MGI TECH CO. LTD.Leading Life Science Innovation
MGI TECH CO. LTD.Environmental Social and
Governance (ESG) ReportContents
Message From Chairman 01
About MGI Tech Sus tainable Development Transform Leading Life Science Innovation Adv ancing Life Science Tools for Future Healthcare
Company Profile 03 Sustainable Development Management 11 Enhancing the Accessibility of Genomics 29 R&D Innovation 51
Company Milestones 05 Key ESG Risks and Opportunities 15 Empowering a Healthy Future 31 Quality Management 63
Company Awards 07 Tools for Measuring Sustainable Development 24 Driving Sustainable Practices 38 Global Services 69
Sustainable Development Strategy 25 Jointly Building an Industrial Ecosystem 47 Sustainable Supply Chain 73
Leader in Compliance Governance Value Growth Partner Guardian of Our Environment Appendices 133
Corporate Governance 77 Employee Employment and Management 95 Environmental Management 115 Appendix I: About the Report 133
Operational Compliance 79 Employee Compensation and Benefits 99 Responding to Climate Change 116 Appendix II: Sustainability Performance 136
Risk Management 85 Employee Career Development and Training 105 Biodiversity Conservation 121 Appendix III: Index of Indicators 141
Data Security and Privacy Protection 87 Occupational Health and Safety 108 Resource Utilization 123 Appendix IV: List of Laws and Regulations 143
Fulfilling Social Responsibility 111 Waste Management 125 Appendix V: Key Annotations 145
Green Operations 128
Feedback 146Message From
Chairman About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Transform Innovation for Future Healthcare Governance Partner Environment
Message From Chairman
In this era filled with both challenges and opportunities MGI Tech firmly believes that technology has the
power to transform the world and drive progress in the life sciences. Driven by our shared vision of promot-
ing "health longevity beauty wisdom and happiness" for all humanity we are dedicated to becoming a
global leader in developing and promoting advanced life science tools for future healthcare.We continuously advance R&D and industrial applications of underlying technologies in life sciences dedi-
cated to delivering innovative solutions for global scientific research and real-world needs. Thanks to our
technological accumulation and ongoing innovation we have become the world's first company to offer
large-scale commercial mass production of both "short read length" and "long read length" sequencing
products achieving significant advancements in accuracy and sequencing throughput. StandardMPS 2.0
our next-generation high-throughput sequencing reagent has elevated sequencing quality to an Wang Jian
ultra-high accuracy level of Q40 marking another milestone achievement for the Company in the field of Chairman of the Board
excited luminous sequencing. This advancement positions the Company as the world's first leading enter- MGI Tech Co. Ltd
prise to deliver precise quality upgrades across its entire product line.By combining the strengths of both short-read and long-read sequencing products—like twin swords
working in unison—the Company has built a matrix of tools covering the entire workflow with the goal of "full
read lengths" (SEQ ALL). Additionally we make an active layout on building the Generative Lab Intelligence
(GLI) business for intelligent laboratory automation and expanding omics applications across the life cycle
based on the central dogma forming three major business segments. embracing AI technology we have
launched the DNBSEQ-E25 Flash sequencer and fully integrated AI into the field of life science tools and
upgraded the lab automation business to GLI. thereby promoting the progress of life sciences through
intelligent means. We promote collaboration in scientific research and accelerated the translation of
research findings. Since 2015 over 10000 articles have been published using the DNBSEQ sequencing
platform offering crucial technical support for scientific research precision medicine agricultural breeding
and testing and inspection. This has significantly contributed to breakthroughs in cutting-edge life sciences
and industrial innovation.When it comes to sustainable development MGI Tech is committed to embedding the vision of green
growth into every stage of product design and manufacturing. By using biodegradable materials and
energy-saving technologies we answer the global call for environmental protection and work to help
preserve our planet. We fully recognize that sustainable development is a long-term undertaking. We will
keep investing in and advancing this endeavor by driving green innovation fulfilling our social responsibili-
ties and enhancing corporate governance. In 2024 we won the Evergreen Award "Sustainable Develop-
ment Inclusive Award" which not only recognizes our efforts but also reinforces our commitment to keep
moving forward.Looking ahead innovations in life sciences will keep transforming our world. MGI Tech will firmly stand at the
forefront of technological innovation collaborate openly with global partners push the boundaries of tech-
nology and together create a new chapter in human health and sustainable development.
01 02About MGI Tech
Message From Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Partner Environment
The Global Reach of MGIAbout MGI Tech
Company Profile Stockholm Sweden
MGI Tech Co. Ltd. (referred to as "MGI" stock code: Riga Latvia
Boston USA
688114.SH) was established in 2016 with a vision to London UK Berlin Germany Changchun
"Leading Life Science Innovation". We are committed to
developing and promoting advanced life science tools Belgrade Serbia Beijing Tokyo Japan
for future healthcare. Our primary focus lies in the R&D Boston USA Qingdao Seoul and Cheonan South Korea
production and sale of instruments reagents and Kunshan Shanghai
consumables in the sectors of life sciences and Wuhan
biotechnology. By offering real-time multi-omics and Chengdu
full spectrum of digital equipment and systems we Dubai United Arab Emirates Shenzhen Headquarters
provide invaluable support to industries such as preci- Hong Kong
sion medicine precision agriculture and precision
healthcare. Singapore
The Company's main business covers three major
segments: genetic sequencers laboratory automation
and new business. Leveraging core technology we
provide customers with core tools for life science
research and applications committed to building an Brisbane Australia
Sao Paulo Brazil
open cooperative and win-win industrial ecosystem.We advocate for collaborative innovation with partners
to expand the industrial value of life science. The Com-
pany is headquartered in Shenzhen China with
branches and subsidiaries in Wuhan Qingdao Chang-
chun Hong Kong as well as the United States Latvia
Japan and other places. Its business layout covers Regional Office Comprehensive Base (production/R&D/marketing) Customer Experience Center
more than 110 countries and regions on six continents
and it has served over 3300 users worldwide.
20163300+6110+7139
Founding of MGI More than 3300 users worldwide Our marketing service network 110+countries and regions We have established 7 13 customer 9 major R&D
covers 6 continents promoting localized development production bases worldwide experience centers centers
03 04About MGI Tech
Message From Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Partner Environment
2023
DNBSEQ-G99 genetic sequencer obtained the Medical Device
Company Milestones Registration Certificate from NMPA
2018 MGI was awarded the 24th China Patent Gold Award the first gold
The gene sequencer BGISEQ-50 and robotic ultrasound 2021 award in the gene sequencing industry.system MGIUS-R3 won the iF Design Award
DNBSEQ-T7 genetic sequencer DNBelab Release of the DNBSEQ-T20×2 an ultra-high-throughput sequenc-
Launch of the ultra-high-throughput genetic sequencer D & DNBSEQ E "benchtop" sequencing er that sets new records for throughput and per-sample cost
DNBSEQ-T7 laboratory won the German iF Industrial Release of MGICLab-LN series automated liquid nitrogen storage
Design Award
Launch of the high-throughput automated sample systems
preparation system MGISP-960 Release of the high-throughput auto- Release of DNBelab C-TaiM 4 single-cell droplet generator
mated nucleic acid extraction system
MGISP-NE384 The European Patent Office declared the Illumina patent invalid
2019 enabling MGI sequencers to be sold in multiple countries.Release of the automated sample
Launch of the Global Sequencer User Program preparation system MGISP-Smart 8 and Launched the DCS Lab2023 Global Research Empowerment
2013 MGICLab-LT series of ultra-low ProgramRelease of DNBelab C Cellomics digital sample preparation temperature automated biobank
Acquisition of US-based Complete system DNBelab D series portable sequencer DNBSEQ E Launch of the first CEC in South Korea
Genomics series and other products Launch of the reagent production line at Establishment of the first αLab in Hong Kong (China)
the Qingdao production base
Official launch of the Latvia production base MGI's subsidiary Complete Genomics announced the construction
Launch of MGI CEC Australia of a production base in the United States.
2016 2020 2022 2024The ultra-high-throughput genetic sequencer Launch of HotMPS high-throughput sequencing reagents in the Introduced the next generation of sequencing
Official founding of MGI Tech DNBSEQ-T7 passed the emergency approval European market reagents StandardMPS 2.0 which inaugurates
procedure of China's National Medical Products Launch of TQ01 our independently developed magnetic bead the era of Q40 quality in genetic sequencingLaunch of genetic sequencer BGISEQ-50
Administration ("NMPA") and became one of the product that has successfully achieved mass production Launched the Brazil Customer Experience Center
first medical devices officially approved to be
marketed for public health prevention and control Release of the first digital sample preparation system DNBe- Released the new multi-omics product 2000RS
2017 lab-D4 that adopts the innovative digital microfluidic technol- FluoXpertGenetic sequencers the high-through- put ogy
ISO 13485 certification for medical device automated virus nucleic acid extraction kit and
MGI Tech's California Base in the United States
Launch of the new generation miniaturized genetic sequencer
quality management system robotic ultrasound systems all assisted the frontline
was officially completed
DNBSEQ-E25
of domestic and international public health Launched the new European headquarters in
Launch of the high-throughput gene prevention and control efforts. Release of the medium-to-low throughput genetic sequencer Berlin Germany
sequencers DNBSEQ-G400 and DNSBEQ-G50 DNBSEQ-G99
The automated sample transfer processing system 1000 DNBSEQ-G99 gene sequencers rolled off
Launch of the automated sample preparation MGISTP-7000 received the Medical Device Regis- Launch of genetic sequencers compatible with HotMPS the production line
system MGISP-100 sequencing reagents in the UK markettration Certificate from NMPA MGI Tech secured the global market distribution
Launch of the robotic ultrasound system Reached a settlement with Illumina for all lawsuits in the United Launched the DNBSEQ-Tx large-scale genomics rights for nanopore sequencing products along States and received compensation of US$334 million marking
MGIUS-R3 with t the intellectual property authorization and one-stop platform the official commencement of "Global Access Mode"t global market distribution rights for spatiotem-
The MGI Wuhan "Intelligent Manufacturing and R&D Opening of the first Customer Experience Centers (CECs) in poral omics products and embarked on the 6D
Base" broke ground the UK Germany Latvia Japan and other locations era of life sciences
Listing on the Science and Technology Innovation Board of the MGI Tech General Testing Laboratory was 05 06
Shanghai Stock Exchange with the stock code 688114.SH accredited by CNASAbout MGI Tech
Message From Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Partner Environment
Company
Awards
Vice Chairman Unit of IVD Branch of China Association
for Medical Devices Industry Shortlisted for Best Product Award in the
China Association for Medical Devices Industry "Health Medical and Biotechnology" Category
The Edison Invention Awards in the USA
Most Innovative Next
-Gen Sequencing Company 2024 Included in National-level Single
-product Champion Enterprises (2022-2024)
Global Health & Pharma Magazine
Ministry of Industry and Information Technology
(MIIT) of the People's Republic of China
2024 Outstanding Investor Relations
Construction Award for Listed Companies T20x2 and microneedle blood collection won the
China Valueonline Information Technology Co. Ltd. 2024 German iF Professional Product Design Award
iF International Forum Design/iF Industrie
Forum Design e.V.Corporate Awards Postdoctoral Innovation Practice Base Product and
Technology Honors The ultra-high throughput sequencer DNBSEQ-T20 × 2 Shenzhen Municipal Bureau of Human won the German Red Dot Product Design Award
Resources and Social Security
Red Dot Design Award
2024 Guangdong-Hong Kong-Macao Greater
Bay Area Enterprise Innovation Power List
— "Innovation Achievement List"
Expert Review Committee for the Guangdong DNBSEQ-T20 was recognized as a Special Mention
-Hong Kong-Macao Greater Bay Area in the Best Inventions of 2024
Enterprise Innovation Power List
TIME Magazine
2024 Evergreen Award
"Sustainable Development Inclusive Award"
Caijing Magazine
07 08Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Sust ainable Development Transform
As a leading high-end medical device company in China MGI has always integrated the vision of "To
Develop and Promote Advanced Life Science Tools for Future Healthcare" into its corporate DNA. With the
vision of "Leading Life Science Innovation" we firmly support the United Nations' 2030 Agenda for
Sustainable Development. By integrating the concept of sustainable development into our corporate
strategy and operations we aim to comprehensively enhance the Company's sustainable development
capabilities and business resilience thereby contributing to the realization of long-term value creation.At the same time the Company is dedicated to meeting the needs of its stakeholders in the ecosystem
including employees supply chain partners customers as well as the local community and institutions
promoting sustainable development of the ecosystem and society.MGI's short-term roadmap spanning from 3 to 5 years is centered around an evaluation process for
material topics that involves both internal and external stakeholders. This is complemented by the
establishment and improvement of a special internal governance framework that encompasses the
sustainable development team employees in-house experts and the Board of Directors.Moving towards the midterm (5 to 10 years) and long-term (10 to 30 years) strategies MGI will focus on
the critical issues highlighted in the United Nations Sustainable Development Goals (SDGs) and perti-
nent global climate scenarios ensuring alignment with its business model and global presence.This comprehensive approach to sustainable development enables MGI to significantly reduce risks
and generates tangible value by appealing to customers new talents and investors while fostering
innovation."Three Good" Culture Vision
Stay Healthy Study Well and Leading Life Science Innovation
Work Hard
Values Mission
Curiosity Application of To Develop and Promote
Knowledge Working for the Advanced Life Science Tools
Betterment of Mankind for Future Healthcare
09 10Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Sustainable Development Management
Sustainable development has become a global focal point and a shared pursuit among governments businesses and the Lead and supervise the Company's sustainable development
public. In 1987 the theme report Our Common Future submitted by the World Commission on Environment and Develop- Board of Directors and
ment to the United Nations General Assembly first systematically expounded the concept of sustainable development and Senior Management
efforts including the approval of ESG-related plans objectives
and systems
derived from it the "three principles of sustainable development" - sustainability fairness and commonality. In 2015 the
United Nations proposed 17 Sustainable Development Goals (SDGs) fostering a global consensus on sustainable develop- Review the annual ESG report
ment that can be universally embraced.We firmly believe that a complete ESG (Environmental Social and Governance) management mechanism is of great
significance for the top-down implementation of sustainable development strategies throughout all levels of the organi- Drive and monitor the implementation of ESG-related tasks
zation. In alignment with pertinent laws regulations and requirements for listed companies' governance the Company will coordinating with the executive team
constantly improve its corporate governance structure optimizing internal management establishing a comprehensive Sustainable Development
risk control mechanisms and proactively fostering the construction of a responsible business ecosystem. Working Group Verify the accuracy of content and performance data in the
annual ESG report
Regularly report the progress of sustainable development
Sustainable Development Strategy efforts to the Board of Directors
While striving to balance commercial success with sustainable development the Company dedicates itself to ensuring
that the concept of sustainable development is deeply embedded throughout every stage of its business value chain. By Execution Level Advance the implementation and execution of ESG initiatives
integrating its business operations closely with the United Nations Sustainable Development Goals the Company is com-
mitted to making a lasting impact on the future of life sciences and technology. Advance the implementation and execution of ESG initiatives
Stakeholder Communication
MGI Tech places a high priority on addressing the diverse needs of stakeholders. By establishing multiple communication
channels we actively listen to a range of perspectives on the Company's sustainable development. These channels serve
as a crucial foundation for refining our operational policies and sustainable development strategies. Our approach to
meeting the expectations and requirements of all stakeholders is outlined as follows:
Main
Stakeholders
Shareholders
and investors Customers Employees Supplier
Governments and
regulatory agencies Partners Community Public and media
Value creation Product quality Protection of rights and interests Compliant operations
Honest fulfillment of Honest fulfillment of contracts Community development Company business progress
Expectations Steady operations Innovative R&D Occupational Health and Safety contracts Tax Compliance Business ethics and transparency Environment protection Rights and interests of
and Demands Standardized governance Customer service Training and promotion Open fair and just Adherence to business ethics employeesInnovative R&D Rational resource utilization
procurement
Sustainable Development Stable supply Remuneration and welfare Economic development and Environmental and social
employment Occupational Health and Safety Social contribution responsibility
Drive business growth Conduct project cooperation Community exchanges
Test product quality Sign labor contracts
Company's Improve corporate Perform contracts in Abide by laws and regulations Focus on building business Green Operations Release company news
governance Increase R&D investment Ensure safe production accordance with the lawResponse Pay taxes honestly ethics Manage resources Organize company open
Approaches Ensure timely information Optimize customer Enhance training systems and Establish standard Strengthen supervision Increase R&D and transparently
days
disclosure service promotion mechanisms management systems collaborative efforts
Hire locally Participate in public welfare
Facilitate media
Develop sustainable Sign long-term Improve compensation Build a responsible supply Enhance occupational health activities and charitable interviews
business strategies agreements incentives and welfare systems chain and safety management donations
11 12Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Material Topics Identification
To clarify the focus areas of our ESG initiatives at MGI we have identified relevant ESG topics by integrating global Material Topics
sustainable development trends the current development stage of MGI material topics within the medical device
sector and insights from research on potential topics gathered from both internal and external stakeholders. * Social * Environmental * Governance
high
Identification Assessment and Review Process of Material Topics
* Precision medicine* Customer service * R&D innovation * Genomic accessibility
* Biodiversity
* Analyze the sustainable development context in which the Company * * Genomic SequencingIntellectual property rights management
operates; * Promoting industry
* Align stakeholder expectations and demands with the Company's * Data security and privacy development
business development; * Product quality* protectionTopics Employee training * Refer to standards and guidelines such as MSCI (Morgan Stanley Capital * Employee rights and
identification International) SASB (Sustainability Accounting Standards Board) and and development * Talent team building interests protection
the United Nations Sustainable Development Goals (SDGs); and
* Environmental * Employee compensation
* Examine the sustainable development/corporate social responsibility * Diversity and inclusiveness
strategies management and material topics reflected in the reports of management and benefits
peer companies.* Occupational health * Resource management and security * Corporate governance
* Risk management
* Waste management * Compliance
* Develop the MGI Material Topics Questionnaire and conduct opinion * Rural revitalization * Responsible business operations operations
surveys among the seven internal and external stakeholder groups
Topics including shareholders investors customers employees and others; and * Community * Carbon emissions
assessment * Public welfare and charity * Supply chain * Select core topics through questionnaire results analysis interview with relations management
internal and external stakeholders and expert assessments rank their
importance and provide detailed disclosure in the Report.low Importance to the Growth of MGI high
* The Company's leadership reviews the assessment results of the topics
Topics review in line with the Company's development strategy while functional MGI ESG topics identification matrix
departments review them based on management practices. Together
they ultimately confirm the core topics and their significance for MGI
taking into account external expert advice.
1314
Importance to StakeholdersSustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Key ESG Risks and Opportunities Macro-environmental Risks Opportunities in Clean
Technology
Identifying key ESG risks and opportunities is essential not only for managing current business risks but also for seizing Business Conduct
future development opportunities fostering continuous innovation and enhancing competitiveness. MGI Tech conducted Contributions to
a comprehensive analysis of the Company's entire value chain and its stakeholders utilizing a range of internal and exter- Corporate Governance Health and Wellness
nal tools. Following the "dual importance" principle the Company evaluated major risks based on their likelihood of occur- Data privacy and
rence and impact level to meet stakeholder expectations as much as possible. information security Comprehensive Support
for Life Sciences Big
Data Infrastructure
ESG
Tools for Identifying Key ESG Risks and Opportunities Green Operations ESG Risk Opportunities Diversification of
Product Reliability Industrial Applications
Internal assessment Ethical Workplace Collaborative Ecosystems
and Empowerment
Talent Development
Organizational Self-Review: Review the potential and Proficiency
environmental social and go Stakeholder engagement
Employee and Management Surveys: Conduct
surveys or interviews with employees at various Customer Feedback: Collect opinions and needs Elaboration of Risks and Their Impacts Policies Main Actions
levels and functional departments within the from customers;
Company. Suppliers and Partners: Strengthen supply chain
management and communication with partners. Macro-environmental Risks
Supply Chain Localization
External research and benchmarking
Supply chain localization: Give priority to
Industry Comparison: Analyze the ESG reports local suppliers or suppliers from
and practices of peers and competitors; * Logistics risks arising from the adjacent regions to reduce logistics
multiregional distribution of dependence and geopolitical impacts.Standards and Frameworks: Refer to international Risk and opportunity assessment tools suppliers such as transport Supplier Management
and industry-specific ESG standards guidelines Multiregional backup: Establish backup delays and cost fluctuations. Procedure suppliers in critical regions to avoid
and frameworks such as GRI (Global Reporting
SWOT Analysis: Conduct an analysis of strengths * Geopolitical risks (e.g. trade single-region dependence.Initiative) standards and SASB (Sustainability
weaknesses opportunities and threats; barriers policy changes
Accounting Standards Board) standards; Policy monitoring: Evaluate geopolitical tensioned international relations) dynamics and adjust the supplier layout
Scenario Analysis: Use different assumptions and
Legal and Regulatory Requirements: Compliance strategy regularly.scenarios to assess how potential future trends might
with relevant laws and regulations is a funda-
impact the Company's ESG performance and
mental requirement for businesses.strategy; Overseas Business Expansion
Materiality Assessment: Determine the most critical
* The rise of international trade Market diversification: Explore interna-ESG topics for our business and stakeholders through
protectionism has led to tional markets other than the U.S. Continuous monitoring and learning materiality assessment. uncertainties in laws and actively to reduce dependence on a
regulations trade restrictions in Develop the Risk Control single market and diversify risks. For
the life science industry Implementation Manage- example the Company can strengthen
Track Industry Trends and Policy Changes: increased costs and greater ment Standards maintain business development in Europe Asia
Changes in industry trends policies and regula- difficulty in market access. regular communication and other emerging markets.tions will continuously affect ESG risks and with regulatory authorities
* Geopolitical conflicts may Establishing a risk management
opportunities; Through the procedures outlined above we have in all places to ensure a reduce customer trust affect mechanism: Develop a comprehensive clear understanding of
delineated eight principal categories of ESG risks
Training and Education: Improve internal aware- cooperative relationships and
risk assessment and management plan
compliance requirements
and five principal categories of ESG opportunities pose potential risks to the identify potential risks and formulate
ness and response capabilities regarding ESG in local markets.which are to be detailed below: Company's overseas operations
response strategies to ensure that the
issues through ongoing training and education. and brand building. Company can respond to the complex international environment flexibly.
15 16Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Elaboration of Risks and Their Impacts Policies Main Actions Elaboration of Risks and Their Impacts Policies Main Actions
Business Conduct Data privacy and information security
Competition Law Operational Security
Continuously refine the information
Non-competitive behaviors By having compliance officers provide security organizational structure and
advance warnings for market monopo-
MGI's products are sold worldwide management system and perform routine listic behaviors as well as conducting
and are subject to national and security audits to ensure that all measures mid-process and post-event reviews
supranational competition laws adhere to industry standards;
and anti-monopoly rules. Competition Compliance
and offering employees compliance
Management System advice and guidance on anti-unfair Non-compliance can lead to fines Information Asset
Conduct comprehensive information asset
competition ensure that all corporate Balancing the confidentiality Identification and Risk identification risk assessments and and affect the Company's reputa- operations decisions external coopera- integrity and availability of
tion. Assessment Guide
mitigation across all business units
tion and development plans comply information assets to ensure
with anti-unfair competition laws. security and business efficiency. Information Security
processes and personnel;
Operations and Mainte- Bolster employees' information security
nance Management awareness by providing annual online
Corruption and Bribery Procedures training and assessment programs and
fortify the security team's operational
Establish an integrity portal to strength- readiness through periodic phishing
Corruption is defined as the en a culture of integrity; enhance exercises and simulated attack scenarios.misuse of authority for personal internal communication and training;
benefit. It may manifest through Product Security
the actions of third parties Internal Supervision Establish an internal complaint and
including partners suppliers Management Procedures reporting mechanism; In the product design process MGI Tech
agents and customers and can
exert a range of detrimental Red Line Management Participate in organizations such as the
strictly adheres to the Guiding Principles
for the Registration Review of Medical
effects on the Company: Anti-fraud Alliance and the Trust and Regulations Incentive Device Cybersecurity in China EU GDPR Integrity Enterprise Alliance among
Measures for Integrity and requirements and pertinent regional laws
* Company others and establish a comprehensive
Established procedures for
* Reputation and regulations;Self-Discipline
development blacklist system; Ensuring the protection of data
product data and privacy
* Law subjects' rights and upholding the protection processes for In terms of product development MGI Tech prioritizes the integration of informa-
* Finance * Employer brand
Regularly communicate with stakehold-
ers such as agents customers inves- legality fairness and transparency
responding to data
subjects' rights confiden- tion security to guarantee the security
tors and suppliers and sign integrity in the management of privacy data and reliability of its products;
commitment letters. throughout the data processing
tiality systems and
comprehensive privacy Engage third-party organizations to
policies conduct security capability assessments
Corporate Governance vulnerability scans and to award certifications for product security
ensuring that multiple products meet the
Transparency standards required for registration review
and GDPR compliance.Information disclosure Establish a sound information disclosure
The quality of information system and process to ensure the Green Operations
disclosure directly affects authenticity accuracy and timeliness of A sound information
investors' confidence in the information;disclosure system and Waste Management
Company as well as the Compa- process Strengthen communication with investors
ny's market image and stock and potential investors through various Allocate fund and technology to
price performance. means. introduce cutting-edge waste treatment Improper handling of "three equipment and technologies;
Compliance Operations wastes" (i.e. wastewater A stringent waste emissions and solid residues) Engage third-party organizations for management system
Implement a multi-stage internal control can result in substantial environ-
routine environmental monitoring
Referring to the process of a Internal Control Manage- that oversees waste services;management process including preven- mental harm impact neighboring
company complying with all ment Procedures tion auditing rectification and reporting generation handling communities and endanger and disposal at every Ensure a comprehensive and efficient relevant laws regulations industry with the aim of progressively improving
Daily Internal Control waste disposal system by entrusting the standards company policies and compliance standards; public health. stage recycling and disposal of waste to
ethical guidelines in its daily Inspection and Reporting
operations. Standards Organize training sessions on compliance
qualified environmental companies
operations and perform regular audits. adhering to rigorous standards.
