazard factors in the workplace. Besides, iRay Haining prepared rules on pre-assessment of occupationaldisease hazards and the design of occupational disease protection facilities, supplied more protective facilities during production,monitored and controlled toxic and hazardous sites, and o?ered physical check-ups and personal ?le management for those close tooccupational disease hazards. Similarly, iRay Taicang identi?ed the occupational hazard factors in the workplace and set upoccupational hazard control measures, such as providing dust collectors to e?ectively collect welding fume near the site; operators arerequired to wear dust masks and protective gloves for personal protection.In addition, to reduce the potential risks caused by chemicals to employees, the Company has prepared the Management Regulationson Chemicals and other documents to standardise the management processes of chemical procurement, storage, transportation, use,and disposal. Also, iRay Haining carried out the on-job training plan - Safe Use and Storage of Chemical, to improve employees'awareness of safety and self-protection.
While protecting employees' occupational health, we also care about their physical health. We invited external professionals to guideand train employees to master basic ?rst-aid skills to cope with emergencies.
In addition, we are concerned about the health and safety of the relevant parties entering the production base. We have developedManagement Regulations on the Contractor's EHS and the Management Regulations for the Safety of Related Parties. The policiesrequire the base managers to review quali?cations, approve the factory entry process and working, and o?er EHS training forcontractors. Also, the base managers should oversee and inspect the operation process to further standardise the construction byexternal personnel in the production base and thus avoid accidents.
Protecting the Occupational Health of Employees
Protecting the Health and Safety of the Relevant Parties
iRay Technology continues to make products with lower-dose radiation, but how to avoid potential injury caused by radiationto employees during operation is still the top priority for us to protect employees' health. We require that radiation operatorsmust receive safety training on radiation and obtain certi?cates before taking up the post. Our production bases haveestablished the Management Rules and Regulations on the Safety and Protection of Radiation, which requires strictimplementation of the procedures of occupational health monitoring and archival records for personnel. The sta? ofX-ray-related positions are required to participate in the training for a work license and familiarise themselves with the on-siteradiation protection facilities and on-site equipment and facility management. They also need to master the standard sitesafety operation requirements, radiation protection requirements, etc., reducing the occupational health risk of employees atthe source.
Case: Prevent radiation
In August ????, iRay Taicang o?ered ?rst aid training. This training invited lecturers from Taicang Red Cross Society to give ?rstaid knowledge training to the Company's manager and sta? representatives at all levels, including hemostasis, bandage,handling, cardiac resuscitation, and other ?rst aid skills.
Case: Personnel ?rst aid training at iRay Taicang
First aid training at iRay Taicang
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Strengthening Environmental ManagementComplying with Emission StandardsOptimising Resource ManagementResponding to Climate ChangePromoting Green O?ce
iRay Technology ESG Report 20224748
Clean Productionand Green OperationiRay Technology upholds the concept of green development. Inregular production and operation, we continue to deepenenvironmental management, reduce pollutant emissions,promote energy conservation and emission reduction, optimiseresource management, actively promote environmentalawareness, and strive for the coherent growth of theenvironment and economic bene?ts.
In production and manufacturing, we have launched energy-saving andemission reduction e?orts through technical improvement to promotecleaner production. We have improved the coating equipment and ?xtures,achieving a breakthrough from "? piece for ? furnace" to "? pieces or morefor ? furnace" in the coating process. As a result, the corresponding waterand electrical consumption of a single piece have decreased by about50%, e?ectively improving the resource utilization rate.
Vacuum coating equipment
Air conditioning’s hot water system
The hazardous waste is collected by classi?cationand disposed of by a quali?ed third-partymanufacturer.