17 18Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Elaboration of Risks and Their Impacts Policies Main Actions Elaboration of Risks and Their Impacts Policies Main Actions
Resource Utilization Ethical Workplace
Resource Scarcity Establish clear performance indicators Health and Safety
Price fluctuations availability of Supplier Management and challenging goals to motivate
Procedure suppliers to continuously improve their EHS Committee Manage-materials and resources Causing harm or illness to
delivery quality; and ment Procedures Regularly conduct activities such as
* Price fluctuations availability of Supplier Material Change employees EHS Objective Manage- Safety Production Month Fire Safety
materials and resources Management Specification Conduct quarterly performance
evaluations of suppliers with assess- * Loss or impact on employees ment Procedures
Month and online safety training and
Supplier Quality Manage- utilize official WeChat public accounts * Increase in raw material and ment criteria including but not limited * Loss of productivity Hazardous Chemical
energy costs ment Specification and video platforms to disseminate to quality delivery time service and Safety Management
* Property damage Procedures safety knowledge fostering a safety
* Supply interruptions cost. culture;
* Impact on company image Chemical Laboratory
Safety Production Organize annual fire drills chemical
Actively implement systematic * Impact on customer confidence Management Regula- emergency response drills and biologi-
Energy Consumption monitoring control and optimization of * Fines tions and
cal spill drills to enhance employees'
energy consumption to conserve emergency awareness and protective The impact of energy consump- Emergency Preparedness skills.tion on businesses is primarily Improved systems and energy and lower energy costs; and Response Control
reflected in cost competitiveness processes for managing Develop energy-saving and consump- Procedures
environmental impact and energy consumption tion reduction plans introduce
sustainable development. It is high-efficiency benchmarks and Fairness Diversity and Inclusiveness
crucial to emphasize energy energy management platforms and
conservation and emission adopt measures such as renewable Inclusive Workplace Standardize the employee recruitment
reduction enhance the efficiency energy and photovoltaic power to and entry processes to eliminate all
of energy use and reduce overall Failing to provide equal opportu-support the carbon verification forms of discrimination and bias;
energy consumption. nities for all can limit our ability to process and help achieve the dual attract and retain top talent. Facilitate cross-cultural exchanges to
carbon goals. Recruitment Management foster the integration of global teams;
Process Implement the "Female Employee Care
Product Reliability * Turnover costs Position Competency and Support Program" offering compre-
* Loss of female executives Certification Management hensive career development opportuni-
Safety Issues with Defective Products ties and instituting holiday and subsidy Standards
* Legal issues policies tailored for female employees
all while prioritizing their health and
Malfunctions or failures in products Establish a well-defined and efficient * Company image well-being.may lead to: quality management organizational Medical Device Product structure with the CEO as the primary Talent Development and Proficiency
* Liability for both tangible and Design and Development responsible person for quality and
intangible damages to partners Management Procedure safety the Executive Management Recruiting and Retaining Talent
and individuals; Production Management Team (EMT) as the operational
Procedure Customer decision-making body and the Global Conduct regular talent assessments
* Costs associated with product Service Management Quality System VP as the coordinator;
recalls new development The inability to attract develop
and formulate targeted development
Procedure
expenditures and the utilization Promote continuous improvement and and retain top talent in the market
plans which include offering a diverse
of technical and economic Quality Control Procedure lean production by establishing the particularly in areas with critical
range of training programs cross-de-
partmental job rotation opportunities
resources; and MBS MGI Lean System which focuses skills may lead to:Nonconforming Product Compensation and cross-departmental job rotation on enhancing and innovating in lean Management Procedure opportunities;
* Expenses related to new or Control Procedure research and development logistics * Recruitment and onboarding
more stringent quality and production quality assembly and costs Talent Development Provide employees with comprehensive and Recall Management
safety control standards or Procedure supply chain; * Gaps in key skills Management Process
benefits and support; and
regulations which may require Foster the "Three Good" cultural ethos and Design and implement a series of
capital investments or specific * Undesired perception on talent demonstrating respect for individual specialized quality management
compliance measures. brand lives and a commitment to the practice training programs. and pursuit of life sciences.
19 20Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Elaboration of Opportunities and Their Impacts Main Actions Elaboration of Opportunities and Their Impacts Main Actions
Opportunities in Clean Technology Personal Health Management
Low-carbon Products
With the growing public awareness of health Based on the 133111i strategy the Company is
Design and manufacture low-carbon environmen- management personal health management is developing multi-omics tools to promote
Increased global attention to climate change has led tally genetic products and conduct carbon footprint becoming an integral part of medical services. low-cost data generation for genomics radiom-assessments on certain gene sequencers;
to a growing demand for low-carbon environmentally Through multi-omics tools portable test equip- ics and wearable devices. In the field of genom-
friendly products from consumers and businesses. Integrate the concept of green innovation into ment and various technological applications ics the Company is committed to reducing
The opportunities brought by MGI in the development product development striving to make positive individuals can obtain comprehensive health data monitoring costs and promoting the application
and production of low-carbon products include: contributions to environmental protection at every that helps to achieve early disease prevention of early screening and individualized medication.stage of realizing product value; individualized health management and lifestyle In the field of imaging the Company deploys
* Meeting market demand and seizing growth Establish the "eDNA metabarcoding" technology adjustment. This not only improves the overall remote and intelligent ultrasound and improves
opportunities associated with high-throughput sequencing and health level but also reduces medical costs and the efficiency of image analysis and remote
eDNA sequences and release environmental eDNA
* Accessing funding and technical support metabarcoding sequencing combination products disease incidences effectively. consultation through AI algorithms with focus on
based on the ATOPlex multiplex PCR technology and ultrasound technology.* Enhancing the image in sustainable development the DNBSEQ sequencing platform. These products
and corporate social responsibility will offer a comprehensive end-to-end monitoring
platform for environmental DNA encompassing the Comprehensive Support for Life Sciences Big Data Infrastructure
entire workflow from sample collection to the
delivery of final analysis results. Deepening Innovations in Genetic Sequencing Technology
Contributions to Health and Wellness
Precision Medicine As its application expands and technological Relying on core technology and closely following
breakthroughs occur the market for genetic the trends of "miniaturization" and "ultra-high
Precision medicine has brought revolutionary chang- Develop and extend technologies such as whole sequencers and consumables continues to throughput" in genetic sequencers MGI has laid
es to the healthcare industry and realized more genome sequencing targeted sequencing and experience rapid growth. This brings MGI Tech out its sequencing instrument products into three
individualized and efficient medical services. By metagenomic sequencing based on DNBSEQ increased market demand opportunities for major series: the T series G series and E series.integrating patients' genetic information and lifestyle technology actively in order to improve the technological innovation and research and This is to build a high/medium/low throughput
data precision medicine can tailor treatment plans to accuracy of medical testing and treatment. development advancements in data analysis comprehensive ecosystem that covers multiple
patients. This approach not only improves treatment Moreover the Company aspires to advance and bioinformatics as well as opportunities for scenarios meeting users' diverse needs in various
effectiveness but also reduces side effects and precision medicine projects and promote the collaborations in the medical and health fields. application scenarios.promotes treatment process optimization and cost application of genomics research in cooperation
reduction thereby enhancing health management with medical institutions to achieve better patient
and disease prevention capabilities for patients. health outcomes.A Comprehensive Strategy for Digital Equipment and Systems in Life Sciences
Public Health Prevention and Control
Continuously advance our laboratory automation
The Company has launched a series of automated
Public health prevention and control is facing Through independent research and develop-and convenient core tools such as pathogen business with a strategic focus on developing a
increasing challenges especially in the context of ment and strategic partnerships we provide metagenomic sequencing targeted sequencing comprehensive suite of digital equipment and
major infectious disease outbreaks and emerging one-stop equipment and system platform for and whole genome sequencing technologies. These systems for digitization of life. This includes the
pandemics. Through effective monitoring and the digitization of life which can bring more tools support the monitoring early warning and introduction of innovative products such as the
response mechanisms public health prevention and diagnosis of public health events help healthcare market opportunities and higher brand value to BIT products cello mics technology platform
control can reduce disease transmission significantly workers identify pathogens quickly enhance the MGI Tech. remote ultrasound robot and ultra-low tempera-
enhance the overall anti-pandemic capacity of capacity to respond to sudden pandemic outbreaks ture automated biological sample libraries.society and ensure public health and safety. and strengthen national and regional public health
systems.
21 22Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Elaboration of Opportunities and Their Impacts Main Actions
Diversification of Industrial Applications
Diverse Application Scenarios
The development of genetic sequencing technology Beyond the relatively mature healthcare sector we
has provided deeper and more comprehensive have introduced the "New Ten-Ten" research and
genetic information bringing forth greater possibili- development initiative aiming to develop ten
ties and opportunities in fields such as personalized specific segments and create ten exemplary
medicine novel drug development crop improve- applications thereby expanding the scope of new
ment disease prevention and control as well as industrial applications.environmental protection and ecological research.Development and Application of Omics Research
Omics research offers a novel research perspective To meet diverse customer demands a comprehen-
and technological means providing extensive sive sequencing product line has been developed
opportunities to delve deeper into the fundamental covering a range from low-throughput to Tools for Measuring Sustainable Development
units and regulatory mechanisms of life. It serves as ultra-high-throughput data production capabilities.a scientific foundation for sustainable societal This comprehensive line supports the research and During the reporting period we undertook a thorough review of our company's ESG efforts. We utilized two complementary
development. development of omics. tools for this assessment: the Sustainable Development Impact Index and the Sustainable Development Basic Element
Index. These tools helped us establish a baseline for our company's sustainable development providing a foundation for
the comprehensive development of quantifiable performance indicators and for tracking the progress of our sustainable
Collaborative Ecosystems and Empowerment development strategies. The Sustainable Development Impact Index operates on the dual principles of financial and
Industry Ecological Construction impact importance. It integrates a range of indicators and assessment methods to gauge the extent of a company's
influence on environmental social and governance (ESG) issues. Meanwhile the Sustainable Development Basic Element
Index places greater emphasis on foundational aspects pinpointing key indicators that measure the Company's perfor-
We are committed to fostering an environment of mance in these crucial areas. Moreover our tools are designed to align with the SDGs facilitating the tracking of sustain-
This approach presents opportunities across open collaboration empowering the downstream
multiple dimensions including partnership market ecosystem and championing partnerships with
ability performance and the disclosure of reporting. MGI remains dedicated to upholding its sustainable development
goals reinforcing the implementation of corporate social responsibility.prospects technological innovation service innovative enterprises both domestically and
enhancement and resource integration contribut- internationally. Our efforts are directed towards
ing to the enhanced competitiveness and brand driving industry technological innovation facilitating
reputation. the application of research findings ensuring
compliance with qualifications and advancing
educational outreach.Focus on risk Balance the
Global Research Empowerment Program exposures and needs of
risk mitigation stakeholders
actions
We are launching the DCS Lab 2023 Scientific
Research Empowerment Program aimed at global
top-tier scientific experiments;
This initiative presents opportunities for technology
introduction international collaboration talent and introducing the next generation of sequencing
acquisition market expansion and financial reagents StandardMPS 2.0 which inaugurates the Transparent Address
support collectively contributing to strengthening era of Q40 quality in genetic sequencing; reporting and forward-looking disclosure
developing talents research capabilities broaden- Integrate four major life technology product lines issues mechanisms
ing market reach developing talents and acceler- including high-throughput nanoball sequencing
ating innovation. nanopore sequencing cell omics and spatiotempo-
ral omics and usher in the 6D era of life sciences.
23 24Sustainable Development
Message From About MGI Tech Transform Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Innovation for Future Healthcare Governance Partner Environment
Sustainable Development Strategy
Advancing Life Science
Tools for Future Healthcare
Leading Life Science Invest continually in core technology Operating responsibly and improving
Innovation R&D and provide globally leading the business environment
technology products and services
Leading life technology with innovative
and intelligent manufacturing 2024 Development Highlights:2024 Development Highlights:
Passed ISO 27001 Information Security Manage-
23 DCS Labs have been established worldwide ment System and ISO 27701 Privacy Information
2024 Development Highlights: which have joined by the Shanghai Center for Management System certification
Users from 75 countries and regions around Brain Science and Brain-Inspired Technology the
the world have published over 10000 Haihe Laboratory of Cell Ecosystem the National
11 internal control inspections were organized in
high-quality articles and studied over 5406 Cancer Centre Singapore the Peking University
total.species based on the DNBSEQ sequencing Institute of Advanced Agricultural Sciences Organized 2 risk management training sessions
platform. Fujian Medical University the National Model
Animal Science Center of China Agricultural A total of 2233 employees received integrity
Keep promoting the application of sequencers University and the Institute of Health and training
to fields such as disease control customs Medicine at Hefei Comprehensive National No cases like administrative penalties or
microbiology justice and animal pandemic Science Center etc. violations of laws and regulations
education
The Company has passed 65 audits by regula-
Initiate the "Spatiotemporal and Single-cell Big tory authorities successfully.Science Support Program" alongside over 30
DCS ecosystem partners officially. 0 adverse reaction incident and 0 product recall Leader in Compliance
Customer service satisfaction: 98.3 points Governance
100% auditing on supply chain manufacturers
Guardian of Our
Environment Value Growth Partner
Promoting green operations and Embracing diversity and inclusiveness
low-carbon development and practicing social responsibility
2024 Development Highlights: 2024 Development Highlights:
All global research and production bases The Company created job opportunities for
maintained a 100% environmental compli- 2604 people including 519 overseas
ance rate. employees and 1122 female employees.ISO 14067 carbon footprint verification was Established the "MGI Tech Technology
completed for nine new core products. Innovation Fund"
In 2024 carbon emissions of pilot laboratories
were reduced by 18% and reagent loss rate No global major workplace accidents
dropped by 22%; occurred
Certified as a "demonstration base for green The global occupational disease incidence
technology application" by the National rate is 0
Development and Reform Commission.
25 26Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Lead ing Life Science Innovation
MGI Tech consistently upholds the vision of "Leading Life Science Innovation" and continuously
optimizes gene sequencing and bioinformatics tools thereby offering efficient and precise research
support to scientists globally. We assist researchers in batch processing and systematically study-
ing samples across multiple dimensions including DNA cells and tissues to deeply explore the
complexity and heterogeneity of cellular stemness and the mechanisms underlying cell fate editing.Meanwhile we are dedicated to offering cutting-edge tools that boast ultra-high throughput
ultra-low cost and intelligent integration to global users. This empowers the advancement of the life
sciences field through technological innovation enhances scientific research capabilities compre-
hensively and leads life sciences and technology to new heights.
2035 Plan
Participate in the early initiation and execution of 60 global large population
cohort projects.Create 10 typical applications.Cooperate with 1500 medical institutions.Launch an information sharing platform for the cohesive development of
industry ecosystem.Sign contracts with 100 strategic partners.Support the "Million Microbiome" research program with over 200000 sample
sequencing.Keep improving the coverage of primary public health testing reach a cover-
age rate of 80% and further reduce food safety testing costs by 20% by 2025.This chapter responds to SDG goals
27 28Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Enhancing the Accessibility of Genomics
MGI Tech leverages technological innovation to promote the popularization of genomics illuminating life sciences across
diverse fields. By lowering costs expanding across regions and adapting to extreme environments we are turning Case Organoid Research and Technology have Opened a New Window into Medicine
genomics from a resource limited to a few institutions into a fundamental tool that serves the public—especially in spatio-
temporal and cellular genomics—offering new hope for health and environmental protection.In November 2024 Tsinghua University adopted the spatiotemporal
By the end of 2024 users from 75 countries and regions in six continents of the world had published over 10000 high-quali- transcriptomics FF product scheme launched LOSRT based on
ty articles based on the MGI Tech DNBSEQ sequencing platform involving 5406 species under research. In 2024 alone DNBSEQ-Tx sequencer and Stereo-seq technology and constructed
3398 articles were generated based on the MGI Tech sequencing platform. the world's first organoid-spatiotemporal combined atlas. This
pioneering study elucidates the spatial distribution and interactions
of diverse cell types within laminated pulmonary organoids offering
crucial quantitative metrics for organoid research and having signif-
icant implications for precision medicine and pharmaceutical devel-
MGI has facilitated the initial launch and execution of 49 large population cohort
opment. As a leader in life science innovation we have supported the
projects worldwide. Internationally the Company has contributed to the initiation of
generation of scientific research achievements and helped our
Indonesia's first National Genome Program Thailand's Genomics - Thailand
Population partners to publish research findings in the prestigious journal PNAS Integrated Action Plan and Brazil's national genome program. In China MGI has
Genomics thereby sharing this significant discovery with the global research supported several large-scale cohort studies involving tens of thousands of partic-
community and paving the way for new avenues in disease research
ipants including the China Metabolic Analytics Project (ChinaMAP) and the
and pharmaceutical development.pioneering STROMICS Genome Study which involves deep whole-genome
sequencing and analysis of 10000 Chinese patients with ischemic stroke.The development of single-cell sequencing technology has empowered researchers Conducting Scientific Investigations on Mt. Everest Spatiotemporal Omics Can Help
to analyze information such as gene expression epigenetic modifications and genet- Case Protect Ecological Diversity
ic variations at the single-cell level significantly enhancing our understanding of
cellular heterogeneity and providing crucial tools for cell atlas research.Cell Omics Research in the Mt. Everest region is vital for understanding global climate change and conserving biodiversity. The DNBelab C4 single-cell library preparation sequencing platform independently However the harsh conditions—such as high altitude and low air pressure—present significant challenges to
developed by MGI Tech has the advantages such as high-throughput capabilities scientific studies in the region. In May 2024 MGI Tech participated in and supported the project of scientific
broad sample compatibility and cost-effectiveness. It enables million-scale investigations on Mt. Everest and established the "Mt. Everest Laboratory" at an altitude of 5200 meters on the
single-cell transcriptomics library sequencing as well as data analysis and mining. northern slope exploring the mysteries of high-altitude life with the power of technology. The team deployed the
The platform has been extensively applied in various research fields including tissue
regeneration neuroscience mammalian mapping and studies on tumor genesis DNBSEQ-G99 and DNBSEQ-E25 gene sequencers and successful-
mechanisms. ly completed testing confirming their capability to quickly and
efficiently analyze sample information at high-altitude locations.This means that in the future scientific research teams will be
able to decode information from relevant samples directly
on-site in the shortest possible time minimizing the effects of
factors like sample degradation. This will speed up research on
critical scientific issues such as adaptation mechanisms of
Spatiotemporal omics technology can elucidate the specific functions of the genes
plateau organisms and paleoenvironmental changes while also
and cells in individual development and disease progression from both temporal and
Spatial providing vital support for biodiversity conservation and studies spatial dimensions thereby achieving high-throughput and high-precision
Omics on human adaptability. This not only enhances the accessibility multi-omics information capture meeting the needs of modern pathology for
of scientific research but also pushes the boundaries of human
morphology as well as qualitative quantitative and localized identification of key
understanding of life and the environment on Earth.biomarkers.
29 30Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Empowering a Healthy Future
MGI Tech is dedicated to advancing science and technology to benefit more people bridging gaps between laboratory Case Promoting Innovation in Clinical Testing
innovations in genomics and real-world applications and empowering a healthy future. We provide efficient and accurate
technical support for disease diagnosis monitoring and medical transformation through a comprehensive layout of
precision medicine public health prevention and control and personal health protection and promote sustained innova- On January 10 2025 the National Medical Products Administration (NMPA) granted the Medical Device Regis-
tion in the medical field. Moreover we are committed to training future talents in the field of life sciences and contributing tration (Guo Xie Zhu Zhun 20253220056) to the MGI Gene Sequencer DNBSEQ-E25 (hereinafter referred to as
to accelerated full health coverage from prevention to treatment. "E25") the world's first gene sequencer based on the principle of self-luminescent sequencing biochemistry. This
approval enables the E25 to be used in clinical settings within the domestic market. The DNBSEQ-E25 is a com-
pact gene sequencer that utilizes MGI Tech's DNBSEQ core sequencing technology employing a novel self-lumi-
Promoting Precision Diagnosis and Treatment nescent biochemistry principle. It occupies only 0.1m2 of table area and is compatible with sequencing
consumables of different read lengths. Sequencing data can be generated within 5 to 20 hours. Furthermore
With the rapid advancement of human genome sequencing technology the swift development of biomedical analysis the DNBelab-D4 a totally-enclosed automated library preparation platform that pairs well with the
techniques and the increasing sophistication of big data analysis tools we are entering a new era of healthcare known as DNBSEQ-E25 has been approved by the NMPA and is now being used in several hospitals. The "minimalist com-
precision medicine. Leveraging the advantages of DNBSEQ technology MGI Tech is always committed to meeting needs bination" of DNBelab-D4 paired with DNBSEQ-E25 enables one-stop solution for automating library preparation
of various applications including whole genome sequencing targeted sequencing and metagenomic sequencing. This and sequencing. This setup simplifies the detection process and reduces operational complexity making it ideal
commitment provides more automated convenient and efficient core tools for the monitoring early warning diagnosis for clinical testing with an "out-of-the-box" approach.and management of public health events.Case Improving the Capacity of Primary Medical Services
Science and Technology Foster Health Building a Community of Life:
Case MGI Tech Supports Brazil's Medical Upgrading The MGI Tech remote ultrasound robot MGIUS-R3 is the world's first ultrasound device that does not have to be
operated by a professional physician on the patient side and has real-time diagnostic capabilities. Its
MGI Tech is committed to its corporate mission of "benefiting the people and enhancing global health through high-sensitivity probe and robotic arm design with six degrees of freedom can simulate expert gestures and
technology" and it partners with the Sabin Group in Brazil to play a pivotal role in the country's healthcare devel- achieve precise ultrasound examinations. The successful application of this technology not only provides timely
opment. This collaboration aims to harness technological innovation to enhance local healthcare standards medical services to patients in remote areas but also opens up a new direction for the development of ultra-
and build a shared future for human life. Through strategic collaboration MGI Tech not only equips Sabin Group sound medicine.with cutting-edge gene sequencing technology and equipment thereby substantially enhancing its testing
capabilities and laboratory operational efficiency but also assists Sabin Group in expanding the application of
advanced gene sequencing technology. This enables the provision of personalized and precise diagnostic and
treatment plans for Brazilian patients. Xiong Yi Executive
President of Luohu
Strengthening localized service capabilities to ensure District People's Hospital
steady development. MGI Tech has launched a Custom- operated the remote
ultrasound robot
er Experience Center in Brazil to enhance its localized MGIUS-R3 developed
service capabilities and has also formed strategic independently by MGI
partnerships with leading industry players like Dasa to Tech personally and
collaboratively advance precision medicine in Brazil established remote
particularly in areas such as cancer and rare diseases. ultrasound connections
with Indonesia and Aba
This collaboration aims to provide more precise diag- Tibetan-Qiang Autono-
nostic means and effectively improve patients' well-be- mous Prefecture in
ing. MGI Tech leverages technological innovation to Sichuan Province to
enhance health while actively fulfilling corporate social conduct ultrasound
responsibility. The Company assists in upgrading Brazil's examinations for local
practical demonstration
healthcare infrastructure contributes Chinese expertise MGI sequencer and automation equipment have volunteers.to the global health sector and harmoniously aligns been installed in Sabin laboratory
commercial value with social value.
31 32Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Case Coping with Medical Challenges in Extreme Environments Case The World's Largest Multi-omics Study on Colorectal Cancer
Personal medical care can hardly be realized in extreme environments such as Mount Everest exploration polar Based on MGI Tech's DNBSEQ sequencing platform Sweden's Uppsala University and other institutions performed
scientific research and seabed exploration. The wireless intelligent handheld ultrasound system developed by a whole genome and transcriptome sequencing analysis on 1063 colorectal cancer samples (including 782
MGI Tech (portable weighing 300g only) can monitor the carotid artery thyroid gland breasts abdomen and ones of colon cancer and 281 ones of rectal cancer of which 21% (223 cases) had microsatellite unstable tumors
other parts in real time and transmit data to mobile phones or PCs through Bluetooth communication for AI-as- (a specific type of colorectal cancer)) from the well-known Swedish cancer sample and database U-CAN
sisted diagnosis. cohort. 96 significant mutant genes were identified in which 24 were newly discovered potential driver genes
and the driver genes related to the WNT EGFR and TGF-β pathways were correlated significantly with colorectal
In 2024 mountaineers at an 8300-meter-high campsite away established online connection with the head of
cancer survival.the ultrasound department of a hospital 4000 kilometers away in Beijing a clinical physician in Aba Sichuan
2500 kilometers away and a specialist in Shenzhen 4000 kilometers away. Under the joint guidance of remote
experts a real-time ultrasound scan of the carotid artery was performed and consultation was realized
successfully in order to explore impacts of carotid hemodynamics in extreme high-altitude areas jointly."TOP OF THE WORLD"
Birth of the first ultrasound image
The Story behind the Birth of the At the summit of Mount Everest the
mountaineers successfully completed carotid
artery ultrasound image acquisition and data
First Ultrasound Image measurement using a handheld ultrasound device that weighs only 300 grams.Launched the formal sprin
to the top
The mountaineers completed a
Conducted field-testing real-time ultrasound scan of the carotid artery
and debugging Achieved multi-party real-time remote
Collected clinical research data medical consultation at an altitude of 8300 meters
*Carotid artery and TCD hemodynamic
indicators
Developed the high-altitude *Pulmonary artery pressure related cardiac indicators
simulation testing plan
Scientific research objective: To explore the
physiological mechanisms under extreme
conditions
▼
Feasibility of imaging technology and tools:
NMR × CT × ultrasound √
▼
Feasibility of ultrasound imaging technology and
tools:
Micro-Vu × ultrasonic mobile vehicle √ handheld
ultrasonic device √ The world's first ultrasound image from the top of the world
▼
Wireless intelligent handheld ultrasound device Carotid artery measurement blood flow rate
Wireless intelligent handheld blood flow velocity and heart rate dataCarried out clinical training on ultrasound devices
ultrasound device and conducted simulation tests in high-altitude
environments
Intelligent and Remote
portable consultation
April-May 2024
December 2023 - April 2024 May 20 2024 May 21 2024
Expanded the temporal and spatial boundaries of
ultrasound and extended the configuration of liberalized Technical support from clinical experts in Beijing clinical doctors in Aba Prefecture
scenarios of the radius of expert services Sichuan Province and the headquarters in Shenzhen
Remote Ultrasound MGIUS-R3
Expanded the temporal and spatial
boundaries of ultrasound and extended
the configuration of liberalized scenarios
of the radius of expert services
33 34Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Public Health Prevention and Control
In face of challenges in the field of global public health prevention and control pandemics of major infectious diseases
such as tuberculosis COVID-19 monkey pox and AIDS pose serious threats to public health and safety. In addition safety
emergencies such as mass diseases of unknown causes food poisoning and occupational poisoning also threaten public
health. Genomic research provides important information for the prevention and monitoring of pandemics and is an
important basis for public health decision-making and an important tool for public health workers to identify new patho-
gens and monitor pandemics. It is also applied extensively to drug resistance mechanisms of pathogenic microorgan-
isms vaccine development and other directions. In the field of public health MGI Tech has created a full-process product
portfolio for applications such as pathogen metagenomic sequencing targeted sequencing and whole genome
sequencing. Based on the ATOPlex multiplex PCR database building platform the Company has launched ready-to-use
full-process sequencing combination products for COVID-19 influenza A/B monkey pox dengue fever and many other
infectious diseases. Two recently launched combined products for targeted amplification and sequencing targeting the
HIV virus and Mycobacterium tuberculosis cover the whole process of database building sequencing and analysis for the
HIV virus Mycobacterium tuberculosis and their drug-resistant gene testing and contribute to public health prevention
and control.HIV Drug Resistance Monitoring Serves as a Technological Safeguard for the Line of
Case Defense for Health Case Identification of Alien Vector Organisms
In 2024 the Chinese Center for Disease Control and Prevention utilized DNBSEQ-G400 and CycloneSEQ-WT02 to In 2024 the Technical Center of the Zhongshan Port Customs identified one male
sequence the near full-length genome (NFLG) of HIV and identified a novel branch CRF172_0755.By combining the fly in a submitted sample as Neomyia indica using the morphological identifica-
CycloneSEQ nanopore sequencer with the DNBSEQ high-throughput sequencer the research team assembled a tion method and the DNA barcode technology based on DNBSEQ-G99.It is report-
complete near full-length genome (NFLG) of HIV providing reliable methodological support for identifying HIV ed that flies are among important targets for vector organism monitoring and
super-infections or novel recombinant viruses. control at customs ports. Neomyia indica identified this time is a species in Genus
As of now the HIV-1 drug-resistance sequencing combination product related equipment manufactured by MGI Tech Neomyia of Subfamily Muscinae and is found mainly in East and Southeast Asia.has been gradually introduced into the Chinese Center for Disease Control and Prevention as well as multiple local After being contaminated in feces this species may carry various viruses bacte-
centers for disease control and prevention in Guangdong Guangxi Sichuan Guizhou Shanghai and other regions. As ria and parasites to contaminate food thereby resulting in human infection and
a leader in life science innovation the Company has initiated the development of HIV full-length genome sequencing posing a threat to human health.combination products utilizing the CycloneSEQ platform. This approach leverages the "long read length" advantages Based on its port supervision functions the Zhongshan Port Customs strengthens
of nanopore gene sequencers to enhance the accurate identification of diverse subtypes and quasi-species offering risk analysis and judgment actively carries out targeted health quarantine and
a deeper insight into HIV genetic diversity and viral variation. Consequently it provides a more sensitive accurate inspection and further deepens the onsite joint monitoring mode of "port
and comprehensive tool for identifying highly reactive HIV strains. customs + laboratory experts" to prevent risks of cross-border transmission of
vector-borne infectious diseases and pandemics effectively. In 2024 the
customs intercepted 145 batches of imported vector organisms such as rodents
cockroaches and flies totaling 2132 individuals.Participating in the Formulation of the Group Standard General Technical Requirements for
Case Monitoring SARS-CoV-2 Variants from Wastewater Based on High-throughput Sequencing
Technology of the Guangdong-Hong Kong-Macao Greater Bay Area
This standard specifies the general technical requirements for SARS-CoV-2 variant monitoring in wastewater
samples based on high-throughput sequencing technology and is applicable to the whole process of SARS-CoV-2
enrichment and concentration nucleic acid extraction high-throughput sequencing and data analysis in wastewater
samples. This method can master the dynamic distribution and epidemic characteristics of SARS-CoV-2 variants in
urban population quickly and effectively. MGI Tech participated in the formulation of this standard in order to provide
scientific and normative technical guidance for SARS-CoV-2 variant monitoring in wastewater samples through
HIV-1 CRF Branch CRF172 0755 Near Full-length Genome high-throughput sequencing technology thereby mastering virus variation dynamics quickly and precisely and
providing strong support for public health prevention and control.
35 36Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Protecting Personal Health Driving Sustainable Practices
MGI Tech develop multi-omics tools for personal health boost the high-quality and low-cost generation of multidimen-
sional data such as genomics radiomics metabolomics brain omics and wearable devices promote the further popular- Sustainable Agricultural Practices
ization of omics technology and support individualized health management.Faced with challenges of global food safety and sustainable food systems MGI Tech promotes the extensive application
For genomic tools MGI Tech adheres to the concept of universal access to genetic technology and keeps reducing costs of gene sequencing technology to agriculture actively and drives global agricultural innovation and sustainability. We
of personal genomic monitoring and promoting clinical use and health monitoring. By focusing on the early screening of improve the stress resistance breeding efficiency and yield of crops and livestock through high-throughput sequencing
genetic testing genetic risk prediction individualized medication guidance and other fields MGI Tech provides users with and synthetic biology technologies thereby supporting the transformation and sustainable development of modern
more accurate and comprehensive genetic health solutions through advanced sequencing technologies and big data agriculture and providing technological support for global food accessibility and safety.analysis.For radiomic tools MGI Tech has developed innovative technologies such as remote ultrasound intelligent ultrasound and
handheld ultrasound with focus on ultrasound equipment to improve the convenience and accuracy of medical imaging
diagnosis. Through AI algorithms and cloud collaboration MGI Tech realizes the intelligent analysis and remote consulta- Case MGI Tech and Brazilian GDM Partner to Boost Crop Yields through Innovative Technology
tion of ultrasound images and provides more efficient imaging diagnosis solutions for primary healthcare and personal
health management. In 2024 MGI Tech partnered with Brazilian GDM to utilize the DNBSEQ-T7 sequencer to support soybean breeding
thereby speeding up genetic analysis and reducing the breeding cycle. As a leader in life science tools we bring
genomics from the laboratory to the field helping the world's top soybean cultivator develop high-yielding and
stress-resistant varieties. This not only boosts crop efficiency but also lays the groundwork for sustainable develop-
ment of Brazil's tropical ecosystems. Technology is like a well-timed rain nurturing farmers' hopes and bolstering
Case Bloomics Disposable Peripheral Blood Sampling System global food security. We work closely alongside GDM to cultivate the seeds of science across South America. The
growth of each soybean plant is a testament to the power of life sciences and technology. This effort has brought
fresh harvests across borders warming the dining tables of countless families.In 2024 the Company officially released the Bloomics disposable periph-
eral blood sampling system – the first autonomous painless blood
sampling system in China and opened booking applications along. Based Case Empowering Assembly of the African Wild Rice Genome
on the self-developed patented micro-needle (MN) array technology
Bloomics revolutionizes blood sampling experiences and makes blood Rice is an important global food crop and crucial for food security. As a wild relative of rice growing in the tropical regions
sampling comfortable convenient and friendly. of West Africa Oryza longistaminata (also known as "African wild rice") offers valuable genetic resources. MGI Research
Institute and Yunnan University have successfully assembled a 343 Mb telomere-to-telomere (T2T) genome using the
CycloneSEQ nanopore sequencing platform. This genome spans the telomeres and centromeres of all chromosomes
Innovation revolution Ease of operation achieving significantly enhanced accuracy and completeness.The micro-needle array technology overturns Breaking traditions and realizing enjoyable This study has revealed structural variations between cultivated rice and Oryza longistaminata laying the foundation for
conventional blood sampling methods. blood sampling anytime and anywhere future breeding and research into genes linked to rice phenotype traits. By pinpointing coding genes repetitive sequenc-
es and transcription factors new genomic resources offer crucial support for African rice research and evolution helping
tackle global food security challenges.Authoritative certification Safety and comfort
Granted an NMPA Class II medical device Reducing cross infection risks with over Case Low-depth Sequencing Technology Supports Innovation in Livestock and Poultry Breeding
registration certificate 90% of users reporting almost no pain
Prof. Hu Xiaoxiang's team from China Agricultural University developed a full set of low-depth sequencing analysis
processes for livestock and poultry based on the MGI Tech DNBSEQ-G400 sequencing platform and analyzed the genetic
structure of important economic traits in Duroc pigs successfully. The research findings were published in the internation-
al journal Gigascience (impact factor: 11.8).Introduction This study established a BaseVar-Stitch genotyping process suitable for low-depth sequencing for the first time and obtained a high-density SNP marker set (11.7M) of the largest population of Duroc pigs (2869) at extremely low costs
with typing accuracy of over 99%.Compared to traditional methods this process improves efficiency and accuracy
Dr. Yang Meng Vice President of MGI Tech said "Bloomics is inspired by Mr. Wang (Wang Jian Chairman of MGI Tech) significantly through a large-sample non-parametric self-filling strategy.who observed blood-sucking leeches outdoors over a decade ago. Convenient and painless blood sampling is the first According to Prof. Hu low-depth resequencing technology has broad applicability not only for livestock and poultry but
step in scientific research and health management. This product is almost painless as it utilizes a complex mechanical also for the breeding of various species such as crops and aquatic animals and is expected to play a key role in the
structure for the rapid insertion and rebound of the metal micro-needle array and revolutionizes blood sampling experi- process of agricultural modernization.ences by applying negative pressure to extract peripheral blood independently using commercialized vacuum blood This study provides technical support for the development goals of the modern seed industry in the 14th Five-Year Plan.sampling tubes without the need for professional medical personnel. MGI Tech is always committed to creating core tools Through the high-throughput sequencing and whole genome selection technology platform it promotes basic research
for life sciences and will continue to develop innovative sampling methods to meet sampling needs of frequent multi-om- on breeding and the industrialization of biological breeding and lays a solid foundation for cultivating excellent varieties
ics testing for everyone." with independent intellectual property rights.
37 38Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Environmental Monitoring and Protection
MGI Tech's genomics technology is increasingly crucial in ecological conservation and environmental monitoring. By
leveraging environmental DNA (eDNA) analysis technology we monitor biodiversity changes in ecosystems supporting Case Biodiversity Conservation of Mangrove Forests in Thailand
the conservation of endangered species and controlling environmental pollution. For instance in several nature reserves
across China our sequencing technology enables scientists to track changes in microbial water communities pinpoint
potential pollution sources and create targeted ecological restoration plans. Furthermore our gene sequencing platform Thailand's mangrove ecosystem is under severe threat with over 60% of its mangroves having been lost to
is utilized to investigate the effects of climate change on marine ecosystems which aids in the development of more human activities and climate change. Mangroves serve as a vital natural barrier for coastal communities while
effective conservation strategies. By promoting the application of genetic technology in environmental science we also supporting the livelihoods of fishermen and maintaining crucial biodiversity and carbon storage functions.support green and low-carbon development providing a scientific foundation for the sustainable management of global To address this crisis Thailand and China have established a joint mangrove protection demonstration area
ecosystems. and are conducting conservation efforts through genomic research.The National Center for Genetic Engineering and Biotechnology (BIOTEC) in Thailand has collaborated with MGI
Tech to conduct in-depth research on the genetic diversity of mangroves using DNBSEQ-G400RS sequencer
and RAD-seq technology. This technology enables rapid identification of genetic markers and the creation of a
Case Fish Diversity in River Basins reference genome database for various species. Currently a database has been successfully established for
15 mangrove species.
The research team pointed out that understanding the genetic
Fish diversity is an important health indicator for aquatic ecosystems but due to factors such as water pollution differences among mangroves can help develop more effective
overfishing climate change and invasive species global fish biodiversity is declining sharply. Effective investigation conservation strategies ensuring the long-term sustainability of
and monitoring methods are required to conserve fish diversity. Traditional fish monitoring methods have draw- these ecosystems. The study also shed light on how mangroves
backs such as habitat destruction damage to target individuals and low capture rates for rare and endangered adapt to environmental challenges like sea level rise and
species. Therefore a new nondestructive and efficient biological investigation method has been developed namely changes in salinity offering a crucial theoretical foundation for
the environmental DNA (eDNA) meta-barcoding technology. This technology involves PCR-amplifying eDNA using protecting and restoring biodiversity.specific DNA barcode primers sequencing PCR products using a high-throughput sequencing platform and
obtaining operational taxonomic units (OTUs) through bioinformatics analysis which are then compared with the Amidst the escalating global ecological challenges this study
DNA barcode database to monitor target organisms. serves as a model for advancing mangrove conservation efforts
in Southeast Asia highlighting the crucial role of genetic
This study was conducted in the Danjiang River Basin in Shaanxi Province China and identified 59 fish species from technology in environmental protection and contributing to the
eight orders 19 families and 40 genera. Orders Cypriniformes and Perciformes are the main fish populations in attainment of global sustainable development goals.which Family Cyprinidae accounted for 50.85% of all fish species. Eight rare and two alien fish species were also
discovered in this study. Through analysis and comparison with historical data it was found that the fish richness
identified using the eDNA meta-barcoding technology based on the DNBSEQ-G99 platform was significantly higher
than that of fish captured in traditional cages. Temperature pH and redox potential are the main environmental
factors affecting the spatial distribution of fish communities.
39 40Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Case Marine Microbial Metagenomic Database Case Study on Microbial Ecosystems and Their Ecological Driving Forces in Deep-sea Sediments
A joint research team was formed by institutions such as Shandong University University of East Anglia in the UK The research team from Shanghai Jiao Tong University explored the Mariana Trench the Yap Trench and the Philip-
Ocean University of China Xiamen University and University of Copenhagen in Denmark. After five years of work this pine Sea Basin at depths ranging from 6000 to 11000 meters within the hadal extreme environment where
joint research team conducted sequencing based on the DNBSEQ platform and reanalyzed nearly 240 Tb of publicly pressures reach up to 1100 atmospheres. The expedition marked the first human exploration of the deepest point in
available marine microbiome metagenomic data and created the Global Ocean Microbiome Catalog (GOMC). This the Yap Trench among others. During the mission the researchers collected over a thousand samples including
database contains over 43100 marine microbiome genomes and 2.458 billion gene sequences. It covers a wide
variety of marine ecosystems ranging from Antarctica to the Arctic from nearshore to offshore and deep-sea and water sediments macroorganisms and rocks and then they performed metagenomic sequencing on the collected
from the surface down to hadal zones tens of thousands of meters deep. This method overcomes the challenging sediment samples and identified 7564 prokaryotic microbial species 89.4% of which were previously unreported
issue that most environmental microorganisms cannot be cultured artificially. Like unlocking the "blind box" of new species. This study found that environmental selection pressures like high hydrostatic pressure low tempera-
metagenomics it lays the groundwork for exploring and harnessing the functional potential of marine microbial tures and limited nutrients play a crucial role in shaping deep-sea
"dark matter". This study significantly broadens our understanding of marine microbial diversity and refreshes our microbial communities. This study also revealed multiple mecha-
understanding of the upper limit of the genome size of marine prokaryotic microorganisms. It also reveals that the nisms by which deep-sea microorganisms adapt to extreme
hypoxic marine environment provides selection pressure for the adaptive evolution of large genome bacteria. Addi- environments such as enhanced antioxidant mechanisms and
tionally this study analyzes the biogeographical distribution patterns of global marine microbial communities and accumulation of intracellular compatible solutes. These mecha-
provides a new perspective for understanding the genetic connectivity of microorganisms in different marine nisms are common across various biological domains indicating
environments.a universal physiological response to ultra-high pressure condi-
tions. The database created by this study offers valuable resourc-
es for future research on the adaptation of deep-sea microorgan-
Sample Type isms and holds promising applications in biotechnology and
Surface
Seawater environmental science. This project used 16S rRNA gene amplicon
Upper-layer
Seawater sequencing and metagenome sequencing based on the DNBSEQ
Middle-layer
Seawater platform.Deep
Seawater
Sediments
Co-epiphytes Study on the Evolutionary and Genetic Adaptability
Case
Others of Fish to Deep-sea Environments
Number of
Genomes The team of the Institute of Deep-sea Science and Engineering (IDSSE) of the Chinese Academy of Sciences carried
out extensive sampling across the vast ocean area stretching from the Western Pacific to the Central Indian Ocean.They sequenced and analyzed the collected deep-sea fish specimens and generated genome assemblies for 12
species including 11 deep-sea fish species. Using comparative genomics they analyzed the genetic variation and
community structure of fish hosts and photosynthetic symbionts across different environmental gradients and
revealed multiple mechanisms by which deep-sea fish adapt to extreme environments. For example the research
team found a highly conserved convergent mutation in the rtf1 gene of most deep-sea fish living below 3000
In this study the research team identified 36 novel CRISPR-Cas9 gene editing systems and discovered a novel Cas9 meters. In vitro experiments have shown that this mutation can improve transcription efficiency which could be an
editing system (Om1Cas9) with potential application value which will help China have greater independence and advantageous adaptation to deep-sea environments. The research team also challenged the previous hypothesis
more options in utilizing gene editing tools. Meanwhile the research team also identified 117 novel antimicrobial that TMAO content is linearly correlated with depth. While fish TMAO levels rise with increasing water depth from 0
peptides and found through biosynthesis and experimental verification that 10 of them exhibit strong antimicrobial to 6000 meters this trend does not continue at water depths exceeding 6000 meters. Additionally the research
activity and broad-spectrum antimicrobial effects. In addition researchers discovered highly active novel halophilic team detected high concentrations of persistent organic pollutants such as polychlorinated biphenyls (PCBs) in fish
PET plastic degrading enzymes from three deep-sea sources which achieved a PET film degradation rate of 83%
within three days 44 times higher than the reported IsPETase plastic degrading enzyme activity. The use of PET from the Mariana Trench indicating that these synthetic pollutants have penetrated into the deepest trenches on
biocatalysis to degrade regenerate and upgrade PET plastics can effectively solve plastic pollution and improve Earth. This study not only reshapes our understanding of the limits of deep-sea life but also sets a new benchmark
environmental and ecological benefits. This has become a hot topic in global scientific research and industrial for extreme environmental biology by integrating interdisciplinary technologies. The findings of this study provide
applications. The new PET plastic degrading enzyme discovered in this study may help China achieve green key scientific basis for deep-sea ecological conservation biomedicine (including the use of high-pressure adaptive
low-carbon and sustainable utilization of PET plastic reducing the plastic manufacturing industry's dependence on genes) and climate change research. This project used DNA barcode sequencing and transcriptome sequencing
petroleum and carbon emissions. based on the DNBSEQ-G400 platform.
41 42Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Genetic Education and Tech-driven Archaeology
Thanks to the rapid development of life sciences young people now have more opportunities than ever to explore science.Case Sediment DNA Reveals Adelie Penguin Population and Ecology in the Ross Sea in Antarctica Popularizing genetic science is not only crucial for spreading scientific knowledge but also plays a key role in inspiring
young people's enthusiasm for science and nurturing the next generation of researchers. MGI Tech is dedicated to
advancing innovation in life science education and actively partners with universities to integrate state-of-the-art gene
This study analyzed 156 sediment samples from six active and four abandoned Adelie penguin habitats along
sequencing technology into their teaching programs creating a more engaging and interactive science education
Ross Island and the East Victoria coastline which spanned 6000 years. These sediment samples were subject-
ecosystem.ed to metagenomic sequencing based on the DNBSEQ platform using the least common ancestor (LCA) analy-
sis method to identify DNA sequences of animals plants fungi and microorganisms. This study revealed popu- In 2024 MGI Tech further strengthened its partnerships with domestic universities and advanced innovation in genomics
lation changes of Adelie penguins including their distribution and population in different historical periods. In education by offering cutting-edge gene sequencing platforms and technical support. We have supported numerous
addition the presence of other local species was also detected including various birds seals and invertebrates. universities including Shanghai Jiao Tong University Southern University of Science and Technology X-Institute Donghua
For example DNAs from southern elephant seals were discovered in Cape Hallett indicating that this place was University Guizhou Medical University Tsinghua University University of Chinese Academy of Sciences University of
once their breeding ground. This study opens a window into the evolution of Antarctic ecosystems for tens of Science and Technology of China Fudan University and Dalian University of Technology and partnered with them to offer
thousands of years through sedimentary DNA technology. Thus it not only deepens our understanding of adap- genomics-related courses at various levels—from undergraduate to graduate—covering fields such as bioinformatics
tation strategies of Adelie penguins but also emphasizes the great potential of interdisciplinary methods in gene sequencing experiments and environmental DNA research. The launch of these collaborative courses brings
analyzing the complex relationship of "climate – ecology – evolution". This achievement provides a key scientific state-of-the-art genetic technology into the classrooms strengthens students' hands-on skills and establishes a strong
basis for biodiversity conservation in Antarctica and global change biology. foundation for nurturing future talent in the life sciences fully reflecting the positive role of MGI Tech in promoting the
popularization and development of genomics education in China.Case MGI Tech and BRIN Jointly Build an Intelligent Laboratory
On September 6 2024 MGI Tech and Indonesia's National Research and Innovation Agency (BRIN) entered into
a collaborative agreement at the International Tropical Seaweed Research Center. This partnership aims to
establish a Joint Intelligent Laboratory (iLab) which will focus on advancing seaweed research and conserving
marine resources. The seaweed economy plays a vital role in Indonesia's ecological and economic systems
and preserving seaweed diversity has become a cornerstone of sustainable development. This collaboration
will take place on Lombok Island with the goal of boosting the storage digitization and R&D capabilities for
seaweed resources.University of Science University of Chinese
and Technology of China Academy of Sciences X-Institute
By introducing advanced gene sequencing
technology MGI Tech has provided strong support
for seaweed research. This initiative underscores
the Company's enduring commitment to scientific
research and development supports the advance-
ment of marine biodiversity conservation in University-wide elective course Bioinformatics Experiment - Through the fun eDNA fish
Indonesia and helps drive progress toward Decoding Life Information From Individual Genome monitoring combination we
achieving global sustainable development goals. Decoding to Population supported its environmental
Genetic Analysis an DNA research and helped
experimental elective course students deepen their
for the post graduates of the scientific understanding of
School of Life Sciences ecosystems.
43 44Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
MGI Tech is dedicated to advancing innovation in life science education and nurturing talents with expertise in applying
cutting-edge technologies. The growth of these talents and the popularization of cutting-edge technologies are also
案例 Supporting Life Science Education at the Tsinghua Shenzhen International Graduate School opening up new territories for scientific research. Among numerous emerging interdisciplinary fields tech-driven archae-
ology is increasingly demonstrating its unique value.In September 2024 a course named the Interdisciplinary Innovation Practice Course - The Digital Logic of Life Using cutting-edge technologies like genome sequencing and skull CT scanning scientists can not only recreate the
at the Tsinghua Shenzhen International Graduate School was launched. MGI Tech provided the DNBSEQ-E25 appearances of historical figures but also uncover the intricate historical processes of integration among different ethnic
sequencer along with technical support for this course. Starting from obtaining their own samples such support groups. This interdisciplinary research approach is gaining widespread attention from the global academic community
enabled students to comprehensively apply molecular biology experimental skills such as DNA extraction with an increasing number of international institutions adopting similar diverse interdisciplinary research models to
library construction and sequencing.With the support of solutions provided by MGI Tech students can efficiently explore the origins and evolution of human civilization. MGI Tech supports tech-driven archaeology with the language of
conduct quality assessments on sequencing data detect variants perform big data association analyses and science telling long forgotten historical stories and contributing China's strength to global humanities research.mining carry out traceability analyses calculate genetic distances assess multi-gene risks and construct
evolutionary trees. They can interpret the data and unravel the numerous genetic codes hidden in genes that
make human individuals unique. Additionally they are guided to flexibly apply what they have learned in the
course to cutting-edge real-world research projects of their own choice.This course has been included in the
student training program of the Tsinghua Shenzhen International Graduate School.Case Tech-driven Archaeology and Facial Reconstruction of an Ancient Figure
Fudan University conducted a study on tech-driven
archaeology by extracting ancient DNA from the
remains of Emperor Wu of the Northern Zhou Dynasty.Based on a probe capture scheme the research team
created a database. Employing sequencing platforms
like the MGI DNBSEQ-G99 they successfully obtained
low-coverage whole-genome data of Emperor Wu
including information on numerous SNP loci across his
genome. By integrating knowledge from multiple disci-
plines such as history and archaeology as well as
craniofacial reconstruction techniques they provided
In addition to promoting genomics education at the university level MGI Tech also actively participates in and supports compelling evidence revealing Emperor Wu's facial
features possible health conditions during his lifetime
life science popularization and talent training programs for young people. MGI Tech is supporting the Mammoth Interna- and insights into his ethnic origin.tional Contest on Omics Sciences (MICOS) which will introduce a youth science popularization sub-contest in 2025.Leveraging advanced technologies from MGI Tech including the DNBSEQ-E25 gene sequencer this new contest will The research team used skull CT scanning technology
feature environmental DNA sequencing encouraging young participants to apply cutting-edge technologies to solve to perform a preliminary facial reconstruction of Emper-
real-world problems. or Wu. They also analyzed gene loci related to his hair
skin and eye pigmentation creating a "facial recon-
MGI Tech inspires young people's struction" of Emperor Wu more than 1000 years after his
interest in life sciences and death. The reconstruction results show that Yuwen Yong
nurtures their scientific curiosity Emperor Wu of the Northern Zhou Dynasty had black
and innovative spirit by engaging hair yellow skin and brown eyes typical of Northeast
in and supporting activities like and East Asian features.MICOS. Through these efforts the
Company brings cutting-edge
gene sequencing technology
and scientific concepts to a
broader youth audience. MGI
Tech is dedicated to giving
young people greater opportuni-
ties to learn and apply genomics
technology supporting them in
making steady progress on their
journey of scientific discovery.