Case: Continuous improvement of production processes to increase energy resource utilization
iRay Technology actively ful?lls its responsibilities and obligation for ecological protection and strictly complies with the laws andregulations of the country or region where we operate, such as the Environmental Protection Law of the People's Republic of China.Our subsidiaries, iRay Haining and iRay Taicang have developed and issued internal regulations such as Management Rules on WasteGas, Waste Water, and Industrial Residue and Noise and Management Rules on Resources and Energy Management, and establishedan environmental management framework involving senior managers and all departments to ensure the standardization ande?ectiveness of environmental management work, thereby continuously improving the overall environmental performance of theCompany.In addition, we regularly monitor emissions, and the environment to timely know the environmental performance at each site. We alsohave an environmental emergency plan to respond to and handle those emergencies immediately. During the Reporting Period, theCompany reported no noncompliance with environmental laws and regulations.
Strengthening Environmental Management
iRay Technology strictly complies with the laws and regulations of the country or region where we operate, such as the AtmosphericPollution Prevention and Control Law of the People's Republic of China, the Water Pollution Prevention and Control Law of the People'sRepublic of China, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste,etc. Since iRay Technology’s main business is the research and development, production, sales, and service of digital X-ray detectors,and it is not classi?ed as a key pollutant enterprise regulated by the environmental protection department. The Company hasestablished an emission management system and installed and regularly maintained wastewater and waste gas treatment facilities toproperly dispose of all kinds of emissions. We continuously optimise our emission treatment approaches to reduce the environmentalimpact, and the major measures include:
iRay Technology has set up a sound energy management system and continues to deepen its work on energy conservation andcarbon reduction. We have set up a cross-departmental cooperation structure for energy management and established annual energytargets based on historical electricity consumption data, production planning and other indicators. At the same time, we activelymonitor energy consumption data, promptly follow up on abnormal situations, and continuously optimise energy utilizatione?ciency. In addition, we continue to develop and implement technically safe and reliable, economically feasible and reasonableenergy-saving projects, and improve energy utilization e?ciency through measures such as eliminating high-energy-consumingequipment, using energy-saving equipment and optimizing energy-saving processes. During the Reporting Period, iRay Haining used agreen digital software platform to improve the energy e?ciency of the data center by10% through digital tools such as energy
e?ciency comparison and AI control. The Company also encourages employees to participate in energy conservation and emissionreduction work and rewards the departments or employees with outperformance.
Complying with Emission Standards
Optimising Resource ManagementEnergy Management
During the Reporting Period, emission data of iRay Technology is as follows:
We actively apply greener and more environmentally-friendly designs andproducts and optimise the existing infrastructure. During the ReportingPeriod, we upgraded the air conditioning unit in iRay Taicang from an elec-tric heating system to a hot water system. This improvement can reduceapproximately one-third of the electricity consumption.
Case: Optimizing Air Conditioning System to Reduce Energy Consumption
Emission categoryUnitEmission in ????WastewaterHarmless solid waste treatedSolid waste treated
TonTonTon
???,???.?
???.??.?
Waste gas treatmentWastewater treatment
Non-hazardous solid waste treatment Hazardous waste treatment
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The waste gas is completely collected by the closedcollectors, adsorbed by the activated carbon andtreated by an alkali washing tower, to realize 100%standarded discharge.
All wastewater is being pretreated in the septic tankafter reaching the standard and discharged to thesewage pipe network designated by the localenvironmental department, and then is treated bythe municipal sewage treatment plant.
Non-hazardous solid wastes in di?erent categories arecollected, stored and treated: resource waste iscollected and handed over to quali?ed recyclingmanufacturers for recycling; solid waste generated inthe production process is handed over to quali?edunits for treatment; domestic waste is handled by theadministrative department.
Note: The energy consumption is calculated based on the consumed natural gas, gasoline and purchased electricity. The energy consumption and GHG emissions of natural gasand gasoline are calculated in accordance with the Accounting Methods and Reporting Guidelines for Greenhouse Gas Emissions of Enterprises in Other Industrie issued by theNational Development and Reform Commission; the GHG emissions generated by outsourcing power in China (outside Shanghai) shall be calculated according to the Notice on theManagement of Greenhouse Gas Emission Report of Power Generation Enterprises in 2023-2025 issued by the Ministry of Ecology and Environment; the GHG emissions generatedby the purchased electricity in Shanghai is calculated according to the electricity emission factor adjusted by the Shanghai Ecological Environment Bureau in ????; the GHGemissions generated by the purchased electricity of South Korea, the United States and Japan is calculated according to the ???? electricity emission factor issued by theInternational Energy Agency.