45 46Leading Life Science
Message From About MGI Tech Sustainable Development Innovation Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform for Future Healthcare Governance Partner Environment
Jointly Building an Industrial Ecosystem
As a pioneer in the upstream of China's gene sequencing industry MGI Tech has established robust and diverse industrial MGI Tech places great emphasis on synchronizing research with standardization efforts. To this end it has established a
ecological cooperation with its three core product lines spanning the entire industrial chain from upstream to down- "Standardization Management Committee" to develop robust management systems and processes for standardization
stream. This cooperation promotes the application of genomics across various fields and the transformation of research thereby advancing the construction of a globally leading standardization framework. Addressing the lack of standards in
achievements. The Company consistently empowers partners in scientific research clinical settings and emerging fields various areas the Company has filled the standard gaps across multiple industries including sequencers test reagents
driving breakthroughs in basic research the development of new clinical diagnostic technologies and products and the sample storage systems and tele-ultrasound technology. It has collaborated with partners throughout the industry chain
continuous expansion into new areas. In collaboration with the IDG Innovation and Investment Research Institute and
Shenzhen Rainbow Technology Co. Ltd. MGI Tech provides comprehensive support for startups through a model that both upstream and downstream to explore international markets. Moreover the Company has actively participated in
includes incubation industrial empowerment and investment. By actively participating in industry academic conferences standard-setting activities to provide crucial support for the standardization regularization and high-quality develop-
technical forums and significant domestic and international exhibitions MGI Tech enhances the promotion and publicity ment of the life sciences industry.of its products features usability and applicable scenarios thereby increasing the Company's influence and attention
within the industry.In 2024 the Company contributed to the release of 21 standards including 5 national standards
15 group standards and 1 enterprise standard.
Case "China's Intelligent Manufacturing Goes Beyond Just Reliability"
China's life sciences industry is currently at a crucial stage of development undergoing a significant transfor-
mation from a focus on scale to one on intelligence and from bio-manufacturing to bio-intelligent manufactur-
ing. MGI Tech as a leading industry player has consistently driven research in frontier areas and industrial Names of Some Standards
upgrading from genomics to multi-omics research accelerating the industry's leapfrog development through
ecological integration and innovation-driven approach.Recently MGI Tech spearheaded the launch of the "Reliability" initiative in collaboration with industry partners
underscoring their confidence and commitment to "Working Together to Create China's Intelligent Manufactur- Standard Name Standard Classification
ing that Goes Beyond Just Reliability". Currently 20 companies and institutions from various life sciences fields
have joined including MGI Tech Gene+ Smart Biotech and Zhonghe Gene (listed alphabetically not in any Genomics informatics — Description rules for genomic data for genetic
particular order).On the road of exploring the mysteries of life MGI Tech will pool the strength of the industry to International Standarddetection products and services
provide users with safer higher-quality and easier-to-use services and promote the realization of the dream of
making life measurable and accessible to everyone. At the same time as an industry leader MGI Tech is com-
mitted to jointly creating a fairer industry environment a more open industry ecosystem and a new world of
multi-omics integration. Biotechnology — Massively parallel DNA sequencing — General requirements International Standardfor data processing of shotgun metagenomic sequences
Case "Spatiotemporal and Single-cell Big Science Support Program" Information technology—Biometric sample quality—Part 14: DNA data International Standard
At the 2024 DCS Ecological Partner Conference themed "Three Arrows Shot Together * Born from Innovation" MGI
Tech alongside over 30 DCS ecosystem partners officially initiated the "Spatiotemporal and Single-cell Big General Principles for Performance Evaluation of Real-time Fluorescent
Science Support Program". The "Spatiotemporal and Single-cell Big Science Support Program" includes the Quantitative PCR Instrument
International Standard
"Spatiotemporal Pathology Big Science Support Program" and the "Single-cell Atlas Big Science Support
Program". Among them the "Spatiotemporal Pathology Big Science Support Program" will use spatiotemporal
omics technology to conduct in-depth research on solid tumors and hematological tumors. The "Single-cell Information technology—Biometric—Specification for High-throughput
Atlas Big Science Support Program" will use single-cell technology to conduct research on human organs natu- Sequencing Genotyping System International Standard
ral populations and disease cohorts and promote the establishment of a reference atlas that includes all cells
of healthy Chinese individuals.Blockchain and Distributed Ledger Technology—Reference Architecture
The Spatiotemporal Pathology Big Science Support Program International Standard
will carry out in-depth research on solid and hematological
tumors investigating their pathogenesis and pathological
features through spatiotemporal omics technologies. It will
also build a spatiotemporal pathology database to provide a
scientific foundation for understanding disease mechanisms
identifying new biomarkers and developing personalized
treatment strategies. This Program will be open to clinical
pathology experts establish specialized scientific projects At the conference MGI Tech collaborated with over
and initiate big science research projects. 30 DCS ecosystem partners to initiate the "Spatiotem-poral and Single-cell Big Science Support Program".
47 48Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
Adv ancing Life Science Tools for
Future Healthcare
In the long journey of exploring life sciences and biotechnology MGI Tech has been make pioneering
efforts. Driven by our mission of "Leading Life Science Innovation" We are committed to developing and
promoting advanced life science tools for future healthcare. The Company focuses on precision medi-
cine precision agriculture and precision health and is committed to providing customers with real-time
whole-picture and life-long digital life science solutions.Our pursuit extends beyond continuous R&D innovation and intellectual property protection. More impor-
tantly it is also demonstrated through a comprehensive systematic approach that fosters industry-ac-
ademia-research collaboration -- along with lean manufacturing global service excellence rigorous
quality management and a sustainable supply chain etc. By continually pushing the boundaries of
technology MGI Tech partners with global leaders to unlock the vast potential of life sciences and
technology drive innovation enhance human health and tirelessly work towards creating a more robust
life technology ecosystem.
2035 Plan
To build a core technology system that is independent and controllable at its source
To continuously advance the establishment of DCS Labs state-of-the-art omics
laboratories worldwide
To secure more than 200 patents authorized and software copyright registrations that
yearTo ensure that the sequencing data quality on the DNBSEQ platform reaches Q40（
99.99%）＞85%*
To have served over 3800 users in total
To add over 50 new strategic partners that year
To obtain more than 500 qualification certificates globally
This chapter responds to SDG goals
To offer open-source AI models for environmental health to research institutions
worldwide fostering international collaboration in ecological governance
To ensure that AI can address all environmental monitoring scenarios and that big
data platforms can support 80% of prefecture-level cities across China by 2025
4119 1520Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
R&D Innovation Ethical Safeguards
MGI Tech is committed to fostering a culture of innovation rooted in originality and self-reliance. We champion break- The ethical safeguards related to research and development are the core value coordinates of MGI Tech's technological
throughs in pivotal core technologies and seamless integration of interdisciplinary systems. Our approach encompasses innovation. MGI Tech adheres to international ethical standards including the Declaration of Helsinki the Biosecurity Law
the full spectrum of industry-academia-research-application collaboration driving the creation of innovative new and the Guidelines for the Collection Access Use and Sharing of Human Genome Data. The Company also strictly com-
models. This commitment has shaped a robust system of technological innovation propelling the manufacturing indus- plies with China's laws and regulations such as the Human Genetic Resources Administrative Regulations and the
try's innovation strategy forward. We lead and support innovation and research across the board cultivating an open Personal Information Protection Law of the People's Republic of China. This commitment ensures that its technology
interoperable inclusive and equitable R&D environment. MGI Tech is building a supportive R&D framework that champions research development and applications align with both ethical and legal requirements. We adhere to the fundamental
extreme thinking fosters innovative breakthroughs and encourages bold advances in cutting-edge territories. principles of valuing life and maintaining scientific impartiality striving to balance technological progress with social
responsibility. By establishing strict ethical review mechanisms and safeguarding the security of personal biometric data
R&D Management System we ensure informed consent and mitigate potential risks. We are dedicated to creating an open and inclusive system of ethical governance balancing technological innovation and ethical boundaries and fostering scientific and technological
MGI Tech has developed and continuously optimized a technology assessment and planning system tailored to its unique advancements that uphold human dignity and benefit society as a whole.needs. We have crafted a distinctive "four-level R&D hierarchical management model" aligned with our various develop-
mental phases. This model encompasses X-Exploratory Research R-Technical Research D-Product Development and
P-Online Upgrades. This structured approach ensures that our technological innovation and core competencies remain Performance Highlights
dynamic positioning us as industry leaders.MGI Tech took part in the specialized training and assessment for the Scientific Research Integrity Month. The train-
ing covered various topics including technology management ethics biological resources data security the
Core Competitiveness management of scientific research findings and maintaining scientific research integrity. The coverage rate of
Long-term Development: Focus on technology personnel training reached 100% and the pass rate of assessment reached 100%.X-Exploratory Research Basic Theory Research
Medium-term Development: Focus on
R-Technical Pre-research core technology breakthrough
The Company also tasked its research and development project leaders with participating in the "Project Leader Full-Cycle
Short-term Development: Focus on new product Management Training". This training included topics such as an introduction to technology ethics as well as technology
D-Product Development development and application technology ethics management and declaration. During the training session the R&D leader from MGI Tech was invited to give a
special lecture titled "Introduction to Ethics Declaration" who provided on-site guidance to attendees helping them review
P-Online Upgrades Present Development: Focus on functional relevant issues and offer practical suggestions and solutions to ensure effective project control in terms of compliance
performance improvement of existing products and ethical standards. Through such training and interaction the Company is dedicated to raising ethical awareness
among R&D project leaders improving compliance management and fostering the integration of technological innova-
MGI Four-level R&D Hierarchical Management Model tion with code of ethics.The Company has established a model for enhancing autonomous innovation capabilities focusing on four key areas:
products disciplines talent and evaluation. This model is designed to help the Company develop a distinct innovation
advantage and drive progress within the industry. Product development is guided by a scientific and technological orien-
tation with a focus on addressing specific issues in customer applications. This is achieved by identifying and prioritizing
technical improvements that directly address major application needs. In the realm of disciplines the Company follows a
problem-driven approach extracting common scientific issues from real-world problems. This approach spans across
various fields including physics chemistry mathematics and optics. Regarding talent development the Company has
implemented a "mentorship model" for talent training which aims to strengthen the innovative capacity of the team and
ensure a sustainable pipeline of innovation. The evaluation process is tailored to the different stages of achievement with
a particular focus on the practical application of those achievements and customer satisfaction.Disciplines Products
Problem-oriented scientific research Technological leadership and driven by
model: Emphasizing innovation through a major applications
foundational disciplinary approach Independent Innovation
Talents Evaluation
Mentorship Model: Cultivating talent through Customized evaluation systems for preliminary
guidance from seasoned experts to novices research active R&D and online products
Integrated model for building independent innovation capabilities
51 52Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
R&D Resources
326 Pieces 139 Pieces 73 Pieces 41 Pieces
MGI Tech has established specialized R&D departments to promote technological progress Number of patent Number of patents Number of utility model Number of utility model
which include the Instrument General Technology R&D Center Instrument Product R&D 2024 Data applications granted patent applications patents granted
Center Sequencing Biochemistry R&D Center Application R&D Center BIT Product R&D
Center Qingdao R&D Center Changguang R&D Center CG R&D Center and IMABOT R&D
Center. These R&D departments are based in various locations including Shenzhen Wuhan R&D investment
Qingdao Changchun Kunshan and the United States. The R&D organizations are struc- 90998.3 million yuan 40 Pieces 32 Pieces 77 Pieces 84 Pieces
tured with clearly defined roles and collaborative efforts encompassing all stages from Number of design Number of design Number of software Number of software
scientific research and exploration to product development and online upgrading involv- patent applications patents granted copyright applications copyrights registered
ing multiple fields such as sequencers laboratory automation and new businesses.MGI Tech consistently emphasizes the significance of independent and controllable R&D staffing number
procurement of upstream core raw materials. The Company is dedicated to achieving
in-house production and supply of critical core materials including sequencing enzymes 812People
and sequencing dNTPs. We have developed a range of proprietary technological platforms Joint Innovation
and is equipped with state-of-the-art biotechnology instruments. And we have recruited
internationally renowned scientists and technical experts who are specialized in genomics
bioinformatics molecular biology and related fields continuously promoting pioneering R&D personnel ratio Through joint innovation with partners across various fields MGI Tech has not only enhanced its R&D capabilities in specific
research within the life sciences sector. 31.18% areas but also fostered interdisciplinary and inter-sectoral technological integration and innovation yielding a positive
To boost innovation capabilities the Company has developed the MGI-IPD integrated impact on societal innovation. As technology continues to advance and our collaboration network expands we anticipate
product development model. This model combines the ISO 13485 international standard even more significant breakthroughs and achievements in our joint innovation endeavors.with the leading R&D practice model IPD closely integrating industry quality requirements
with integrated development tools. Furthermore we incorporate risk management
throughout the entire lifecycle of technological innovation tailored to the industry's charac- Percentage of R&D
teristics and our control requirements. To ensure effective risk control we develop custom- personnel holding
ized processes for each project and utilize evaluation mechanisms including "five decision Master's Degrees or Case Strategic Cooperation with Hong Kong Science & Technology Parks Corporation
risk reviews fifteen technical risk reviews and three types of quality risk assessments". This higher60.47%
comprehensive approach provides robust support for technological innovation by ensur-
ing the controllability of decision-making as well as technical and quality risks. On September 10 2024 Hong Kong Science & Technology Parks Corporation (HKSTP) and MGI Tech officially
signed a strategic partnership agreement to jointly develop a world-class life science innovation platform in
Hong Kong. As part of the collaboration MGI Tech has also launched joint innovation initiatives with six research
Intellectual Property Protection institutions and companies including InnoHK's Hong Kong Center for Neurodegenerative Diseases (HKCeND) InnoHK's Hong Kong Institute of Science & Innovation at the Chinese Academy of Sciences Quantum Life Asia
Molecular Diagnostic Laboratory (AMDL) Codex Genetics Limited and GemVCare Limited. This move has not
only significantly boosted the R&D and innovation capabilities of MGI Tech and its partners in their respective
MGI Tech strictly adheres to the legal frameworks governing its operations including the Patent Law of the People's Republic of
China and the Trademark Law of the People's Republic of China as well as Enterprise Intellectual Property Management fields but also broken down interdisciplinary and cross-realm barriers fostered the integration of technology
Standards in the relevant countries and regions. To enforce this commitment the Company has established a dedicated and ideas and injected new vitality into the global life sciences sector and social innovation.intellectual property department and implemented comprehensive internal systems. These systems such as the Intellectual
Property Incentive Management Procedure Patent Management Procedure and Technology Secret Management Procedure
cover the entire lifecycle of intellectual property management from project inception and development to product launch and
withdrawal from the market.Relying on an independent and controllable advanced international core technology system the Company is dedicated to
building a comprehensive "full-chain protection mechanism" for key technologies like gene sequencing and laboratory
automation. It simultaneously carries out high-value patent development projects strategically selects and cultivates patent
portfolios through priority examinations invalidations and other methods and accelerates the commercialization of intellectual
property to enhance the efficiency for applying research results to production and the capability to achieve value.Strengthening the global positioning
of core technologies Licensing
Patents Intellectual IP commercializatio TransferBuilding a system for nurturing
high-value patents property rights
strategy Products
Defensive and Against this backdrop MGI's α Lab has been officially established at HKSTP focusing on AI research and development
offensive Standardization of commercialization and building incubation platforms. Leveraging Hong Kong's unique strengths in technological innova-Strengthening the global Trademarks Standardization patent-related
positioning of trademarks technology tion and international connectivity along with the strategic position of the Guangdong-Hong Kong-Macao Greater Bay
Area α Lab will expand its global R&D footprint speed up international collaboration and empower the high-quality
development of the life sciences industry.Intellectual Property Rights Strategy Framework
53 54Advancing Life Science Tools
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Chairman Transform Innovation Governance Partner Environment
Comprehensive Support for Life Sciences AI-enabled Full-throughput Products
Big Data Infrastructure
The Company has extensively developed a range of AI-based algorithms to boost the competitiveness of its products. By
With the rapid advancements in biotechnology and information technology particularly the breakthroughs in gene leveraging AI models to understand the biochemical optical and physical processes behind signal generation in
sequencing and enhancements in data processing capabilities the establishment of big data for life sciences has sequencing we have optimized the sequencer's base calling algorithm cutting the error rate on conventional libraries by
become feasible. MGI Tech is dedicated to the independent research and development of advanced life science tools more than 30%.Additionally by integrating 4-bit ultra-low precision quantization compression technology the Company's
driven by a spirit of innovation. The Company has established a platform that integrates "reading writing and storage" AI model has been successfully applied to the T-level ultra-high throughput sequencing platform enabling full coverage
functions for core life science and technology tools offering comprehensive support for the development of big data for across the entire range—from E-series low throughput products to T-series ultra-high throughput products.life sciences. During the reporting period the EvoPlay protein design AI agent at the Company's R&D center supported by an automated
high-throughput protein screening platform independently designed a flash-type luciferase with high fluorescence inten-
sity and thermal stability which can accurately distinguish four types of bases using just a single signal acquisition
overcoming the limitations of traditional two-color labeling technology. Based on this technological achievement the
Deepening Innovations in Genetic Sequencing Technology Company has introduced flash fluorescence labeling technology upgraded its flagship DNBSEQ-E25 gene sequencer and
launched the DNBSEQ-E25 Flash Sequencer significantly reducing sequencing time. By combining an AI-based base
calling algorithm with the powerful performance of the high-computing power edge computing device the DNBSEQ-E25
With the advent of the era of "full read lengths" life Flash Sequencer can now complete the SE50 sequencing process in as little as 2 hours. This further meets the need for
can be measured more accurately. Leveraging its ultra-fast turnaround times in public health infectious disease diagnosis and other fields while also expanding the appli-
core technology the Company has taken an indus- Gene Sequencer cation scenarios of compact gene sequencers.trial leading position in the R&D and production of the In terms of bioinformatics analysis technology the Company uses machine learning algorithms to enhance the detection
tools for "reading" life – the gene sequencer. As a and analysis of genetic variations. By leveraging gene sequencers to generate large volumes of sequencing data the
provider of advanced life science tools MGI Tech is Company builds and trains AI models that can distinguish between high- and low-quality variations. This approach
not only capable of independently developing and significantly boosts the accuracy and efficiency of variation detection providing more accurate basic data for scientific
mass-producing clinical-grade gene sequencers research and clinical medical applications.with different throughputs from Gb level to Tb level
but also the only institution in the world that simulta-
neously possesses three gene sequencing technolo- Continuously Enriching the Product Matrix
gies and products: "excitation luminescence self-lu-
minescence and non-luminescence".During the reporting period the Company launched the CycloneSEQ-WT02 (Chinese name: "Wutong") a medium-throughput
Building on continuous innovation and technological nanopore gene sequencer and the G400-ER a high-throughput nanopore sequencer. These additions not only expanded the
advancements the Company has pioneered the Company's product lineup in nanopore gene sequencing but also offered researchers a complete solution covering both
deep integration of "short read length" (DNBSEQ G50 medium and high-throughput needs helping to accelerate advancements in genomics research.high-throughput sequencing platform) and "long
read length" (CycloneSEQ nanopore sequencing
platform) sequencing technologies creating a The "Wutong" CycloneSEQ-WT02 is a medium-throughput nanopore gene sequencer with a
whole-process tool matrix with the goal of "full read maximum throughput of 50G. Its run time can be flexibly set anywhere from 10 minutes to 72 hours
lengths" (SEQ ALL).This innovative breakthrough has accommodating a wide range of sequencing requirements. Its applications are diverse and include
made the Company the first Chinese enterprise to amplicon sequencing metagenomic sequencing whole-genome sequencing of small genomes
integrate both "short read length" and "long read low-coverage whole-genome sequencing and whole transcriptome sequencing. This product is
length" technology platforms. By combining the G400 especially well-suited for scientific research institutions and small to medium-sized laboratories
strengths of both "short read length" and "long read offering an affordable and efficient sequencing solution while also making gene sequencing more
accessible.length" sequencing technologies—like twin swords
working in unison—the Company has successfully
broken down barriers between different sequencing
technologies providing more accurate and compre-
G400-ER is a high-throughput nanopore gene sequencer with a throughput of up to 400G. Its single
hensive solutions for scientific research and clinical run time is flexible and adjustable ranging from as short as 1 minute to as long as 72 hours. The core
applications and effectively promoting technologi- advantage of this product is its ability to support larger and more complex genomics research
cal iteration and industry transformation in the field applications such as whole genome resequencing de novo genome assembly full-length transcrip-
of gene sequencing. tome sequencing epigenome sequencing and chromosome interaction analysis. The launch of
"Wuyue" offers robust technical support for large-scale genomics research and precision medicine
particularly excelling in studies that involve complex samples and high data requirements.
55 56Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
A Comprehensive Strategy for Digital Equipment and Systems
in Life Sciences
Focusing on the strategic vision of "whole-process automation scenario diversification and platform-based technology" Business
MGI Tech is actively building the foundation for an intelligent digital life ecosystem. By embracing digitalization the Com- Segments Product Type Product introduction Main Product Models
pany keeps advancing the miniaturization smart features and remote management of its products. Through indepen-
dent R&D and strategic cooperation the Company has built a comprehensive technological and ecological reserve
providing efficient and accurate intelligent device and system solutions supporting cutting-edge scientific progress and DNBelab C-series MGIEasy
technological innovation in the field of life sciences and meeting diverse customer needs. Single-cell platform Single-cell library building and MGIDS-1000 etc.MGIUS-R3 5G ultrasound
Business
Segments Product Type Product introduction Main Product Models Ultrasound imaging robot mobile vehicle and
platform Telemedicine handheld wireless color
Doppler ultrasound
Sample pre-processing workstation diagnostic device
transferring samples from sampling MGISTP-7000 series
Automated sample tubes to standard microplate wells
processing systems Comprehensive management
platform for gene sequencing
High-throughput automated sample BIT products and lifecycle management of ZTRON and ZLIMS etc.processing by pipetting for library MGISP-960 series and gene data including both
preparation and nucleic acid MGISP-100 series hardware and software
extraction
New
businesses
One-stop modular sequencing An automated biological sample Ultra-low Temperature MGICLab series and
workstation providing a full process MGIFLP series Automatic Biological
resource library that is safe sample management
automation platform from sample Sample Library intelligent efficient and covers all system ZSM pro etc.preparation to sequencing report temperature zones
issuance
The system utilizes modular auto-
Fully automatic plasma membrane mation tools to flexibly customize
Laboratory separation production line offering a automation products ensuring high MGIGLab-S series "Smart Lab" Systemintegration and stable performance.Automation Automated platform full process automation platform Smart Lab
from whole blood to plasma mem- It is also equipped with intelligent
brane layer software creating an efficient and
collaborative operation system.Fully automatic library preparation
production line offering a full process MGI Tech is actively advancing the integration of artificial intelligence with its existing products and technologies to com-
automation platform for prehensively improve the intelligence and efficiency of the overall solution. The Company constantly iterates and
ultra-high-throughput library MGIGLab-L series upgrades its bioinformatics computing and storage products offering a wide range of solutions—from basic stand-alone
preparation with intelligent customi- and clusters to multi-node elastic resource pools and compute-storage convergence. By seamlessly integrating multiple
zation large language models with biological AI models the Company has created a hybrid inference engine that enables
intelligent computing power scheduling significantly enhancing resource utilization and boosting overall system intelli-
gence. Based on a micro-service architecture the Company supports modular combination and cross-architecture
Reagents for DNA and container scheduling optimizing the system's resilience and customization capabilities.RNA extraction
Universal testing Reagents for sample processing and consumables for In the field of laboratory management the Company is dedicated to creating a cutting-edge intelligent management
platform consumables compatible with automation and platform that combines AI large models with automation technology. By leveraging smart decision-making and dynamic
automation equipment reagents for sample scheduling it enables digital intelligent and unmanned management of life sciences experiments significantly improving
collection and storage scientific research efficiency and accuracy. Additionally the Company consistently enhances data governance security
etc. compliance and ecosystem collaboration creating standardized end-to-end one-stop solutions that enable research-
ers to focus on innovation and discovery while making laboratory management smarter more efficient and more secure.
57 58Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
Breakthroughs and Achievements of DNBSEQ
Gene Sequencing Technology The Booster of Precision Medicine
Since the Company launched its first domestically produced gene sequencer DNBSEQ platform BGISEQ-500 in 2015 this The contribution of the DNBSEQ platform in promoting the development of precision medicine cannot be underestimated.technology has quickly advanced and become a key pillar of life science research. After ten years of development Through applications such as non-invasive prenatal testing and whole genome sequencing this technology provides
DNBSEQ has been adopted in 75 countries and regions worldwide. Its users have published over 10000 high-impact new opportunities for early disease screening and personalized treatment. For example liquid biopsy technology based
scientific articles covering more than 5406 biological species showcasing its exceptional performance in data quality on DNBSEQ can detect circulating tumor DNA opening up a new path for early diagnosis of lung cancer and colorectal
and research applications. cancer. This not only enables researchers to better understand the mechanisms of cancer but also effectively guides the
development of personalized treatment plans.The Evolution of Technology
Going Deep into Emerging Fields
With ongoing advancements in DNBSEQ technology its core advantages—high throughput low cost and exceptional
accuracy—have completely changed the paradigm of basic research in life sciences. Thanks to this platform researchers Building on foundational scientific research DNBSEQ technology has also been actively extended into emerging fields like
have been able to analyze genomes transcriptomes and epigenomes like never before leading to major advances agricultural genomics ancient DNA studies and synthetic biology. For example in agricultural genomics researchers
across various fields. By the end of 2024 there were 3398 research articles published using the DNBSEQ platform includ- have used this technology to analyze the genetic structure of important economic traits in pigs successfully published
ing papers in top academic journals like Cell Nature and Science. These studies not only reveal the dynamic changes in relevant research results and promoted the progress of agricultural breeding. Additionally MGI Tech's single-cell
gene expression but also explore the diversity of microbial communities and their interactions with hosts providing sequencing platform and spatiotemporal omics technology are advancing the precision and sophistication of research.important data support for precision medicine. These technologies have enabled new breakthroughs in biology such as high-precision developmental panoramic atlas
construction of model organisms like mice and zebrafish and in-depth analysis of the early pregnancy microenviron-
ment.After ten years of continuous development MGI Tech's DNBSEQ sequencing platform has not only provided robust techni-
cal support for life sciences research but has also opened new avenues for investigation in fields such as biology medi-
cine and agriculture worldwide. This platform lays a strong foundation for future scientific discovery and human health
advancements highlighting the limitless potential of technological innovation to propel progress in the life sciences. As
more high-quality research emerges DNBSEQ will remain at the forefront of life sciences and technology uncovering the
mysteries of life and driving the progress and prosperity of human technology.
10960+ articles
Number of articles published on the Number of high-impact articles published
DNBSEQ platform year by year on the DNBSEQ platform year by year
As of December 2024
59 60Advancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
Promoting Cutting-Edge Research in Modern Life Sciences
Case PKU-IAAS - MGI Tech Cutting-edge DCS Lab
MGI Tech is dedicated to its mission as the "To Develop and Promote Advanced Life Science Tools for Future Healthcare"
and embraces the vision of "Leading Life Science Innovation". By launching initiatives like the Global Research Empower-
ment Program and continuously enhancing our product technological capabilities we strive to propel cutting-edge On July 25 2024 the Peking University Institute of Advanced Agricultural Sciences (hereinafter referred to as the
research in the field of modern life sciences. "PKU-IAAS") announced a strategic partnership with MGI Tech officially unveiling the "PKU-IAAS - MGI Tech
Cutting-edge DCS Lab". This collaboration seeks to leverage the strengths of both parties to foster comprehen-
sive cooperation across high-throughput sequencing cell omics spatiotemporal omics and nanopore
sequencing etc. The goal is to advance the application of cutting-edge technologies in agricultural research
and address key scientific challenges in plant life sciences.Global Research Empowerment Program
The DCS Lab is equipped with MGI high-throughput gene
sequencer DNBSEQ-G400 DNBelab C-TaiM 4 single-cell droplet
On September 11 2023 MGI Tech officially announced the initiation of the DCS Lab 2023 Scientific Research Empowerment generator and CycloneSEQ nanopore sequencing product
Program targeting top global scientific research endeavors. This program marks MGI Tech's inaugural effort in empower- providing core support for the exploration of plant life process-
ing laboratories within cutting-edge research domains focusing on population genomics cell omics and spatiotemporal es. The relevant instruments can enable laboratories to carry
omics (aligning with the "DNA Sequencers" "Cell Omics" and "Spatial Omics" sections of the DCS Lab). It aims to accelerate out large-scale and standardized single-cell multi-omics
research progress by enabling scientific endeavors in these emerging technologies. The ultimate goal is to assist leading research and will subsequently help PKU-IAAS to further
global researchers in establishing internationally recognized large-scale and standardized multi-omics cutting-edge enhance its scientific research capabilities in the single-cell
laboratories thereby fostering the advancement of frontier research and industry growth in life sciences. field.Up to now 23 DCS Labs have been established worldwide which have joined by the Shanghai Center for Brain Science and
Brain-Inspired Technology the Haihe Laboratory of Cell Ecosystem the National Cancer Centre Singapore the Peking
University Institute of Advanced Agricultural Sciences Fujian Medical University the National Model Animal Science Center
of China Agricultural University and the Institute of Health and Medicine at Hefei Comprehensive National Science Center Embarking on the 6D Era of Life Sciences
etc.MGI Tech has embraced the concept of "scientific research
empowerment" to deliver comprehensive technical support to
the world's leading scientific research teams. This strategic
Mini Version Standard Version Super Version approach has broadened its presence in the life sciences field
DCSLab DCSLab DCSLab and marked the beginning of a new "6D era". The 6D Era is more
than just a technological term; it represents a completely new
Can simultaneously support research in the large population direction perspective—spanning genes cells tissues organs individuals
spatiotemporal direction and single-cell direction and both internal and external environments. It extends to Embarking on the 6D Era of Life Sciences
deep analysis involving thought and consciousness aiming to
create a whole-picture multi-dimensional system for under-
100-150 square meters standing life. This approach enables scientific research to
(laboratory area) explore development disease regeneration and other
challenges from a more comprehensive perspective.>10000 person-times/year high-depth In this context MGI Tech has expanded the range and application of scientific research tools by integrating four major life
WGS (research capability in large science product lines: high-throughput nanosphere sequencing nanopore sequencing cell omics and spatiotemporal
population direction) genomics. This integration enriches both the types of tools available and their application scenarios. MGI Tech following
the resolution passed at the 2023 Annual Shareholders' Meeting has entered into a cooperation agreement with relevant
Number of 3000 cell responses/per year BGI business entities. Through this agreement MGI Tech has secured the global market distribution rights for nanopore
(research capability in single-cell sequencing products as well as intellectual property authorization and worldwide distribution rights for STOmics products.direction) These measures not only strengthen the complementarity between product lines but also provide stable and reliable core
technology support for global scientific research teams.
480 spatiotemporal omics chips/year Through such integration of multidimensional technologies and a global collaborative network MGI Tech is taking practi-
(research capability in spatiotemporal cal and solid steps to promote the leapfrog development of life sciences laying a solid foundation. The opening of the 6D
Era not only builds upon the existing efforts in scientific research empowerment but also introduces new tools and ideas
direction) for exploring life in greater complexity and depth in the future. This milestone highlights MGI Tech's continuous dedication
and concrete actions to advance modern life sciences and technology.
61 62Advancing Life Science Tools
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Chairman Transform Innovation Governance Partner Environment
Quality Management
MGI Tech upholds the principle that quality management is its core competitiveness champions the "Five Synchronization" To prevent the unintended use or distribution of substandard products MGI Tech has established and strictly adheres to
quality management model and establishes a comprehensive and integrated quality management system. The Compa- a series of internal protocols including the Nonconforming Product Control Procedure and the Recall Management
ny is committed to covering all business processes and value chains strictly meeting domestic and international compli- Procedure. Additionally we have implemented a comprehensive system for the identification documentation contain-
ance requirements and achieving integrated management through digital empowerment. MGI Tech has established a ment reporting investigation disposal and monitoring of non-conforming products ensuring the safety and efficacy of
robust quality and safety assurance mechanism that extends throughout the entire product lifecycle upholding the medical devices and safeguarding human health.philosophy of "excellence in intelligent manufacturing quality first". The Company consistently strives for excellence in
quality across multiple areas including product research and development production testing and delivery. By leverag-
ing quality to drive technological innovation and enhance competitiveness quality management becomes a crucial
strategic pillar supporting the sustainable development of the Company. Quality control procedure
Production manage-
Quality Concept First ment procedure
Production-related
MGI Tech adopts the "Five Synchronization" quality management model integrating science technology quality warehouse management
standards and intellectual property rights. Upholding the philosophy of "excellence in intelligent manufacturing quality
first" we implement a quality policy that emphasizes "adherence to standards pursuit of excellence commitment to
innovation and continuous improvement". Our quality management structure is robust with the CEO as the chief respon- Identification management Freeze management
sible officer for quality and safety the EMT as the operational decision-making body and the Global Quality System VP 01 standards regulations
overseeing overall management ensuring clear roles and an efficient operation. We have established detailed proce- Discoverer Identification recording and isolation
dures including the Medical Device Product Design and Development Management Procedure Production Management of non-conforming products
Procedure Customer Service Management Procedure Quality Control Procedure and others to fully execute quality Online defect record form（ONR）
responsibilities establish a quality integrity mechanism and build a governance system safeguarding product quality. Nonconforming product report（NCMR）
R1
02
Excellence in intelligent manufacturingquality first Non-con- Prevent the spread of 03 05forming nonconforming items Investigate 04 Review and
handling non-conforming Develop disposal approval
Adherence to Pursuit of Commitment to Continuous team products plans for non-conforming
standards excellence innovation improvement products R1
06
We diligently comply Prioritizing customer Innovation lies at the We embrace a QA Follow-up and improvement
with global and local satisfaction we excel heart of intelligent craftsman's ethos
regulations as well in quality by under- manufacturing. It constantly pushing Nonconforming product report（NCMR）
as industry standing and fulfilling drives our continuous our limits and raising
standards. Our customer needs and improvement of the the bar for intelligent Completion
commitment is to consistently exceed- core competitiveness manufacturing Nonconforming Product Control Procedure
delivering high-qual- ing their expectations of our products excellence.ity safe eco-friendly throughout the adding value for our The Company prioritized quality and compliance and further upgraded its quality management training system in 2024.and effective product lifecycle from customers. The training content focused on medical device regulations information security laws international and domestic
products and design to delivery. standards as well as knowledge and tools related to quality management.product portfolio In 2024 the Company revamped its quality training program for new employees aiming to train 40900 people across 210
ensuring we get it positions and offer 848 professional course sessions. This update substantially expanded both the scope and depth of
right from the start.training compared to the previous year. Additionally the Company used the "Quality Lecture" platform to host monthly
talks by both internal and external experts for all employees. In 2024 the Company delivered 42 quality-related courses
totaling 2560 hours of training which reached 3400 employees. This ongoing effort enhanced compliance awareness
Leadership role and professional skills of all employees.Full participation Through systematic and comprehensive quality training the Company has deeply ingrained a quality culture into every
employee's professional practice fostering a continuous iteration of quality management that seamlessly translates from
MGI Quality Philosophy concept to action.
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Chairman Transform Innovation Governance Partner Environment
Establishment of the Compliance System
Compliance Policy Contents
Adhering to risk management standards like ISO 14971 the Company has established a quality and safety risk manage-
ment system. It carries out full lifecycle risk management from risk identification risk analysis risk assessment and risk
control etc. utilizing various risk analysis tools such as Preliminary Hazard Analysis (PHA) and Failure Mode and Effects
Analysis (FMEA). By integrating these tools with information systems the Company implements continuous and dynamic Gene Sequencers: DNBSEQ-T20 × 2 DNBSEQ-T10 × 4 DNBSEQ-T7 MGISD-
risk management. NBSEQ-G400 MGISEQ-200 DNBSEQ-G99 and DNBSEQ-E25 etc.;
Covering the Laboratory Automation: MGISTP-3000 MGISTP-7000 MGISP-NE32
full range
Risk Information Collection Risk-control Mechanism of products MGISP-NE384 MGISP-100 and MGISP-960 etc.;
New Business: MGIUS-R3 MGICLab-LN55K Pro and ZTRON all-in-one
Follow the requirements of ISO 14971 risk machine etc.management standard
Design Input Optimization/Security Design
Design Change Revise DFMEA
Design R&D-led
Stage
Design Verification Conduct Testing Multiple certifications such as NMPA CE CB cTUVus and EAC cover registration and Validation Having 395 certifications in more than 20 countries or regions including China the European
Risk qualifications
Design validation Identification Risk Control Revise the Union Japan South Korea Australia Saudi Arabia Brazil and Malaysia and Risk Report
Risk Analysis Risk cover more than 90 market access qualifications in the Asia Pacific European Assessment Union North America and Central Asia regions.
5M1E Change 5M1E Optimization
Non-conforming
Production Products Revise PFMEA Manu-
Stage Full Lifecycle Risk Management factur- ISO 13485: Medical Device Single Audit Program quality management systemVerification Conduct Process
Problems Validation ing-led ISO/IEC 27001: Information security management system
SPC Criteria for Revise Process Complete ISO/IEC 27701: Privacy information management system
Abnormality Documents systems
Production ISO/IEC 20000: Information technology service management system
Stage Stage after
Customer Design Stage Product Launch CAPA ISO 14001: Environmental management system ISO 45001: Occupational health
Complaint Improvement and safety management system
Stage
PMS Information Data Analysis andImprovement Quality- QC08000 hazardous substance process management systemafter
Product Regulatory Regulatory Gap led
Launch Change Improvement
Supervision and Process
Spot Checks Optimization
Support for risk analysis tools such as FMEA/PHA Performance Highlights
Leveraging a robust risk management and prevention mechanism and through In 2024 By the end of the reporting period
continuous optimization of the compliance system and strengthening of risk manage- In 2024
ment the Company has effectively prevented and controlled product quality and
safety risks. Since its establishment the Company has consistently maintained a good the Company obtained 77 medical device the Company had secured a total of 258 medical the Company successfully
quality and safety record with no post-market product adverse reaction incidents device qualification certificates globally. This includes qualification certificates globally comprising
product recalls or failed product spot checks at either the national or provincial level. cleared 65 audits 38 domestic certificates and 220 international
MGI Tech constantly makes efforts in establishing a certification system committed to conducted by regulatory 12 domestic and 65 international certifi- certificates covering multiple countries across Asia
establishing a comprehensive and high standard management system to ensure authorities cates for medical device products. Pacific the Americas Europe and Africa.outstanding performance in product quality information security environmental
protection and occupational health and safety etc. The Company actively pursues and
maintains a wide range of authoritative certifications globally continually reinforcing its
compliance foundation:
65 66Advancing Life Science Tools
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Chairman Transform Innovation Governance Partner Environment
In terms of ISO 9001 quality management system certification Wuhan MGI Tech Co. Ltd. has completed the certification Lean Intelligent Manufacturing
fundamentally ensuring the standardization and normalization of organizational management. In the field of ISO 13485
Medical Device Single Audit Program quality management system certification the Company continues to expand its MGI Tech has responded to the intensifying competition in modern manufacturing by fully embracing lean production
certification scope currently covering Wuhan MGI Tech Co. Ltd. Shenzhen MGI Tech Co. Ltd. Latvia MGI Japan MGI Tech philosophy and smart manufacturing technologies building a robust system to enhance organizational capabilities. The
Co. Ltd. and Germany's Intelligent Manufacturing MGI Tech GmbH comprehensively enhancing the Company's quality Company adheres to the core management philosophy of "people-oriented and continuous improvement". It has put in
governance capabilities in the medical device field. By continuously promoting quality system certifications from external place the MBS lean system and transformed the value streams across research and development logistics production
authoritative institutions the Company not only ensures high-quality standards for products and services but also quality assembly and the supply chain using systematic innovation methods addressing evolving market challenges.provides solid support for its internationalization strategy.The essence of lean transformation is effectively cutting waste boosting efficiency managing costs and improving prod-
uct quality. To drive manufacturing transformation the Company has set up the Lean Committee to develop strategic
management plans and oversee the progress of lean initiatives. Through standardized processes and continuous
improvement the Company has significantly reduced production hours and overall costs while ensuring production
stability. Currently MGI Tech's lean transformation has entered the stage of value-driven and empowerment improve-
Case Accredited by CNAS ment steadily advancing toward a new stage of business integration and intelligent manufacturing.MGI Tech General Testing Laboratory has successfully passed the on-site laboratory evaluation by the China Performance Highlights
National Accreditation Service for Conformity Assessment (CNAS) and officially obtained CNAS accreditation
(registration number: CNASL22241) on December 31 2024 becoming MGI Tech's first laboratory accredited by
CNAS. CNAS is an accreditation body approved and established by the Certification and Accreditation Adminis- In 2024 the Company will continue to drive lean management initiatives foster employees' creativity and
tration of China (CNCA) which uniformly implements accreditation work for accreditation bodies laboratories enhance on-site operations. To date the total revenue generated for the year has surpassed 4 million yuan
and inspection agencies etc. CNAS is the most authoritative laboratory accreditation body in China with its which is generated from 764 proposals submitted with 676 deemed effective resulting in an effective-
accreditation results enjoying widespread international recognition and mutual acceptance. ness rate of 88%. Of these 601 proposals have been implemented achieving an implementation rate of
89%—a 34% increase from 2023.
In terms of quality management the Company has always adhered to the principle of "adhering to standards maintaining
meticulous records ensuring vigilant monitoring and enabling full traceability of all actions" and it has incorporated this
philosophy throughout the entire production process. From production management and manufacturing technology to
frontline operations the Company has achieved effective full lifecycle equipment management through standardization
and precise control. Additionally in terms of IoT-enabled materials and process standardization the Company further
strengthens source control to ensure stable and reliable quality throughout the whole process from raw materials to final
delivery.In order to better support the improvement of quality and efficiency the Company is continuously stepping up its applica-
tion of information technology. The Company has achieved transparent and visual management of the whole process—
from order receipt to product delivery—by integrating and implementing the SRM supplier management system alongside
the MES manufacturing execution system. This not only streamlines business processes but also greatly improves quality
traceability and production process control laying a strong foundation for the ongoing advancement of lean manage-
ment.Building on this foundation the Company continually advances automation upgrades by deeply integrating mechanical
intelligence with automated tooling equipment thereby improving production efficiency and precision. Currently the
intelligence level of our sorting and material preparation processes continues to improve. We have independently devel-
oped or adopted 69 core automation devices which are now widely used across various production stages. This has
greatly reduced our delivery times and has led to stable production processes and consistent product quality.Looking ahead the Company plans to further enhance its existing intelligent manufacturing capabilities by deeply
integrating cutting-edge technologies like 5G AI and industrial robots. The goal is to significantly improve resource
allocation efficiency and strengthen process quality control across the board. The Company's ultimate goal is to achieve
whole-process data tracking and production transparency build a truly intelligent manufacturing ecosystem accelerate
the development of smart lighthouse factories and continuously strengthen its core quality competitiveness.
67 68Advancing Life Science Tools
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Chairman Transform Innovation Governance Partner Environment
Global Services Customer Service Management
MGI Tech is continuously refining its global network and localizing its global marketing efforts. The Company has estab-
lished local sales teams for the China Asia-Pacific Europe-Africa and Americas regions. Additionally it has established Customer satisfaction survey
subsidiaries in San Jose (USA) S?o Paulo (Brazil) London (UK) Paris (France) Shenzhen (China) and other locations to
support local business growth. At the same time we have established customer experience centers in thirteen locations
including Beijing (China) Boston (USA) S?o Paulo (Brazil) London (UK) Riga (Latvia) Berlin (Germany) and Tokyo In the process of establishing a customer satisfaction survey mechanism and forming the Customer Satisfac-
(Japan). Our aim is to enable local researchers and partners to engage with MGI Tech's advanced technologies and tion Survey Procedure we are committed to integrating environmental social and governance (ESG)
innovative platforms. These centers provide comprehensive technical support and application guidance for diverse concepts into our business practices. Through regular surveys we promptly capture customer sentiments
requirements such as training technical testing and project validation. regarding our products delivery and service quality. Simultaneously we optimize survey tools to improve
customer completion experience and follow a closed-loop process to ensure accurate responses to customer
MGI Tech actively cultivates comprehensive customer relationships by employing a refined customer satisfaction mea-
surement system and improvement mechanism. Regular customer surveys are conducted and improvement measures needs. Moreover we take customer satisfaction and privacy seriously. To ensure customers' rights and data
are formulated based on the feedback received. The Company places great importance on customer feedback and com- are secure we have established a customer privacy policy. Through these measures we demonstrate our
plaints and has established an efficient system for managing and monitoring them through its CRM system. A compre- social responsibility and commitment to sustainable development while also ensuring the continuous
hensive customer service management system covering pre-sales in-sales and after-sales phases ensures swift and improvement of customer satisfaction.effective responses to and effective resolution of customer concerns. Additionally the Company has established a series
of service standards including the Customer Information Feedback Management Procedure Top Customer Service
Management Procedure Pre-sales Technical Support Service Instruction Customer Training Service Management
Instruction After-sales Remote Service Management Instruction Warranty Service Implementation Management Instruc-
tion and Complaint Management Procedures aiming to enhance service quality and operational efficiency. Customer visit
This year R&D technicians are arranged to conduct high-quality special visits to both current and prospective
customers in addition to routine customer visit. These efforts are aimed at deepening our understanding of
Adverse events customers' genuine requirements collecting feedback on product utilization and facilitating swift resolution
Feedback investigation results and product optimization.Recall
Product disposal Reporting to government
Escalating to quality
Feedback investigation Investigation
Customer FAS/FSE Quality Causes Online seminar videos and training platforms
Validation of reported
problems Feedback investigation results
Addressing the Corrective actions The official website features online seminar videos and training platforms offering webinars and instructional NG
identified problems content covering the performance and technical operation of our products. These resources serve as valuable
OK platforms for both potential and existing customers to seek product guidance participate in technical discus-Customer
service center Effectiveness Close sions adhere to standardized operations and engage in remote training sessions.verification
Feedback
CRM system
Satisfaction survey
Customer complaint acceptance channels and processing procedures
Closed-loop management process for customer feedback
MGI Tech offers customers a range of ways to submit complaints including through our official website email
and phone. Once a customer complaint is accepted the Customer Service Center and Quality Center will
promptly respond and establish a dedicated team to investigate the issue. The team will promptly identify and
address customer issues while thoroughly investigating their underlying causes. Following this the team will
develop and implement corrective and preventive measures which may include product upgrades and
changes where necessary. After implementing these measures MGI Tech will assess and monitor their effec-
tiveness to ensure that the problems are fully resolved. Finally the Company will provide customers with
feedback on the handling results and implement follow-up and complaint tracking to ensure customer satis-
faction and continuous service quality improvement.
6970
Forwarding
the issueAdvancing Life Science Tools
Message From About MGI Tech Sustainable Development Leading Life Science for Future Healthcare Leader in Compliance Value Growth Guardian of Our Appendices
Chairman Transform Innovation Governance Partner Environment
Quality improvement initiatives to enhance customer service
Skill assessment Case Upgrading the Customer Experience Center's Capabilities
Capability assurance
In June 2024 MGI Tech officially inaugurated its new European headquarters in Berlin Germany. The headquar-
ters covers an area of more than 600 square meters and is equipped with MGI Tech's most advanced technolo-
gies and products. It includes a dedicated Customer Experience Center (CEC) and a cutting-edge DCS Lab and
its functions will be further expanded in the future. Additionally this new headquarters will serve as an early
experience and testing base for MGI Tech's new technologies and products providing enhanced support and
Product optimization Structured support
Service enhancement Refined system service to European partners and customers.Personnel Problems The Customer Experience Center at this new headquarters features MGI Tech's most cutting-edge technology
Engineer qualification assessment A structured support system platform and product portfolio serving as a dedicated hub for European researchers and scientists to explore
Training system for product Enhanced feedback complaint and experience the Company's groundbreaking life science innovations. The Center is equipped to support DNA
implementation and issue resolution mechanisms Omics Cell Omics and Spatial Omics offering tailored response support that aligns with the specific research
project needs of our customers and partners. The Center will offer both internal and external training while also
providing support for application development projects undertaken by MGI Tech's partners and research institu-
tions. Through tailored training demonstrations and hands-on experiences visitors can unlock the limitless
Product possibilities of developing personalized multi-omics tools powered by DNBSEQ technology.Customization
Comprehensive product Customized product
portfolio portfolio & projects
Third-party integration Service quality Project design
New product support enhancement Project acquisition and The Company regularly conducts satisfaction surveys and loyalty
management assessments tailored to the specific needs of different customer
MGI’s customer service quality enhancement system segments. Utilizing a five-point scale these surveys are conducted
quarterly or semi-annually. The results are analyzed shared with
pertinent departments and used collaboratively to devise improve-
ment strategies. The customer service center continuously monitors
the progress of these improvements and their implementation.MGI Tech's Customer Service Center continuously promotes custom-
E NI L NO
This year the Company hosted a total of 267 professional training sessions which drew 1519 participants and er satisfaction surveys to objectively assess satisfaction across
spanned over 3000 hours. We carefully designed multidimensional learning paths from professional technical services. This highlights our focus on feedback and is key to optimiz-
ing services and enhancing customer experience. Regular surveys
training (FSE) to functional training (FAS&FBS). Among these there were 137 FSE training sessions which covered
gather feedback and suggestions relayed to R&D production and In 2024 the company's customer
519 individuals and totaled 2616 hours of training. Additionally there were 130 FAS&FBS training sessions marketing aiding continuous service quality improvement. Addition- satisfaction survey score
benefiting 1000 employees with a total training duration of more than 390 hours. ally a self-service window on the official website provides conve-
nient online support FAQs and self-service options allowing was98.3 points
anytime anywhere access to information and support. This signifi-
cantly boosts accessibility and response speed further enhancing
the customer service experience.Our training system adheres to the open philosophy of collaborative growth with upstream and downstream partners
focusing on empowering the partner ecosystem. To support our global service network we have established a global
knowledge-sharing network comprised of 92 in-house lecturers from Asia Pacific China Europe Africa and the Americas.Leveraging this lecturer resource we provide diverse training to agents and partners effectively enhancing their product
and service capabilities and jointly promoting business growth.