iRay Technology advocates comprehensive water conservation and actively promotes the recycling and reuse of water resources. Inregular operation, the Company installs water meters at each operation base to record and monitor water consumption, and regularlyreview water e?ciency. We implement and strengthen daily inspections, maintenance, and management of water equipment,promptly address leaks and other issues, and strengthen pipeline maintenance to reduce unnecessary water loss. At the same time,we actively promote the construction of rainwater collection devices and other recycled water devices to improve the e?ciency ofwater resource utilization. In terms of raising awareness, we widely post water-saving signs in production, living, and o?ce areas,clarify the Company's water-saving concept to employees, and improve their water-saving awareness.
iRay Technology standardises the management of material use in the production process and takes into account the environmentalimpact of each production stage, aiming to maximise the utilization of all types of materials in the production process.
In addition, during the Reporting Period, iRay Technology carried out the recycling and disposal of wooden products,cardboard, and plastic waste, and achieved speci?c results:
Water Resources Management
Material Recycling
Water DataWater consumptionWater consumption intensity
UnitTonTon/??,??? yuan of operating income
Consumption in ????
???,???.??.?
iRay Precision, a subsidiary of the Company, uses aluminium alloy and other metal materials during production. We attachgreat importance to the scraps generated in the production process and carry out the recycling and utilization of raw materialsin relevant process steps. If we are unable to recycle and handle the scraps directly, we classify and collect them and entrustquali?ed recycling companies to recycle and utilise the resources. Since the establishment of iRay Precision in August ???? tothe end of the Reporting Period, iRay Precision has recycled about 0.5 tons of leftover metal.
Collection of metal scraps
Case: Continuous Metal Scrap Recycling
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, the water consumptiondata is as follows:
Energy category
ElectricityNatural gasGasolineDirect energy consumptionIndirect energy consumptionTotal energy consumptionEnergy consumption intensityDirect greenhouse gas emissionsIndirect greenhouse gas emissionsTotal greenhouse gas emissionsGreenhouse gas emission intensity
UnitMWhCubic meterTonMWhMWhMWhMWh/??,??? yuan of operating income
tCO?etCO?etCO?etCO?e/??,??? yuan of operating income
Consumption in ????
??,???.????,???.??.??,???.???,???.???,???.??.?? ???.???,???.???,???.??.??
Emission category
Wood products recycledPaperboard recycledPlastic recycledTotal recovery and treatment
Unit
tontontonton
Recycling amount in ????
??.? ???.? ??.????.?
iRay Technology ESG Report 20225152
Responding to Climate Change Promoting Green O?ceThe Global Risk Report 2023 issued by the World Economic Forum highlights that climate risks such as extreme weather have becomeone of the top ten global risks, and climate change has become a major challenge for human society. This means that extreme weatherwill become more frequent with global warming and will signi?cantly impact social and economic activities. The Company strives toenhance its ability to respond to extreme weather risks caused by climate change. We have developed a Special Emergency Plan forNatural Disasters and established an emergency rescue command team led by senior management of the Company, to respond tovarious natural disasters such as ?oods, typhoons, and lightning accidents in the shortest possible time. At the same time, we haveestablished an Emergency Response Mechanism to further re?ne and implement speci?c response plans for scenarios such as poweroutages and water supply interruptions.We regularly carry out safety training against typhoons, high temperatures and other extreme weather for all employees to populariseand strengthen emergency knowledge. On this basis, we periodically conduct natural disaster emergency drills, and enhanceemployees' practical ability to respond to emergency procedures and ensure our e?ciency and e?ectiveness in responding to extremeweather.
iRay Technology practices and promotes the concept of green operation, incorporating speci?c environmental protection measuresinto various aspects of the Company's daily operation, and encouraging every employee to participate in green o?ce actions.