71 72Advancing Life Science Tools
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Sustainable Supply Chain In 2024
Number of manufacturers reviewed Audit completion rate Total number of suppliers
MGI Tech prioritizes the sustainable supply chain by developing a 'Trinity' management system that seamlessly integrates 275 Manufacturers 100% 745 Manufacturers
compliant procurement eco-friendly construction and reliable supply operations. Through digital empowerment the
Company ensures transparency and efficient management across the full lifecycle of the supplier while strictly adhering Number of suppliers with ISO 9001 quality management Number of suppliers with ISO 13485 quality management
to both domestic and international compliance requirements. MGI Tech continually optimizes resource utilization across system certification 220 Manufacturers system certification 53 Manufacturers
procurement production logistics and other areas fostering green and low-carbon development. It views the sustainable Number of suppliers with ISO 14001 Environmental Manage- Number of suppliers with ISO 45001 quality management
supply chain as a strategic cornerstone for driving its technological innovation and long-term growth. ment System Certification 27 Manufacturers system certification 7 Manufacturers
Compliance Procurement Management
Building a Sustainable Ecosystem
MGI Tech is committed to ethical procurement practices embracing the principles of legality compliance and integrity.The Company has established independent supplier management structures at both its headquarters and regional/fac- MGI Tech wholeheartedly pursues sustainable development incorporating environmental protection energy conservation and
tory levels to streamline supply chain operations. emission reduction across all aspects of its business operation through comprehensive green supply chain management. The
Company is dedicated to creating a smart efficient and eco-friendly supply chain ecosystem.To regulate supplier management and ensure supply chain sustainability MGI Tech has instituted protocols such as the
Supplier Management Procedure Supplier Material Change Management Specification and Supplier Quality Manage- In terms of localized procurement the Company consistently promotes the development of regional localized resources. In 2024
ment Specification which assess suppliers based on criteria including product quality safety practices and procurement over 84% of its production procurement came from local suppliers. In 2025 the Company will continue to drive its supply chain
management. In addition suppliers are required to complete documents such as the Supplier Survey Form sign the localization strategy aiming to achieve a localization rate of over 90% for its production procurement. In Wuhan and Qingdao the
Supplier Supply Chain Security Letter and the MGI Anti-Commercial Bribery Commitment. Ethical conduct reminders are Company has established a 4-hour procurement cycle for major materials covering key materials such as packing boxes sheet
issued during significant holidays emphasizing adherence to business ethics. Furthermore MGI Tech expects all its metal foam boxes instruction manuals dry ice and nitrogen. This has resulted in substantial enhancements to quality delivery
procurement staff to strictly adhere to the Procurement Code of Conduct. timeliness and cost control. In addition the Company has established nine international warehouses in Singapore and in cities like
Shenzhen Wuhan Hong Kong Frankfurt Riga San Jose and Melbourne to cater to customers' occasional and ad-hoc purchasing
Supply Chain Management needs as well as their spare parts storage needs further improving the sustainability and responsiveness of our supply chain.Supplier admission Regular supplier Supplier withdrawal In 2024 the Company achieved that over 84% of its production procurement came from regionalized suppliers. In
performance evaluation 2025 the Company will continue to drive its supply chain localization strategy aiming to achieve a localization rate of
over 90% for its production procurement.MGI Tech conducts a Conduct quarterly perfor- In cases where a supplier
comprehensive preliminary mance evaluations of consistently fails to meet Additionally the Company is actively driving green transformation in both packaging and transportation. For the cold chain in
evaluation of potential suppliers with assessment MGI's criteria or experiences China the Company has fully embraced the use of reusable insulated boxes. In international transportation the Company has
suppliers assessing their criteria including but not a prolonged decline in innovatively introduced compact insulated boxes to minimize resource waste and strongly support sustainable operations. Green
company qualifications limited to quality delivery performance we will initiate transportation is also a key driver of the Company's sustainable development. The Company has fully adopted new energy
quality control systems time service and cost. By our withdrawal process. This vehicles for all its cold chain less-than-truckload business in China and prioritized the shift to rail transportation with high-speed
delivery speed responsive- setting clear evaluation includes providing advance and conventional rail freight accounting for 70% of the total freight. In international transportation the Company prioritizes direct
ness technical capabilities metrics and challenging notification to the supplier flights to enhance efficiency and minimize carbon emissions.and price competitiveness. targets we motivate offering opportunities for
Suppliers meeting MGI's suppliers to continuously corrective action and In 2024 the Company actively promoted the development of IT systems including the implementation of electronic signatures
standards undergo on-site improve their performance strategically planning for and further realizing paperless ordering. Training was also provided to suppliers on the use of electronic signatures and SRM
evaluations by dedicated and delivery quality. replacements. systems. Furthermore at the beginning of the year the Company held a supplier conference delivering presentations to suppliers
teams to ensure their ability on various aspects such as procurement quality delivery and integrity. Tailored training was also provided based on supplier
to fulfill our requirements.In 2024 MGI Tech trained 680 people across 20 sessions focusing on supply chain management and strategic
During the admission stage the supplied materials are categorized by importance as A B and C based on MGI Tech's procurement with the goal of building a learning-driven procurement organization. In addition the Company held 24
needs. MGI Tech conducts evaluations and audits of suppliers to assess their qualifications systems delivery capabilities meetings on supplier communication and evaluation to strengthen strategic collaboration drive quality improvement
compliance with laws and safety standards etc. ensuring that their delivery capabilities meet MGI Tech's requirements. and sustainable development and comprehensively enhance procurement management capabilities.MGI Tech also performs annual on-site audits of its A-level suppliers as well as B-level suppliers involving large coopera-
tion fund amounts to ensure the reliability of their production processes. Moreover MGI Tech performs quarterly supplier
performance reviews tracks their supply performance and oversees any necessary corrective actions. Looking ahead MGI Tech will implement an open and forward-thinking supply chain strategy coordinate localized resources and
its overseas layout enhance its global information platform advance the development of SRM WMS TMS systems and drive
During the reporting period MGI Tech reported a 98.34% pass rate for incoming materials with reagents at 98.58% and digital transformation. The Company will regularly host Supplier Communication Conference to share its strategic goals with
chips at 97.34%.Overall 97.3% of deliveries were on time. Domestic logistics reached 92.8%; spare parts logistics led the suppliers and deepen mutual trust and cooperation. The Company will collaborate with suppliers to build a sustainable supply
pack with a 99.1% timeliness rate. chain and achieve synergy and win-win outcomes through localization informatization and global layout.
73 74Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Lead er in Compliance
Governance
Sound corporate governance is not only crucial for MGI Tech's robust operational performance but also
provides a solid foundation for comprehensively preventing and controlling compliance risks. MGI Tech
consistently adheres to the laws regulations and requirements stipulated by the China Securities
Regulatory Commission and the Shanghai Stock Exchange. Guided by a strong commitment to business
ethics the Company upholds higher standards for it standardized business operation and makes every
effort to maintain its excellent reputation and image. Through unremitting efforts MGI Tech is dedicated
to collaborating with shareholders to share the fruits of corporate development and achieve steady and
sustained growth.
2035 Plan
To proactively apply for management system certifications such as ISO 27001 ISO
27701 and ISO 37301
To organize annual internal control inspections and special risk mitigation activities
To establish a sustainable stable and scientific return mechanism for investors
To pay taxes in accordance with the law and eliminate any tax violations
To streamline operations and to develop industry-leading management and risk
prevention capabilities
To train all employees on anti-corruption and corruption-free business practices
This chapter responds to SDGs
75 76Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Corporate Governance
MGI Tech rigorously complies with laws and regulations including the Company Law of the People's Republic of China and the
Securities Law of the People's Republic of China as well as regulatory requirements such as the Code of Corporate Governance The composition and size of the Board of Supervisors shall adhere to all applicable laws and regulations.for Listed Companies in China and the Rules Governing the Listing of Stocks on Shanghai Stock Exchange. The Company has In daily performance of duties the Board of Supervisors shall convene and hold meetings in accor-
established a robust corporate governance framework and optimized its information disclosure and investor management Board of Supervisors dance with regulations to ensure the effective exercise of supervisory functions. In addition the Compa-
practices with the goal of standardizing business operations and laying a solid foundation for sustainable growth. ny's supervisors shall actively participate in the corporate governance process. Regarding the Share-
holders' Meeting and the meeting of the Board of Directors the supervisors shall attend on time and
supervise the Company's major decisions and operations with a rigorous and responsible attitude
Governance Structure providing safeguards for the standardized operation of the Company.In strict accordance with the laws and regulations the Company has established a corporate governance structure. This struc-
ture features the Shareholders' Meeting as the supreme authority the Board of Directors as the central decision-making body 2024 Data
and the Board of Supervisors as the supervisory safeguard. Under the Board of Directors specialized committees for strategy
and investment audit compensation and evaluation and nomination work together to provide robust support for the Compa- Number of board meetings held Number of meetings held for the Audit Committee
ny's sustainable development.
7 Session 6 Session
Shareholders'
Meeting
Number of meetings held for the Remuneration Number of meetings held for the Special
Board of Supervisors and Assessment Committee Committee of Independent Directors
4 Session 4 Session
Board of Directors
Investor Relations Management
Strategy and Investment Audit Committee Remuneration and Nomination
Committee Appraisal Committee Committee MGI Tech attaches great importance to compliant operation and information exchange strictly abides by the Rules Governing
the Listing of Stocks on Shanghai Stock Exchange and the Measures for the Administration of Information Disclosure and builds
Each institution has clear and defined responsibilities. The Shareholders' Meeting holds significant decision-making authority and continuously improves its internal information disclosure system and process system. The Company's audit mechanism
while the Board of Directors is responsible for strategic decision-making and overseeing the Company's daily operations. The ensures that information is of the highest quality from the source guaranteeing that publicly disclosed information is authentic
Board of Supervisors independently carries out its supervisory duties. Specialized committees provide professional support for accurate complete timely fair concise clear and easy to understand. This fully meets the information needs of both the
the decision-making of the Board of Directors. Powers and responsibilities are exercised in a statutory and transparent manner. market and investors.This setup promotes coordinated operations across different departments of the Company ultimately forming an effective and
balanced governance structure. In investor relations management MGI Tech actively innovates communication models by leveraging the convenience of
"E-SSE" platform. On the one hand the Company takes into account the depth of in-person research events the intuitiveness
The Shareholders' Meeting shall be convened and held in strict compliance with the Rules for Share- of virtual roadshows and the professionalism of broker strategy sessions. On the other hand the Company integrates multiple
holders' Meetings of Listed Companies and the Company's Articles of Association. On the basis of channels such as phone its own official website and email. Through these combined measures the Company constructs a
Shareholders' ensuring the legal and effective operation of the Shareholders' Meeting the Company shall attach great comprehensive and multi-level communication bridge and fosters ongoing interaction and communication with both current
Meeting importance to the equality of shareholders' rights and interests especially giving full attention to minori- and prospective investors ultimately enhancing understanding and trust in the Company across all stakeholders. In 2024 the
ty shareholders and ensuring their equal standing with major shareholders. The Company shall respect Company had maintained a record of accurate disclosures with no instances requiring correction.and value the inputs of all shareholders and be committed to fostering a fair just and transparent
decision-making environment.
2024 Data
The Board of Directors shall adhere to the laws and regulations such as the Company Law of the
People's Republic of China as well as the Company's Rules of Procedures of the Board of Directors Number of investor communication Number of institutional Total number of
and perform its duties rigorously. events hosted investor visits institutes visits
Board of Directors 83 Sessions 730 People 455 InstitutesThe Board of Directors is composed of 10 members including 4 independent directors and 2 female
directors. These directors have expertise across multiple industry sectors combining deep professional
knowledge with extensive experience in enterprise management. Their diverse knowledge and experi- Number of inquiries addressed Query resolution rate on Number of public
ence complement each other providing solid support for the Company's strategic decision-making on "E-SSE" platform "E-SSE" platform disclosures issued
and effectively promoting the stable and long-term development of the Company. 28 Inquiries 100% 155 Pieces
77 78Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Operational Compliance
MGI Tech is fully aware that compliance and responsibility are the cornerstone of achieving steady and sustainable company
growth. We not only strictly abide by laws regulations and industry standards to ensure that every business activity is compliant and MGI Tech actively expands overseas markets and strictly abides by local laws and regulations. In response to critical areas like export
legal but also regard compliance as the key to safeguarding our corporate reputation and winning the trust of all parties. This is not control personal privacy protection and anti-commercial bribery the Company has formulated a comprehensive set of rigorous
only for self-protection but also a responsibility and commitment to customers partners and all stakeholders. internal system documents. By implementing clear code of conduct and stringent review processes the Company effectively
mitigates potential risks and losses providing solid guarantees for the sustainable development of overseas markets. In the mean-
time MGI Tech maintains regular communication with regulatory authorities in different places to ensure that we are well aware of
Compliance Management System compliance requirements of local markets.To realize operational compliance MGI Tech integrates internal control with compliance requirements closely and identifies In addition we have established a multi-channel communication and reporting mechanism in our cooperation with local suppliers
and manages business risks systematically using the five factors of the COSO internal control framework. In order to improve and partners. This mechanism not only defines our compliance requirements and responsibilities in local markets clearly but also
management efficiency and ensure operational compliance comprehensively the Company has formulated a series of ensures that everyone from grassroots employees to executives can deeply understand and strictly comply with the compliance
management policies to integrate internal control with compliance requirements deeply including the Internal Control requirements through training and policy publicity. In this way MGI Tech has established a good corporate image of being credible
Management Procedure and the Daily Internal Control Inspection and Reporting Standards. This provides substantial institu- and responsible creating favorable conditions for further expanding overseas businesses and deepening international market
tional support for business operations and ensures the achievement of business goals and the effective implementation of presence.policies and guidelines. We are committed to evaluating the effectiveness of compliance management regularly monitoring participation in compliance
Using the COSO internal control framework we comprehensively manage corporate operational risks by focusing on five key training and collecting employee feedback on the compliance reporting mechanism regularly. These qualitative evaluation meth-
elements: control environment risk assessment control activities information and communication and monitoring. ods ensure the smooth operation of every aspect under compliance management while multidimensional evaluation methods
improve the transparency of compliance management and help to identify and solve potential problems timely thereby optimizing
our compliance system continually.Specific Content of Five Key Elements of Internal Control in MGI Tech
Internal Control Risk assessment
Improve governance structure and formulate rules of procedure
and detailed working rules Build a risk assessment system and
monitor various risks 2024 Data
Strengthen the development of corporate culture and cultivate
values and risk awareness Collect information identify analyze and Number of internal control inspections
Develop human resources policies that cover all aspects of respond to risks and develop a risk 11 Times
employee management control matrix
Strengthen internal auditing and ensure the independence of Choose response strategies based on the
personnel and work risk situation and adjust them in a timely
manner
Control Activities
Use a combination of control measures to mitigate risks Information and Communication
Covering all operational processes establish management Establish an information transmission and
systems and procedures reporting system and collect internal and
Strengthen control over subsidiaries and key activities external information
Create an Internal Control Manual to facilitate internal control Standardize information disclosure
management and evaluation management and ensure information
quality
Monitoring
Clarify the norms of anti-fraud work and
Set up relevant systems and implement a checks and balances prevent fraudulent behavior
framework to ensure effective oversight
The Audit and Risk Control Department conducts audit work and Establish a dedicated reporting line and
issues reports protect and encourage whistleblowers
Organize annual internal control self-assessment and disclose the
evaluation report
79 80Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Anti-commercial Bribery and Anti-corruption
MGI Tech has put in place a series of systems such as the Anti-commercial Bribery Management Procedure the Internal
Supervision Management Procedures the Red Line Management Regulations and the Integrity Incentive and Rewarding Reporting Management Process
Measures which clarify the code of conduct from multiple dimensions making internal supervision management reporting
and case investigation procedures rules-based and greatly reducing business risks.On this basis the Company has estab- Email Report: 19537955110@mgi-tech.com
lished a dedicated Integrity Portal as a distinctive platform which helps employees thoroughly understand business ethics and
Phone Report (same number for WeChat): +86 19537955110
compliance requirements through internal publicity and professional training and let the sense of integrity gain broader
support. Reporting Reporting via Letter or In-Person: Address: Room 805 8th Floor Building 11 Beishan Industrial Zone
methods Yantian District Shenzhen China.In 2024 the Company conducted integrity education in an innovative manner and an annual integrity examination to promote
Reporters may choose to report in-person or through other appropriate methods as deemed
learning and test and strengthen employees' mastery of integrity knowledge. suitable.To ensure smooth supervision channels we have put in place a robust internal complaint and reporting mechanism providing
employees with a safe and anonymous reporting channel encouraging everyone to boldly say "no" to improper behavior and
weaving a dense protective net for internal supervision of the enterprise. Reporters must provide accurate and valid information and evidence including specific details
about the individual involved.In addition MGI Tech actively participates in advancing industry self-discipline and joins organizations such as the Anti-Fraud Confirmation of receipt will be given within 3 days and the whistleblower will be confidentially
Alliance and the Trust and Integrity Enterprise Alliance. The Company strictly implements the blacklist system and shares Reporting notified of the receipt of their report.information on violators with industry partners and external associations in a timely manner working together to elevate ethical procedure
Internal investigations will be conducted in accordance with the Whistleblowing and Case
standards across the entire industry. The Company also engages in regular dialogues with stakeholders such as agents Investigation Standards and other relevant institutional procedures. Feedback on the investiga-
customers investors and suppliers. By signing integrity commitments with these stakeholders the Company demonstrates its tion results will be provided within 3 months.firm determination in business ethics incorruptibility and self-discipline through practical actions.The Company is committed to protecting the identity of whistleblowers ensuring that their
2024 Data Whistblower information remains confidential..
management Whistleblowers will be rewarded based on the quality of clues and the validity of evidence
Number of employees participating Integrity training employee provided following a tiered system.in the annual integrity examination coverage rate
2233 People 85%
81 82Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Combat Unfair Competition Responsible Marketing
MGI Tech strictly adheres to the Anti-Monopoly Law of the People's Republic of China and other relevant legal regulations MGI Tech adheres strictly to pertinent laws and regulations governing marketing activities. To ensure compliance we have
to ensure compliant business operations. The Company is dedicated to developing and continuously improving its com- established internal systems such as the Management Standards for Marketing Promotion Methods and Content the
petition compliance management system. This involves creating a professional compliance team employing advanced Guidelines for Legal Risk Warning of External Communication and the Guidelines for Compliance Risk Warning of Market-
risk assessment techniques and implementing whole-process controls to prevent market monopoly practices for the ing Promotion Activities. The Legal Department shall review all promotional content in external communication materials
purpose of ensuring that all actions of the Company never cross the legal red line. Additionally we place a strong empha- ensuring it complies with advertising laws and doesn't risk infringing on intellectual property to meet publicity regulations.sis on fostering employees' awareness of compliance. To achieve this we regularly conduct professional training sessions Furthermore in order to effectively enhance employees' awareness of responsible marketing we conduct irregular
offer detailed guidance and advice on anti-unfair competition practices and work to deeply embed compliance princi- responsible marketing training for our marketing personnel so that they can consciously integrate compliance concepts
ples into the mindset of every employee. This proactive approach helps us prevent unfair competition at its root. By the into every marketing activity and communication with customers in their daily work. In 2024 the Company was free of any
end of 2024 the Company had not been involved in any anti-monopoly legal proceedings or engaged in any unfair com- violation concerning the branding of products and services.petitive practices. It has built a highly compliant business operation model within the industry effectively promoting the
healthy and orderly development of the industry.Anti-monopoly Measures Taken by the Company
Compliance management personnel evaluate investment transactions to determine if
they meet the criteria for concentration of undertakings as defined by the Anti-Monopoly
External Law. This assessment considers various factors including the transaction structure
investment post-transaction shareholding voting rights and board appointments. They also ascer-
tain whether the transaction qualifies for an exemption. Should a declaration be neces-
sary the Company will submit it to the anti-monopoly enforcement agency before
proceeding with the investment activities upon receiving approval.Marketing Activity Training Photo
Tax Compliance
MGI Tech strictly adheres to domestic laws and regulations such as the Law of the People's Republic of China on the
Compliance officers scrutinize contracts to ensure they do not lead to the exclusion or
Administration of Tax Collection the Provisional Regulations of the People's Republic of China on Value-Added Tax the
General restriction of competition thereby preventing the formation of horizontal or vertical Law of the People's Republic of China on Enterprise Income Tax and the Law of the People's Republic of China on Individu-
business monopolistic agreements. Contractual product prices must align with the Company's al Income Tax as well as relevant tax policies in various countries and regions and has established a sound tax manage-
contracts established pricing system. In instances of low pricing an explanation citing special ment system. Within the Company specialized departments implement whole-process and refined monitoring and man-
circumstances is required along with obtaining approval from the relevant company
agement of tax affairs. By regularly conducting tax risk assessments and audits and identifying potential risks in a timely
authority. This process is designed to prevent market dumping and protect the legitimate
manner the Company ensures the standardization and compliance of tax management. Moreover the Company
rights and interests of both operators and consumers.attaches great importance to internal tax education and publicity continuously strengthens employees' tax awareness
and compliance awareness integrates tax compliance awareness into corporate culture and makes every employee a
firm practitioner of paying taxes in accordance with the law.MGI Tech actively complies with the regulatory requirements of national and regional tax authorities proactively and
accurately reports various tax information and strictly adheres to the principles of timely and accurate tax reporting. At
Signing agree- Compliance officers pay close attention to reviewing agreements with suppliers and every step of handling tax matters we adhere strictly to regulations demonstrating strong self-discipline and a deep
ments with customers to ensure they do not contain provisions that fix resale prices to third parties sense of responsibility. We are committed to eliminating any violations of tax laws and regulations establishing a good
upstream or set minimum resale prices. This vigilance helps safeguard consumer rights and uphold corporate image of paying taxes in accordance with the law and contributing solid strength to the stable development
suppliers and fair competition in the marketplace. Additionally the Company performs regular internal of national and local tax undertakings.downstream audits to identify and address any issues related to the internal operations of the
customers business further reinforcing the commitment to fair competition and legal compliance.
2024 Data
Total amount of taxes paid by the Company 291.4 million yuan
83 84Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Risk Management
MGI Tech has always adhered to the philosophy of forward-looking risk management established a systematic risk identi-
In response to potential risk events the Company rigorously implements a com-
fication and control framework and promoted holistic risk prevention and control. By investigating and evaluating the 2024 Data
prehensive risk management procedure. This procedure encompasses risk
potential risks in business cooperation and investment decisions the Company continuously standardizes its business
identification and assessment risk response and governance risk monitoring Risk management training
practices enhances employees' risk awareness and capabilities and fosters its sustainable stable and healthy growth.and reporting and other key areas. It is implemented through close collaboration
Based on this foundation the Company has developed Risk Control Implementation Management Standards establish- 2 Sessions
among multiple functional departments including the risk control team various
ing a scientific and comprehensive risk management system. In consideration of its unique characteristics and the exter-
departments and subsidiaries and the director of the audit and risk control
nal environment the Company has established three lines of defense aiming to promptly identify analyze and normalize
center. To address identified major risks the Company develops tailored risk
the management of risks thereby promoting comprehensive multi-level risk control across the entire business chain. This
control strategies and utilizes risk lists and control matrices to systematically
mechanism enables the Company to achieve anticipatory control real-time monitoring and effective handling of poten-
manage risks within business processes. This approach effectively enhances the
tial risks providing solid support for consolidating the foundation for risk control.Company's ability to respond to risks ensuring its sustainable and healthy devel-
opment.Risk Management Structure
Risk Control Management Procedure
Bearing the ultimate responsibility
for risk management and internal Board of Directors
Decision-making control
Level
Overseeing the establishment Audit and Risk
and implementation of risk and Audit Committee
control systems Control Department
Collect risk infomation Review andimprove Determine the scope of risk
and conduct riskiden- the risk database assessment andthe assessment
tification and reporting work arrangement
Management Management Supervising the daily risk management and internal control work
Execution Owners and those Supporting coordinating and assisting in the
Conducting independent Develop a Decide whether to Analyze the assess-
accountable for risk implementation of internal control and risk assessment of the effective-
Level and internal control response measures ness of the first and second
specialized risk launch a special ment results and
lines of defense response plan riskm anagement preparethe risk
proj ect assessment report
Business Departments Legal Department Risk Control Internal Audit/Integrity Department Team
Responsibility: Primary Coordination: Managing high-risk matters across Work: Conducting post-event
responsible party for internal different processes and domains investigations and
control establishing a deterrent effect Lead the risk gove- Establish and monitor Daily risk event
Job: Establishing and promoting risk control mance according to risk waming indi cators monitoring
Process: Ensuring methodology focusing on in-process supervision Role: Providing independent
compliance in both assessment and supervision the plan
procedural and substantive Role: Serving as a helping hand to the business
aspects department without meddling in their affairs
Role: Creating value and
effectively managing
internal control
First line of defense Second line of defense Third line of defense Prepare the risk
(Execution) (Supervision) (Auditing) monitoring report
85 86Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Data Security and Privacy Protection
Information security and product data security are the core cornerstones for the Company to move forward steadily in the
digital age and they are vital for building customer trust and fostering sustainable business development. MGI Tech Information Assurance and Risk Management
seamlessly integrates regulatory compliance with security management and strictly adheres to both domestic and
international laws and regulations regarding information security and privacy protection. The Company utilizes advanced
MGI Tech adopts a multi-pronged approach in privacy protection considerations of information security elements and
management frameworks and cutting-edge technological means to comprehensively safeguard data security. In terms
data protection for product iteration. The Company has established a robust foundation for information security by devel-
of information security the Company has developed a sound system that encompasses building a management struc-
oping stringent locally tailored privacy protection procedures clarifying the concept of biometric information security in
ture establishing a certification system responding to risks and cultivating a culture focused on information security for
line with regulations actively tackling product certification challenges and exploring innovative data security solutions.the purpose of thoroughly mitigating information security risks. In terms of product data security the Company starts from
However information security challenges are relentless with constant threats from unauthorized access external cyberat-
the design source enhances its security capabilities develops sophisticated risk prevention measures engages authori-
tacks risks of data breaches and third-party risks always lurking. To effectively safeguard information security MGI Tech
tative third-parties for testing and certification and builds a solid defense line for product security ensuring reliable prod-
is proactively addressing these risks with unwavering resolve and expert strategies.ucts and services for users in complex security environments.Information Security Information
Security Risks Response Measures Results
In order "To Develop and Promote Advanced Life Science Tools for Future Healthcare" MGI Tech shoulders a significant
mission and responsibility in the field of information security. The Company strictly adheres to the Cybersecurity Law of
the People's Republic of China Personal Information Protection Law Data Security Law EU GDPR requirements and other Adopt strict access control mechanisms conduct unique Effectively reduced the
pertinent laws and regulations across various jurisdictions. MGI Tech has instituted internal management systems includ- identity identification and strong complexity authentication
for users and regularly updating authentication information probability of unauthorized ing the Information Asset Identification and Risk Assessment Guide and Information Security Operations and Mainte- access improved access
nance Management Procedures for the purpose of effectively safeguarding digital assets throughout their entire life cycle Set up rules for account lockouts after multiple failed login security and ensured that
from source to end and eliminating any potential security risks. Unauthorized attempts establish a comprehensive account permission information assets were not
access
In terms of building management structure MGI Tech has established the Information Security Committee with the Com- management system standardize account full life cycle illegally obtained
pany's general manager serving as the director of the Information Security Management Committee responsible for management and regularly review permissions
coordinating information security strategic direction and major decisions. The Company has established a cross-depart- Significantly reduced the
mental collaborative mechanism to promote the implementation of information security from headquarters to Comprehensively deploy firewalls intrusion detection success rate of cyberattacks
system/region at all levels. Through scientific organizational design and division of responsibilities we achieve vertical systems (IDS) intrusion prevention systems (IPS) and enhanced proactive aware-
management and efficient collaboration of information security work ensuring that information security strategies can be antivirus software to build a multi-level defense system ness of potential vulnerabilities
accurately and quickly implemented. and threats achieved rapid
External Continuously conduct vulnerability scanning and repair response and handling of
In terms of certification system construction MGI Tech actively aligns with advanced international and domestic Cyberattacks management and update system patches in a timely security incidents and
standards and has obtained multiple certifications such as the ISO/IEC 27701:2019 for Privacy Information Management manner reduced the impact of security
Systems ISO/IEC 27001:2013 for Information Security Management Systems and GB/T 22239-2019 for Information security incidents
technology — Baseline for classified protection of cybersecurity. The Company uses regular security audits as an effective Encrypt sensitive data for storage and transmission and set
means to dynamically evaluate and calibrate information security measures ensuring that the Company's information strict data access permissions Reduced the possibility of
security management system always conforms to and even leads the industry's highest standards. By the end of 2024 data breaches responded
MGI Tech's information security management system had successfully passed the SGS security and privacy certification Regularly conduct data security audits to promptly identify quickly in the event of a data
surveillance audit. potential risks of data breaches breach minimized losses
Risks of Data
External Certifications Obtained Breaches Develop emergency plans for data breaches and define
caused by data breaches
emergency response procedures and division of responsi- and protected user privacy
ISO 27001 Information Security Management System bilities and corporate reputation
Certification for various sites including SHENZHEN
(MGI IMABOT) Wuhan MGI Qingdao (MGI EGI Standardized supplier
Establish a comprehensive supplier security assessment
Hua'ao DGI) IMABOT KUNSHAN and Latvia MGI management processes
and monitoring mechanism and conduct a comprehensive effectively reduced security
security review on third-party suppliers before cooperation risks caused by third parties
Third-party Sign a clear security agreement during cooperation define
enhanced security control
ISO 27701 Privacy Information Management System
Risks the security responsibilities and obligations of both parties
over third-party partners and
Certification for Latvia MGI and continuously monitor their security practices ensured supply chain
information security
MGI security & privacy system certifications
87 88Leader in Compliance
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Governance Value Growth Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Partner Environment
Product Data Security
Information Security Culture Development
In the field of product security MGI Tech strictly adheres to the Guiding Principles for the Registration Review of Medical
Device Cybersecurity in China EU GDPR requirements and pertinent regional laws and regulations comprehensively
MGI Tech has developed clear concise and easy-to-follow information security policies and procedures ensuring that all ensures product security and safeguards the rights and interests of data subjects. To implement these high-standard
employees grasp key points of operation. At the same time the Company vigorously promotes the development of regulatory requirements MGI Tech has established a sound and comprehensive product data and privacy protection
information security culture and adopts various methods to enhance employees' safety awareness and team response system from the source of product design covering multiple aspects such as management procedures for product data
capabilities. and privacy protection processes for responding to data subject rights confidentiality systems and privacy policies
In terms of employee training MGI Tech conducts annual online information security training and examinations covering ensuring that data strictly follows the principles of legality fairness and transparency throughout the entire lifecycle of its
all employees. The training content is rich and practical including basic information security knowledge internal security collection transmission storage and destruction.regulations of the Company key points on daily office security software authorization and security usage methods etc.aiming to enhance employees' awareness of information security reduce security risks caused by human negligence and
enhance overall information security literacy.Product Security Capability Building
To enhance the practical capabilities of the security team the Company regularly organizes phishing drills and invites
professional third-party security service agencies to simulate cyberattacks every year. Through these drills in real-life
scenarios security personnel can better respond to actual cyberattacks and also verify the effectiveness of the Compa- MGI Tech always complies with regulatory requirements and is committed to delivering reliable and safe products to its
ny's existing security measures for timely improvement. users. During the R&D process of a product the Company has carefully developed network research materials in strict
accordance with the Guiding Principles for the Registration Review of Medical Device Cybersecurity and conducted a
In 2024 the Company completed drafts of important industry documents such as the Guidelines for the Network Security comprehensive evaluation on the product covering multiple aspects such as network security capabilities network secu-
Risk Assessment and Testing of Gene Sequencers and the Research Report on Gene Sequencing Data Security by work- rity patches and vulnerabilities and security protection software.ing closely with authoritative organizations such as the China Academy of Information and Communications Technology
the National Center of Standards Evaluation (Standards Evaluation Center) and the Center for Medical Device Evaluation
NMPA (Device Evaluation Center).In particular the Guidelines for the Network Security Risk Assessment and Testing of Gene Sequencers will become an Network security capability
important reference document for the network security registration and review of sequencers. The formulation of these Defined information about product software including its name model
documents establishes a clear network security guidance framework for the industry. While participating actively in joint specifications release version and security level;
standard building and contributing its expertise the Company internalizes high industry standards to improve its own
Identified usage scenarios and organized data flow diagrams and network
security capabilities and works together with all parties to promote the progress of industry security. interface diagrams;
In the future the Company will continue to deepen collaborative innovation with regulatory authorities drive global Analysis of the product's applicability to 22 network security capabilities
business expansion through technological compliance and strive to provide customers with safe and reliable life technol- detailing implementation methods for applicable capabilities and reasons
ogy core tools constantly. for inapplicability.
2024 Data
This year the Company did not receive any confirmed complaint related to infringement on customer privacy. Network security patches and vulnerability
management
Safety management software
Identified the required environment and the list of hard-
Shipment of the product with antivirus software ware and software necessary for running the software
activated by default in its initial configuration; and assessed the security status of the current version;
Comparison of the operational status of the Employed automated tools or engaged third-party
deployed software with and without the antivirus organizations to identify available patches and existing
feature enabled to verify compatibility; vulnerabilities of the product;
Routine maintenance and updating of the Definition of procedures for deploying patches and
anti-malware client version engine version addressing vulnerabilities determination of the severity of
antivirus library and anti-spyware library to vulnerabilities using the Common Vulnerability Scoring
maintain optimal security performance. System (CVSS) and the business model documentation
of the status of repaired and unrepaired vulnerabilities
and explanations for any unresolved vulnerabilities.
89 90Leader in Compliance
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Chairman Transform Innovation for Future Healthcare Partner Environment
Product Data Security Risk Defense Line
To further ensure the security of product data the Company has developed a series of rigorous implementation measures Third-Party Testing Products
around multiple key aspects such as product design data processing and business control. This ensures that regulatory
requirements are seamlessly integrated into every stage of the product process building a strong data security defense
line for users.Specific Measures for Product Data Security
Thoroughly optimize the product design process and fully and accurately embed GDPR
and regional cybersecurity regulations requirements in key links such as design input
testing and verification:
Clear data ownership: Clearly define the rights to control process and own genetic
data to ensure that MGI Tech does not involve in the ownership of related rights and
interests thus avoiding potential data risks;
Product Design
Operate independently in a local environment: The gene sequencer adopts a complete-
Security ly local operation mode eliminating the need for a network connection. This setup
Enhancement physically prevents unauthorized external access to data via the internet significantly
reducing the risk of data breaches;
Multiple security protections: The gene sequencer is not equipped with a wireless data
transmission module or card and its wired LAN port is limited to internal network
configuration. The USB port is dedicated to emergency data backups creating a robust
hardware security system that protects against data loss due to network failures or
other disruptions. Guiding Principles for Network Security Registration Review of Medical Devices: G99/T20/E25
Data Process- Comprehensively organize and optimize the full life cycle of data collection transmission
ing Compliance storage and destruction strictly comply with domestic and international regulatory
Management requirements ensure high compliance throughout every stage and eliminate any illegal operations in the data-processing process.Business Conduct in-depth interviews with core business departments and support departments involved in data processing comprehensively evaluate the current status of information
Department protection and accurately identify potential risks and optimization opportunities. Based on
Security Control the evaluation results develop and implement tailored compliance measures to ensure
that all departments strictly adhere to security standards during data processing.Additionally MGI actively engages professional third-party organizations to conduct comprehensive multi-level testing
and certification to ensure product security. Through rigorous testing processes and high-standard audit mechanisms
many of the Company's products have successfully passed the registration review with some even earning GDPR-Euro-
Prise certification. This international certification not only serves as a strong testament to the security and reliability of our GDPR-EuroPrise Certification: MGI ZTRON Appliance/Robotic Ultrasound System
products but also showcases MGI Tech's extensive expertise in global life sciences and product security assurance.
91 92Value Growth
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Partner Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Environment
Valu e Growth Partner
MGI Tech firmly believes that employees are its most valuable asset and is committed to becoming their
value growth partner. We uphold the "Three Good" Culture of "Stay Healthy Study Well and Work Hard"
which serves as our foundation. From equal and inclusive employment management to a comprehen-
sive compensation and benefits system every initiative reflects our respect and care for employees'
rights and interests. We are fully aware that the growth and development of our employees are crucial
so we have created a promotion ladder and a learning platform to help them advance steadily in their
careers. Meanwhile the health and safety of our employees are always our top concern so we have put
in place comprehensive security measures to provide them with a strong line of defense. We are always
striving for diversity and inclusiveness here. We firmly reject discrimination and prejudice ensuring every
employee can make the most of their abilities in a fair and welcoming environment. Most importantly
fulfilling social responsibilities is a shared mission for the Company and its employees. Together we
strive to become value growth partners and steadily advance towards our common goal of pursuing
development and enabling each other to succeed.
2035 Plan
Train 100000 genetic technology application talents in the next three years
with focus on rural revitalization areas.Employees will receive over 100000 hours of training annually.Eliminate all forms of discrimination and prejudice to ensure fair and unbiased
recruitment.Carry out caring activities for overseas and female employees every year.Make social insurance contributions timely and fully for all employees.
0 recordable case of occupational disease or Level III or above liability
accident.Conduct universal gene sequencing to benefit at least 10000 people annually. This chapter responds to SDGs
Carry out rural revitalization or public welfare donation activities every year.
93 94Value Growth
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Chairman Transform Innovation for Future Healthcare Governance Environment
Employee Employment and Management "Three Good" Culture
MGI Tech adheres to the principle of fair recruitment and prioritizes competencies ensuring fairness for all job applicants. The
Guided by the "Three Good" Culture of "Stay Healthy Study Well and Work Hard" MGI Tech is committed to fostering a vibrant
Company promotes the Three Good Culture of "Stay Healthy Study Well and Work Hard" focusing on the development of
and dynamic work environment. Here employees can showcase their sense of responsibility while fully unleashing their creativ-
employees' integrity competencies and performance while fostering a diverse and inclusive working environment free from all
ity and initiative.forms of discrimination. We have established a seamless communication mechanism that empowers employees to express
their opinions and suggestions through multiple channels ensuring that each employee's voice is heard and addressed. MGI We strongly believe that every employee is a unique individual who deserves respect and care. Through such environmental
Tech continually enhances its talent management system attracting and nurturing exceptional talent while offering employees shaping we have assembled a team of talented individuals brimming with energy and innovative spirit. This not only
a robust career development platform. This collaborative effort drives the Company's sustainable development. celebrates the intrinsic value of each person's life but also serves as a powerful testament to our unwavering commitment and
dedication to advancing the field of life sciences.Fair Recruitment
MGI Tech is fully aware that talent is the core engine of innovative development. The Company strictly adheres to the Labor Law
of the People's Republic of China the Labor Contract Law of the People's Republic of China and the Employment Promotion
Law of the People's Republic of China as well as the labor and employment legislation applicable within the jurisdictions where MGI's "Three Good" Philosophy
it operates. And it has established multiple management systems including the Recruitment Management Process the Talent
Introduction Management Procedure and the Internal Recommendation and Reward Management Standards and has
signed labor contracts with all its employees. Its overseas subsidiaries have also signed collective agreements with their
employees in accordance with local regulations. The Company strictly prohibits workplace discrimination child labor and
forced labor and embeds the protection of employees' rights and interests within its normative documents such as the Stay Healthy Study Well Work Hard
Employee Handbook. Furthermore the Company is dedicated to fostering a fair and inclusive working environment and Self-discipline: Maintain Proactivity: Engage in Self-driven: Focus on
offering employees a stable platform for career development. self-awareness proactivity proactive learning and ambitious goals and set
and resilience; control your scientific cognition; gain challenging objectives; take
2024 Data Total number of employees 2604 People diet and stay active; insight into the essence of responsibility collaborate
maintain passion and drive things and cultivate interdis- efficiently and execute
Number of male employees Number of female employees and uphold a positive ciplinary thinking; apply your precisely to ensure attitude even in adversity. knowledge to achieve successful results.
1482 People 1122 People Unit People tangible business outcomes.
Sorting by Sorting by
Sorting by
age area
education
background
30 years old and below 835 Chinese Mainland Hong Kong Bachelor's Degree or higher 2391
Macao and Taiwan 2085
31 to 40 years old 1380 Higher Vocational Education
Americas region 199 (HVE) Diploma 177
41 to 50 years old 298
Europe-Africa region 198 Vocational secondary
51 years old and above 91
Asia-Pacific region 122 education and below 36
MGI Tech has established a comprehensive talent introduction and training system to ensure the sustainable development of
its talent pipeline. In terms of talent introduction the Company has established a stable pipeline for recruiting talent through
two key channels: campus recruitment and social recruitment. In terms of campus recruitment the Company has formed
strategic partnerships with prestigious institutions like Tsinghua University and the University of the Chinese Academy of
Sciences. These collaborations enable early talent identification and reserve through joint training programs internships
professional competitions and other initiatives. In terms of social recruitment the Company leverages a variety of recruitment
channels to pinpoint and attract professional talents from diverse backgrounds. Furthermore the Company has established a
standardized recruitment process and evaluation system to guarantee fairness and professionalism in its talent selection
process. This systematic talent introduction mechanism continuously supplies the Company with high-quality talents support-
ing the long-term development of its business.
95 96Value Growth
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Chairman Transform Innovation for Future Healthcare Governance Environment
Democratic Communication and Diversity
MGI Tech adheres to the principle of putting people first fostering a harmonious work environment and developing a diverse
communication system. The Company has established a systematic employee communication and complaint mechanism to
ensure fair and transparent management. Employees can express their opinions through multiple channels including discus- Anti-gender Discrimination
sions with their direct supervisors filing written complaints or submitting disputes to the human resources department or trade
union. The Company rigorously scrutinizes decisions on rewards and punishments giving employees sufficient opportunities to
explain and defend themselves. If there are any objections to the disciplinary outcome employees may submit a written MGI Tech strictly implements anti-gender discrimination policies in talent management. In the recruitment process the
complaint within the specified timeframe. The relevant departments shall handle the matter in accordance with the law and Company ensures equal job opportunities for male and female candidates and provides equal career development platforms
regulations and provide feedback in a timely manner. This mechanism not only upholds the integrity of the management for all employees by establishing fair career advancement mechanisms and mechanism and career development channels.system but also protects the rights and interests of employees embodying the Company's people-oriented philosophy. We will continue to improve relevant systems promote gender equality in the workplace and build an inclusive working
environment.MGI Tech consistently prioritizes fostering a diverse equitable and inclusive workplace. The Company firmly commits to
eliminating discrimination based on gender age nationality religion disability and other factors in both recruitment and daily
operations. This ensures that all employees can work and flourish in a fair and respectful environment free from discrimination.Through these measures the Company has not only enhanced the fairness and effectiveness of its internal management but 2024 Data
also fostered common development with its employees.Number of female senior Proportion of female senior
management members management members
Supporting the Integration of Diverse Cultures 28 People 29.8%
Currently MGI Tech's workforce are spread across various overseas 2024 Data
countries including France Germany Latvia the United Kingdom
Singapore Japan India Indonesia South Korea and the United States.As MGI Tech pursues its goal of going global it embraces an open and Total number of overseas staff
inclusive approach eagerly incorporating the distinct cultural traditions 519 People
of different regions and fostering a blend of diverse cultures within the
Company. Furthermore in order to promote the internationalization
and innovative development of the Company we have developed a
diverse training system tailored to the needs and cultural differences of
various countries around the world. This approach enables us to unlock
their full potential while enhancing the Company's ability to perceive
and adapt to different markets and cultures.Case Team-Building Activities for Overseas Staff Case Overseas Employees Training
In 2024 some overseas companies of MGI Tech hosted employee events like the Double Ninth Health Festival In Australia the Company conducts internal cross-training sessions
MGI Tech Anniversary Celebration Family Day Team Building New Office Relocation Celebration Japan Cherry throughout the year. These sessions aim to deepen team members'
Blossom Festival and Free Meditation sessions. These events showcased the Company's commitment to understanding and integration of cross-system knowledge foster a
embracing diverse cultures and demonstrating care and respect for employees from varied backgrounds. strong workplace culture and enhance employees' professional compe-tencies.In 2024 the training combined the strengths of both internal and
external teams focusing on key areas like workplace skills market analy-
sis professional technology and product knowledge thereby compre-
hensively broadening employees' knowledge horizons and enhancing
team collaboration and business expansion capabilities.The training in Japan focuses on the specific needs of employees at
different stages of development. On the one hand the Company has set
up an online training platform to help employees with less than three
years of service better understand Japanese workplace culture and
business practices. The platform focuses on enhancing employees' com-
munication skills and helping new employees quickly integrate into the
local working environment. On the other hand the Company has
launched a "Self-health Care Training" program. This program covers
stress management teaches stress relief techniques and includes prac-
tical activities designed to enhance employees' physical and mental Visit communication and training activities for overseas employees
Scene photos from overseas staff team-building activities health as well as their self-management skills focusing on their
well-rounded personal development.
97 98Value Growth
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Partner Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Environment
Employee Compensation and Benefits Talent motivation
MGI Tech has developed a compensation and benefits system with genuine care and attention. The compensation structure
is thoughtfully designed to reflect job differences offering a diverse and reasonable structure. Honor awards and incentive
plans recognize and reward employees for their exceptional performance. The performance evaluation is impartial and MGI Tech has put in place diversified incentive mechanisms implemented regional policies tailored to local conditions and
communication and complaint channels are streamlined ensuring that employees' efforts are reflected in their earnings. In provided differentiated incentives based on employees' performance and development potential. This approach aims to
terms of benefits the Company adheres to regulations to ensure employees' vacation rights fully covers their social security consistently boost employees' sense of mission honor and internal motivation and foster a culture of high performance.and makes concerted efforts in healthcare living facilities and cultural and sports activities to provide comprehensive
support for employees. In particular the "MGI Mutual Aid" program offers employees confidence and support during In terms of honor incentives the Company has established an honor award system that includes both team and individual
challenging times. Here employees are always surrounded by a warm and supportive environment and they work together awards to acknowledge and commend teams and individuals who have excelled in their work.with the Company to create a brighter future.MGI Most Valuable Award (team award)
Employee Compensation
We commend teams which are guided by ambitious goals and which have achieved forward-looking breakthroughs
through organizational synergy and effective communication created outstanding performance brought significant
Compensation Structure value returns and effectively helped MGI Tech achieve significant events or special projects of "Blue Ocean Guiding and Red Ocean Revolution"
MGI Tech aligns closely with business development needs and has developed internal standard documents including the The 2024 MGI Most Valuable Award (team award) focus on four major areas:
Compensation and Performance Management Process and Compensation Management Procedures to establish a
comprehensive and systematic compensation system. The Company conducts a thorough analysis of its current business Continuously strengthen the core capabilities of functional departments to empower high-quality business
situation and benchmarks it against cutting-edge industry standards. Based on the characteristics of different positions it development. All functional teams achieved significant progress in strategic support business empowerment
tailors a reasonable compensation scheme that offers competitive remuneration packages comprising base pay cost-efficiency optimization and risk management guided by overarching objectives.allowances year-end bonuses sales incentives and special awards. DCS Lab Powers Global Cutting-Edge Life Science Research Initiatives. Rooted in localization we empower global
scientific research and public welfare foster collaborative ecosystems across disciplines and implement end-to-end
global practices integrating industry academia and research. MGI’s global footprint now includes 35 established DCS
Performance Evaluation and Complaint Labs worldwide.CycloneSEQ Launched Globally Kicking Off the SEQALL Initiative with Powerful New Momentum. Guided by the SEQALL
The performance evaluation and complaint mechanism of MGI Tech is an important tool to promote the achievement of the sequencing philosophy we have spearheaded industry innovation breakthroughs achieving record-high new
Company's strategic goals and foster the common development of employees. The Remuneration and Assessment installations of sequencers and maintaining China's No.1 market share in single-cell omics.Committee of the Board of Directors is responsible for developing scientific evaluation standards. It comprehensively Driven by the big science paradigm major life science initiatives have achieved key breakthroughs across the
assesses the performance management skills and team-building abilities of department and subsidiary company leaders. field.Technological innovation drove advancements with DNBSEQ-E25 achieving NMPA certification and the launch of the
Additionally it ties compensation to performance to incentivize these leaders to create greater value for the Company. The Flash Rapid Sequencing Solution. These innovations combined with the CKB Project's integrated workflow supported
Company has established an effective performance communication system that facilitates interaction between employees chronic disease research and validated MGI's sequencing solution.and management leading to joint improvements in performance.MGI Superstar Pioneer Award (individual award)
It is conducted through departmental meetings work summaries quarterly reviews and
other forms. The department meeting serves as a platform for team members to share We recognize individuals who uphold "MGI Three Good" philosophy through their
Regular their progress address issues and outline future plans. Work summaries help employees actions who have created fresh perspectives and directions for achieving ambitious
Communication systematically organize their accomplishments and areas for improvement. The quarter- goals made outstanding contributions to organizational development in research
ly review focuses on evaluating performance over time clarifying the direction and goals and development production marketing and support brought significant value
for employees to improve in the future. returns and served as exemplary role models.In 2024 the company bestowed the MGI Superstar Pioneer Award upon four
It is mainly conducted through conversations discussions and other means. When employees recognizing their outstanding contributions to the company's develop-
Irregular employees encounter unexpected issues face critical decisions or need to delve deeper ment through exceptional technological innovation efficient market expansion
Communication into specific matters during work they can reach out to their superiors or relevant high-quality customer service and proactive exploration of cutting-edge technolo-
personnel at any time. This allows them to address problems promptly and adjust their gies. These four "Superstar Pioneers" have embodied the company's development
work strategies accordingly. philosophy through their practical actions infusing new vitality into the company's
sustainable growth.The Company respects the rights and interests of its employees. Employees who disagree with their performance evaluation To improve the Company's long-term incentive and restraint mechanism and to attract and retain top talent the Company
results can file a complaint by completing the Performance Complaint Form and submitting it to their skip-level managers introduced a restricted stock incentive plan and an employee stock ownership plan in 2024. This move closely aligns the
within five working days. The skip-level managers shall promptly investigate and provide feedback on the results. If the interests of shareholders the Company and employees. The Company's talent incentive mechanism addresses both spiritual
employees remain unsatisfied they have the option to file a complaint with the Human Resources Center within five working and material aspects effectively inspiring employees' sense of mission honor and intrinsic motivation. While employees
days. The Human Resources Center shall conduct a fair and impartial investigation and provide a clear response. This mecha- appreciate the Company's recognition of their contributions they also feel a strong connection to the Company's growth and
nism protects the rights and interests of employees fosters fairness and efficiency in corporate management and promotes actively dedicate themselves to their work continuously energizing the Company's innovation and development.mutual growth between the Company and its employees.