On August ??, ????, to timely and e?ectively prevent and handle heatstroke incidents caused by high temperatures, andenhance the Company's ability to respond to heatstroke incidents, the Company organised a simulation exercise on heatstrokeprevention and response. Through the exercise, everyone further familiarised themselves with the operation and use ofemergency equipment, learned and strengthened emergency operation skills, and e?ectively enhanced awareness andresponse capabilities towards high temperatures.
Training on heatstroke prevention and rescue of heatstroke patients
Case: Heatstroke Prevention and Response Exercise
On July ??, ????, the Company organised an emergency drill for ?ood and typhoon prevention, including material preparationbefore response, safety reminders during the response, measures to deal with urban waterlogging, and post-disaster relief work.We also promptly improved potential issues found during the drill to ensure emergency response capabilities before naturaldisasters. The Company accumulated valuable emergency response experience during this drill.
Filling ?ood-control sandbags, on-site personnel training, on-site emergency rescue operations
Case: Flood and Typhoon Prevention Drill
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 o?ce, reduce paper consumption through electronic work?ow, 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 o? the lights, air conditioners and other electronic equipment when
leaving the o?ce and assign personnel to patrol the area.·Set the timing for turning on and o? street lights according to weather conditions and automatically
switch o? 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.
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Supply Chain ManagementGreen Supply Chain
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SustainableSupply ChainiRay Technology has sharpened its supply chain managementcapability and has maintained long-term friendly cooperationwith suppliers to form a sustained and healthy partnership. Weare committed to building a responsible supply chain bene?tingthe environment and society, requiring suppliers to comply withour social and environmental requirements, and workingtogether to build a sustainable supply chain ecosystem.
We collaborate with our suppliers to promote the reuse of Electrostatic Discharge (ESD) boxes. After the suppliers use the ESDboxes to deliver materials, we collect them and store them in a designated location in our warehouse. We then periodicallyreturn the boxes to the suppliers for reuse, reducing packaging waste while also lowering their packaging costs. Our ESD boxrecycling rate exceeds 95%.
The Company lays down a range of internal regulations, such as the Management Rules on Supplier Selection and Assessment and theManagement Rules on Supplier Audit. Furthermore, the Company established a supplier management system involving seniormanagement and multiple departments. This system comprehensively controls all aspects of supplier development and audit, andsupplier performance evaluation, and ensures that suppliers meet the Company's requirements for quality and hazardous substances.
Protecting the green planet has become a global challenge. iRay Technology and partners in the supply chain are actively building agreen supply chain. We actively collaborate with supply chain partners to create a green ecosystem. We continuously strengthencommunication with suppliers in supplier assessments and daily activities, enhance our requirements for green environmentalprotection, actively convey our green operation concept, and collaborate with suppliers to carry out environmental protectioninitiatives, promoting the sustainable development of the supply chain.The Company asks all newly developed suppliers to sign a series of documents such as the Statement on Con?ict Minerals, RoHSCompliance Statement, REACH Compliance Statement, China Restriction VOC Survey and Statement, and Quality AssuranceAgreement to meet our requirements for a sustainable supply chain.In addition, we collaborate with upstream suppliers and downstream customers to explore the possibility of recycling packagingmaterials and lowering the impact of resource use on the environment together with the industry value chain.
The Company is committed to reducing product packaging materials and maximizing their utilization. We repurpose thecardboard boxes used for glass raw materials as internal intermediate product packaging. When packaging waste isgenerated, we ?rst inspect the condition of the boxes and reuse them as much as possible. For those that cannot be reuseddirectly, we collect and sort them for recycling by quali?ed waste recycling companies. In the reporting period, we recycledapproximately 30 tons of waste.
We also cooperate with clients to recycle carton packaging. We have a dedicated space in our warehouse called the"Recyclable Packaging Storage Area". After packing the ?nished products in cartons and delivering them to the customer, weregularly recycle the cartons from them for packaging materials in the factory. Up to 95% of the cartons in this project wererecycled.
In the process of supplier development and audit, we strictly review the quali?cations of suppliers in quality, hazardous substancemanagement, and other aspects, and give priority to suppliers who have obtained ISO???? Quality Management System and ISO?????Occupational Health and Safety Management System, and ISO????? Environmental Management System Certi?cation.
The Company conducts regular performance evaluations of quali?ed suppliers to review whether they consistently meet ourmanagement and product requirements. We conduct graded management linked to business share, and conduct monthly and annualperformance evaluations from multiple dimensions such as delivery timelines, product quality, etc. Based on the evaluation results,suppliers are classi?ed into four grades: A/B/C/D, and we incentivise suppliers to actively ful?ll our management requirements. Forsuppliers who fail the performance evaluation, we provide guidance through interviews, on-site evaluations, and other methods toassist them in meeting the Company's evaluation requirements.
As of December ??, ????, 100% of supplierssigned the Statement on Con?ict Minerals.
Supply Chain ManagementGreen Supply Chain
Supplier Development and Audit
Supplier Performance Assessment
Level A
Preferred in consequentcooperation
Level B
Maintain currentmanagement mode
Level C
Formulate improvementplans, urge their recti?cation,and lower the share ofprocurement
Level D
Gradually terminatecooperation
Case: Collaborating with Suppliers for the Recycling of ESD Boxes
Case: Collaborating with Client for the Recycling of Paper Boxes
As of December ??, ????, 100% of supplierssigned the Integrity Agreement.
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The primary process of supplier scouting and auditQuestionnair e surveyon potential suppliers
On-site inspection
of suppliers
Assess review results
Finalise the list ofquali?ed suppliersPropose demands forsupplier development
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Caring for Those inNeed and PayingBack to the Society
The Company upholds the concept of win-win cooperation andgiving back to society, always cares for those in need andactively performs social responsibilities with actions. Being wellaware of the importance of X-ray imaging and high-endmanufacturing technicians to increase medical quality andindustrial e?ciency, the Company utilises its own funds andresources to train high-quality technicians and researchers,contributing to national medical imaging and high-endmanufacturing.
With the transformation and change in the social economy, modern companies need talents with higher practical capabilities.During the Report Period, the Company, along with Jiangsu Taicang Secondary Vocational School, started a modern appren-ticeship-based class - iRay ????. The class adopted the dual system in talent training, deeply integrating industry and educa-tion. This new mode helps students grow into high-quality skilled talents with professionalism and practice in an environmentwhere they can work in companies while studying.
Thank you for reading the iRay Technology Environmental, Social and Governance Report 2022. We sincerely invite you to give yourcomments and suggestions on this report to help us better communicate valuable information to stakeholders and improve our ESGmanagement.You can ?ll in the feedback form and give it back to us via:
E-mail: ir@iraygroup.comAddress: Building ??, No. ????, Jinhai Road, Pudong New Area, ShanghaiPostcode: ???????、How will you rate the report?:
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Case: The Company created a dual system industry-education class "iRay ????"
The major mission of vocational education is to inherit technical skills and facilitate employment and entrepreneurship. Toenforce the guidance of Opinions on Promoting the High-quality Development of Modern Vocational Education", in November????, the Company communicated in depth with the teachers and students of Haining Technician School about modernapprenticeship training. We reached a consensus on future school-enterprise cooperation, which aims to jointly trainhigh-quality technicians and skilled talents.
Case: The Company trained high-quality technicians in Haining Technician School
Medical imaging is an important basis for disease diagnosis andtreatment, and therefore training technicians matters a lot toimprove the medical quality in China. In June ????, the Companydonated ???,??? yuan to the Education Foundation of Xi'anJiaotong University to build the "Diagnosis, Intervention and Surgi-cal Imaging" postgraduate innovation experiment platform of theBiomedical and Health Engineering Research Institute of WesternChina Science and Technology Innovation Port. On August ?st, ????,the Company donated a digital X-ray dynamic ?at panel detector(Jupi ????X) worth ???,??? yuan to the Education Foundation ofXi'an Jiaotong University, which facilitated the smooth develop-ment of related master and doctoral projects.
Case: The Company donated research funds and equipment to help the development of medical imaging
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iRay Technology Company Limited