99 100Value Growth
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Partner Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Environment
Employee Benefits
Inclusive Benefits
MGI Tech strictly adheres to national laws and regulations and is dedicated to building a comprehensive and compassionate The Company offers employees amenities like canteens dormitories and gyms to help
employee welfare system. In terms of rest and vacation rights the Company offers a comprehensive range of statutory them unwind and rest after work. And it shows its appreciation to employees and their
holidays paid annual leave and sick leave ensuring that employees have ample opportunities to rest and recharge amidst families through various gestures including birthday gifts wedding gifts hospitalization
their busy schedules. In terms of social security payments the Company demonstrates a strong commitment to responsibility nutrition expenses funeral expenses for immediate family members member death
and makes timely and full payments for all employees. Additionally it purchases commercial insurance for employees in Comprehensive condolence money and special hardship allowances among other benefits.specialized positions further strengthening the line of defense for their living security. Furthermore MGI Tech is committed to Benefit Offering
providing holistic support for its employees' physical and mental well-being as well as their overall quality of life. This support
encompasses multiple aspects including health management welfare benefits cultural and sports activities and special
assistance for those facing difficulties. Since 2016 hiking has become the signature activity of MGI every year and the Compa-
ny's birthday celebration has evolved into the Double Ninth Health Festival. Additionally
MGI hosts two major sports events annually provides fitness classes and educational
Employee Assistance Program lectures on science and organizes activities such as hiking mountaineering cycling ball
games and other sports. In 2024 the Company regularly hosted the Active Health series
Organizing Diversi- of events including activities like the "Step Count Challenge" "Shenzhen's Ten Peaks Chal-
MGI actively promotes early detection of diseases such as birth defects cardiovascular fied Cultural and lenge" and the "Flash Mob Challenge". Challenge winners earned cultural bonus points
and cerebrovascular diseases and malignant tumors within the Company. The Sports Activities books and peripheral gifts etc. Additionally individuals who conquered all ten peaks
Company offers annual physical fitness assessment and personal medical examination were honored as "Ten Peaks Warriors".services for employees across different regions. Based on the test results it provides
tailored advice to help employees manage and overcome the "three highs" (high blood
Health pressure high cholesterol and high blood sugar). Leveraging its own platform and
Management employees' physical examination results the Company arranges tailored activities like The "MGI Mutual Aid" program offers support to employees facing hardships promotes
Support targeted exercise and nutrition counseling pairing employees with fitness coaches and involvement in fundraising efforts and provides essential aid to colleagues reflecting a
nutritionists for personalized guidance to comprehensively protect employees' health. Special hardship spirit of compassion and unity.support
Health Management Support Diversified Cultural and Sports Activities
101 102Value Growth
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Chairman Transform Innovation for Future Healthcare Governance Environment
Benefits for Women
MGI Tech is committed to creating a gender-neutral work setting promoting flexible schedules helping women balance The Company's respect and inclusiveness for women are integrated into every detail. Every year on the International Wom-
work and life and comprehensively advancing their career empowerment and development. We have specially launched en's Day the Company not only generously gives female employees a special day off but also meticulously organizes a
the "Female Employee Care and Support Program" designed to provide full support for women's career advancement range of vibrant celebration activities. We present beautiful flowers to our female colleagues and extend warm wishes; set
opportunities thoughtful vacation and subsidy policies and a strong focus on their physical and mental health. As part of up DIY workshops where women can unwind and express themselves creatively; and actively highlight the achievements
this program we regularly arrange health check-ups host educational seminars on health and continuously improve the of outstanding female employees shining a spotlight on their accomplishments and exemplary power.workplace environment. Our commitment to care women is reflected in every detail. Moreover we maintain a zero-toler-
ance policy against workplace sexual harassment ensuring a safe and respectful environment where female employees
can thrive and excel with confidence.MGI Female Employee Care and Support Program
Fair career development
opportunities
Professional training and
Career development program
development
Gender-neutral policy Paid maternity leave and
breastfeeding leave
Nursing room support
Holidays
and Subsidies for transportation
subsidies communication and dining
Regularly organize health etc
check-ups for all employees
Cervical cancer and breast
Well-being cancer screenings
Health education activities
Comfortable and safe
workplace
Well-equipped nursing
Work
environment room
Free feminine hygiene
Strict prohibition of sexual products provided in the
harassment restroom
Ensuring respect for female
Anti-sexual employees
harassment
Establish an audit and risk
control center to protect
women's rights and interests
103 104Value Growth
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Chairman Transform Innovation for Future Healthcare Governance Environment
Employee Career Development and Training
MGI Tech is wholeheartedly dedicated to fostering career development and growth opportunities for its employees. In Eagle Program
terms of career development mechanism the Company has provided employees with dual career advancement chan- A program for identifying and nurturing mana-
nels (management and professional tracks). It conducts regular talent assessments designs tailored development gerial talent from promising employees through Wing Program
programs for employees and provides them with opportunities for training promotions and job rotations. Additionally it a project-based long-term training approach A short-term initiative to support
offers personalized training for key personnel to strengthen its talent foundation. In addition the Company aims to estab- that integrates industry academia and research. newly-promoted staff at all levels with
lish a diversified training system and offers a broad curriculum that includes general skills professional knowledge and rapid role adaptation and understanding
leadership management via online and offline lectures by adhering to the "One Core Two Drives and Four Forces" philoso- of their new responsibilities.phy. At MGI Tech the established employee career development and training system not only provides strong support for
personal growth but also creates a good foundation for overall team development.Employee Career Advancement Mechanism
Full Participation Culture
MGI Tech upholds the principles of fairness impartiality and openness and has established clear criteria for employee Focusing on cultural integration and
career advancement. The Company quantifies competencies and performance indicators to ensure that the selection understanding and guided by MGI's
process is standardized and transparent. The Company clearly outlines career advancement paths providing employees "Sailing" Programs ambitious goals we convey core values
with a detailed understanding of the requirements and development directions at each stage. The promotion process They include the "Underwater Navigating" through classroom training cultural
strictly adheres to established procedures from submitting the application to making the final decision ensuring that Program the "Setting Sail" Program the lectures on-site observation and other
promotions are based on true abilities and meaningful contributions. The Company has implemented a "dual-channel "Piloting" Program and the "Guiding" Program: methods to strengthen strategic focus and build team consensus.career development" system that focuses on nurturing both management and professional expertise. This approach The "Underwater Navigating" Program is implemented for new employees. The "Setting
encourages the rational flow of professionals and enables talented people to unleash their full potential. Employees can Sail" Program is implemented for cultivating
flexibly choose their development direction based on their career plans. recent graduates helping new employees
Employee Career Advancement Path achieve role transition and cultural integration.R&D Innovation Camp
The "Piloting" Program is implemented for key The R&D Innovation Camp is designed to
personnel of various departments to strength- help employees across different R&D
Management Professional Track en their team management capabilities. The departments gain a deeper understanding
Track "Navigating" Program is implemented for core of MGI's strategies and culture. It also aims
employees of various departments to to enhance their systematic learning of the
strengthen their strategic understanding and latest trends and technologies in life
execution capabilities and enhance their sciences while fostering their comprehen-
Group business and financial integration thinking. sive grasp and practical application of
Management interdisciplinary knowledge.MGI Tech launched the "Navigating" Program in
June 2024 with a total of 54 trainees from In 2024 MGI Tech conducted two sessions of
Corporate various directions including research and its R&D Innovation Camp training program
Management development manufacturing quality market- which significantly enhanced employees'
ing and functional. Under the guidance of 13 innovative approaches to problem analysis
EMT members they successfully completed and resolution. The comprehensive training
Departmental the seminar and learning of the courses of this combined theoretical instruction hands-on
Management Program over a period of six months. experience production line observations
and specialized seminars benefiting a total
of 79 employees.Employees
2024 Data
Average duration of Total number of Total number of
Employee Training employee training training hours received training hours received
by male employees by female employees
MGI adheres to the philosophy of "placing business success at the core and putting people first" elevates talent cultivation 55.03 HoursPercentage of
and training to a strategic level and builds a systematic talent development system. According to its internal rules and 81554 Hours 61743 Hoursadministrative
regulations the Company conducts regular talent assessments and tailors development plans for employees. In particu- personnel
lar tailored training plans are established for key personnel high-potential employees and international talents to unlock
their potential thereby laying a solid talent foundation. 143297 Hours Number of training Number of male Number of female
participants employees receiving employees receiving
The Company has developed a distinctive "One Core Two Drives Four Forces" training system. This system offers a wide 4426 Person-times training training
range of courses covering culture skills and management through diversified models such as online and offline combina- 2519 Person-times 1907 Person-times
tion and practical experience. It comprehensively enhances employees' practical abilities boosts the organization's core
competitiveness and helps employees realize their personal value.
105106
Technology
Marketing
Production
SupportValue Growth
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Partner Guardian of Our Appendices
Chairman Transform Innovation for Future Healthcare Governance Environment
Occupational Health and Safety
MGI Tech attaches great importance to employees' occupational health and safety complies strictly with laws and regu-
lations such as the Work Safety Law and the Law on the Prevention and Control of Occupational Diseases and has formu-
lated internal documents such as the Management Procedure for the EHS Committee and the EHS Target Management
Procedure to provide institutional support for employee rights and interests. The Company has set up the MGI-EHS com-
mittee which is led by the CEO supported by the COO and the Vice President of Quality Systems and overseen by the
Safety Director. This structure ensures comprehensive coverage across all business processes ensuring efficient identifi-
cation of hidden dangers providing training mitigating risks and fostering a safe and healthy work environment.Director
CEO
Deputy Director Deputy Director
COO Vice President of the Quality Safety DirectorSystem
Headquarters Safety and
Marketing R&D System Production Supporting Environmental Protection System System System Department
Training Activity Photos Subsidiary teams
In addition to regular talent development programs MGI Tech actively expands its resources to support the well-rounded
personal development of its personnel. This includes offering on-the-job continuing education platforms hosting In management practice the Company mandates that employees identify potential job hazards eliminate any illegal
academic exchange lectures conducting professional title evaluations and facilitating applications for government talent operations and effectively manage accident levels; and strictly enforces environmental emission standards to prevent
benefits. MGI Tech has laid a solid foundation for employees' growth through comprehensive layout promoting their pollution. Additionally the Company ensures that the physical examination rate of employees in occupational hazard
steady progress in career development and achieving a deep integration of personal value and enterprise development. positions reaches 100%. Furthermore the Company standardizes the use of protective equipment and provides reason-
able accommodation for employees with occupational restrictions. The renovation and expansion of new materials new
positions and new equipment strictly adhere to the "three simultaneous" principle achieving a compliance rate of 100%.The Company also enhances employees' safety literacy and awareness through whole-process management including
EHS training inspections hazard rectification and emergency drills. This approach aims to minimize accident risk and
provide robust support for sustainable development.
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Chairman Transform Innovation for Future Healthcare Governance Environment
Performance Highlights
Our subsidiaries in Shenzhen Wuhan and Qingdao have achieved
certifications for both the ISO 45001 Occupational Health and Safety
Management System and the ISO 14001 Environmental Manage-
ment System.In February 2024 our Wuhan subsidiary won the title of "Excellent
Enterprise in Work Safety of Donghu High-tech Zone" for 2023
There was zero recorded cases of occupational diseases or
accidents of Level III and above involving accountability. On the basis of robust accident risk management we also make active efforts to improve occupational health conditions
with all stakeholders. Drawing on the EU's concerns about occupational health and safety we give comprehensive consid-
eration to occupational health and safety needs of workers in labor employment external partners technical briefing on
safety labor protection safe operations tool improvement emergency material allocation etc. Moreover we also
constantly improve the safety literacy and awareness of employees carry out activities such as work safety month fire
safety month and online safety training regularly and give publicity to safety knowledge through the official WeChat
official account and video platform to create a good safety atmosphere. According to the Emergency Preparedness and
Response Control Procedure the Company organizes regular fire drills chemical emergency drills and biological leakage
drills every year to enhance employees' emergency awareness and protection skills and ensure the safety of the Compa-
ny's properties and employees' lives and the compliance of production and operation activities.
2024 Data
Number of newly added Number of work-related Investment in work safety
employees with occupational deaths of employees 2.837 million yuan
diseases 0 People
0 People
Photos of Occupational Health and Safety Inspections and Training
The Company has formulated the Hazard Identification Risk Assessment and Control Procedure and keeps updating and
improving the list of hazards to ensure the timely identification and assessment of potential risks and enhance workplace
safety and employees' occupational health through systematic risk management.To realize the intelligent and visualized management of occupational health and safety MGI Tech has established an
occupational health and safety management system platform. This platform integrates multiple modules such as a basic
safety information bank potential accident screening and correction an accident risk database ticket management and
a regulatory repository. Such systematic integration improves the efficiency of occupational health and safety manage-
ment and enables managers to access and process relevant information quickly thereby identifying assessing and
controlling accident risks more effectively.Through this platform the Company's occupational health and safety management measures are standardized and
automated priority areas of management are highlighted and the efficiency of resource inputs is enhanced. This
data-driven approach not only helps to enhance employees' safety awareness but also supports continual improvement
and compliance management.
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Chairman Transform Innovation for Future Healthcare Governance Environment
Fulfilling Social Responsibility Shouldering Responsibility
MGI Tech always cares about social needs and participates actively in public welfare programs by donating materials MGI Tech always adheres to the mission of promoting the development of life sciences fostering scientific research and driving
providing public welfare services and supporting scientific research. In various fields such as healthcare humanitarian innovation through a variety of partnerships. The Company places a high value on nurturing young scientists helping them
assistance and public welfare education the Company carries out diversified practical activities to create more value for grow and achieve breakthroughs by launching incentive programs and providing scientific research support thereby injecting fresh talent into the development of various disciplines. MGI Tech collaborates extensively with both domestic and international
society through practical actions. scientific research institutions. Leveraging its advantages in high-end tool R&D and manufacturing in life sciences and technol-
ogy it provides advanced equipment and technical support enhancing the efficient output and commercialization of scientific
Social Welfare research findings.The Company is committed to promoting the intensive development of higher education through educational donations
Always dedicated to public welfare as its original intention the Company carries out diversified public welfare actions and laying particular stress on frontier discipline building and high-level talent training. During the reporting period the Company
promotes social progress and harmonious development through practical actions based on needs of different social provided funding and advanced equipment support to universities such as University of Chinese Academy of Sciences and
groups. Guangxi Medical University mainly in order to improve their scientific research strength and teaching level in key fields such as
life sciences and artificial intelligence. These inputs are used directly to support discipline building introduce and reward excel-
The Company cares about international public welfare. It donated resources to relevant organizations in Vietnam to lent teachers and researchers and provide students with better research and training conditions thereby helping these univer-
support social welfare and poverty alleviation projects and supported scientific research and educational promotion and sities train top innovation talents needed by society faster.injected more innovation impetus into the global community by cooperating with world-renowned public welfare and While supporting top-level research and talents the Company also attaches great importance to the improvement of basic
charity organizations such as Cold Spring Harbor Laboratory. educational conditions and the creation of an innovation atmosphere at campuses. For example the Company has supported
the construction of basic teaching facilities (e.g. basic industrial training centers) at universities such as Tsinghua University
In terms of women's healthcare the Company launched the "Corporate Pink Bus" event which was organized jointly by laying a solid practice foundation for students. In addition by establishing special innovation funds together with University of
Imabot Kunshan Medical Co. Ltd. and Kunshan First People's Hospital to provide door-to-door breast screening service for Chinese Academy of Sciences and other institutions the Company encourages universities to carry out diversified educational
2101 women of the right age from 39 entities protecting women's health with scientific and technological strength. The and teaching activities inspire students' innovative thinking and exploration spirit promote the innovation and development of
Company also organized the "Life Relay" MGI special public welfare blood donation activity together with the Shenzhen educational models and contribute to the long-term sustainable development of education.Blood Center and employees participated actively to convey social care. These activities not only demonstrate the corpo-
rate spirit of public welfare but also enhance employees' senses of belonging and social responsibility.Case Jointly Launched the China Youth Scientists Incentive Program (Phase III)
In 2024 MGI Tech teamed up with STOmics to jointly launch the "Keeping Track of Small Changes - STOmics China
Young Scientist Incentive Program (Phase III)" aiming to provide strong support for young scientists' scientific research
and exploration. This Incentive Program covers a broad spectrum of scientific research fields with a focus on diverse
disease research areas involving animal models pathogenic microorganisms and other directions. It encourages
young domestic researchers to use the spatiotemporal transcriptome FFPE product scheme to conduct cutting-edge
scientific research such as microbial detection and host-microbe interaction and supports them in achieving ground-
breaking advancements in the life sciences field.
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Chairman Transform Innovation for Future Healthcare Governance Partner
Gua rdian of Our Environment
MGI Tech incorporates green development into its corporate strategy and everyday operations. By
assessing climate risks and opportunities developing low-carbon and eco-friendly products prioritizing
biodiversity conservation optimizing resource usage minimizing waste and implementing green
operations MGI actively shoulders its environmental responsibilities. These efforts propel sustainable
development and foster a harmonious relationship between humanity and nature.
2035 Plan
Carry out carbon peak path planning by 2025 and achieve carbon neutrality
by 2060.Over 5500 complete DNA sequence studies on the human genome and other
animal plant and microbial species have been supported in total.Overall production energy consumption is reduced by 10% year on year.Certified to the ISO 14001 Environmental Management System.Pollution sources such as wastewater waste gases noise and waste
discharge are below the local emission standards.This chapter responds to SDGs
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Environmental Management
MGI Tech adheres to the Environmental Protection Law of the People's Republic of China and relevant environmental
regulations in its operating regions and has put in place high standard environmental management systems such as the
EHS Management Manual the Environmental Factor Identification Assessment and Control Management Procedure the
EHS Monitoring and Measurement Management Procedure the Emergency Preparedness and Response Control
Procedure the EHS Accident Investigation and Handling Management Procedure and the Environmental Sustainability
Management Process. We are committed to reducing energy consumption and environmental pollution through scientific
management practices while strictly adhering to the "three simultaneous" principle of environmental protection to ensure
the pollution control capabilities of projects the level of environmental risk management and the coordinated 2024 Data
development of project construction and operations.We place a high priority on creating and sustaining EHS governance frameworks and environmental management Investment in environmental
systems undergoing evaluation system certifications to ensure the effectiveness of our environmental stewardship and protection2.249 million yuan
construct robust environmental protection measures. Professional EHS management teams have been established at
headquarters and all facilities tasked with implementing EHS guidance policies achieving goals adhering to
management regulations and ensuring consistency in environmental management actions. These teams also rigorously
monitor environmental risk points in production and operations identify and assess potential environmental impacts and
enhance employee awareness and capabilities in environmental risk prevention through environmental protection EHS Training
training.Government Compliance Prevention and Control of
Collaboration Environmental Risks
Subsidiaries in Shenzhen Kunshan Wuhan Based on the Risk Assessment Report on
Qingdao and Latvia actively collaborate with Sudden Environmental Incidents the Compa- Responding to Climate Change
government inspections working closely with ny's environmental risk level is classified as
various departments such as sub-district work "Ordinary" [Ordinary – Atmospheric (Q0) +
safety administrations district emergency Ordinary – Water (Q0)] with overall risks being The World Health Organization's Special Report on Climate Change and Health emphasizes that climate change poses
management bureaus environmental protection controllable. In response to the risk of leakage in the greatest threat to human health. Adhering to the vision of "Leading Life Science Innovation" MGI Tech attaches great
bureaus science and technology innovation the storage and use of hazardous waste and importance to climate change issues and incorporates them into the core of its sustainable development strategy.bureaus and fire emergency rescue teams. The harmful substances the Company regularly
inspection encompasses environmental protec- conducts environmental hidden danger Building on its existing Environment Health and Safety (EHS) management system the Company is actively refining its
tion facility management fire safety regular investigation and organizes interdepartmental climate governance framework. It is also advancing systematic assessment of environmental risks and opportunities to
safety inspections and special inspections both coordination emergency drills on hazardous
prior to and following holidays. In 2024 each chemicals. This ensures the safety of employees strengthen climate resilience and drive long-term sustainable development. During this process the Company is
base averaged four inspections per month and and protects the ecological security of the undertaking preliminary research and planning for optimizing its governance system managing climate risks
rigorously enforced compliance requirements Yantian River Basin implementing low-carbon operations and accounting for greenhouse gas emissions. It will gradually establish a scientific
and systematic climate management framework.EHS Culture Management System
Development Certification
1. We release bilingual EHS tips monthly. For All three major production bases in Shenzhen
example in April 2024 we highlighted the Wuhan and Qingdao have achieved ISO
Earth Day theme by promoting the environ- 14001:2015 certification for their environmental
mental protection knowledge of "Earth Day management systems. We foster standardized
2024: Planet vs. Plastics". environmental management by implementing
a standardized management framework
2. Each month we conduct a variety of EHS continually enhancing environmental gover-
training sessions covering topics like safety nance efficiency
and environmental protection. We also
maintain thorough training records and video
documentation
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Chairman Transform Innovation for Future Healthcare Governance Partner
Climate-related Governance
The Company is improving its climate-related governance structure to ensure systematic and effective management of
climate risks and opportunities. Currently the Company is conducting preliminary research and setting up management Categories Potential Impact of Risks Response measures
systems to address climate-related issues. It is also assessing sophisticated governance models to support strategic
implementation in the future.Establish a policy tracking mechanism
Policy Implementation of carbon emission optimize the compliance management
and control policies
The Company is exploring the establishment of a climate change management system proactively respond to carbon regu-
Management mechanism to further clarify governance functions division of responsibilities lation Increased requirements for climate
emission control and climate disclosure
Structure and cross-departmental collaboration models. This aims to effectively align response and disclosure requirements and ensure that opera-
climate issues with the Company's overall business operation tions comply with policy orientation
Increase investment in low-carbon product
Market preferences are gradually research and development promote
Supervision and Based on industry practice the Company is exploring ways to systematically incorporate climate risks into its risk management framework while assessing shifting towards low-carbon products technological iteration and upgrading decision-making Market develop medical equipment that meets
mechanism the feasibility of establishing a senior management mechanism (such as a
potentially resulting in decreased
market low-carbon preferences and
climate-related working group or committee) sales of medical equipment. enhance product market competitiveness
Make the layout of energy technology
Data management The Company plans to gradually establish a climate-related data monitoring innovation introduce energy-saving
and information and management mechanism aiming to increase the transparency and The backwardness of energy Tech- equipment and digital management tools
acquisition comparability of climate data. This will provide valuable support for future technology may lead to an increase nology reduce energy consumption in the produc-management decision-making in production costs. tion process and cope with cost pressure
caused by technological backwardness
Incorporate environmental protection
concepts into the full life cycle of products
Climate-related Risk and Opportunity Management Repu- Stakeholders' attention to non-envi-tation ronmentally friendly products has strengthen communication with stake-
decreased holders proactively disclose green
The Company is systematically reviewing the potential risks and opportunities arising from climate change and assessing practices and enhance the Company's eco-friendly brand image
their impact on operations supply chains and markets in light of its business characteristics with the goal of developing
adaptive management strategies.Climate-related Opportunities
Climate-related Risks
Opportunity Category Potential Impact of Opportunities Measures to Address Opportunities
Categories Potential Impact of Risks Response measures
Enhance water resource utilization
Extreme weather events like floods Build a "multi-base collaboration + efficiency by employing recycled water
and typhoons pose threats to the flexible inventory" supply chain system systems
Acute stability of the supply chain making it
strengthen extreme weather warning
challenging to ensure the stable mechanisms develop emergency Resource
Improve resource utilization efficiency Utilize renewable materials
supply of products and services. plans and ensure supply chain stability efficiency
and reduce production and operation
Implement efficient transportation
and product delivery capabilities costs strategies
Streamline production and distribution
processes
Improve the employee health manage-
Climate change harms employee ment system carry out health
health triggers sub-health issues check-ups and sub-health intervention Establish plans for energy conserva-
Chronic lowers overall labor force levels and activities and provide a healthy office
tion and emission reduction
has a negative impact on technical environment for the purpose of Energy Optimize energy structure and
research and development and Engage in carbon trading marketsreducing the negative impact of sources reduce energy consumption costs
production efficiency climate on employee health and Expand the proportion of clean energy
production efficiency usage
117118
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Opportunity Category Potential Impact of Opportunities Measures to Address Opportunities
Production We promote the effective reduction of greenhouse gas emissions in both produc-
Developing low-carbon products that Exploit opportunities in the low-carbon tion and transportation by utilizing new processes materials and technologies
Products and align with the carbon peaking and product market and accelerate the
services carbon neutrality goals and reap the commercialization and implementa-
dividends of low-carbon development tion of low-carbon technologies
Green We procure more packaging materials that incorporate recycled materials such as
Embrace government green incentive white cardboard (for outer boxes) fluted paper (for outer boxes and cases) EPE
policies packaging (polyethylene foam for inner padding) and wooden crates (for outer cases)
Meet the green demands of the
Market market explore new market space Deepen school-enterprise collaborative
and create new opportunities for innovation
business growth and profitability Promote the green upgrading of the
supply chain
We have comprehensively evaluated the impact of transportation methods on
Transportation operating costs global resource utilization and environmental factors and found
that supply chain transportation primarily relies on sea freight rather than air freight
Promote diversified layout of
Enhance the resilience of the Company energy/resources and enhance the
Adaptability to climate risks and ensure operational ability to optimize bundle of resources
stability and resources fit
Greenhouse Gas Emission Management and Goal-setting
Low-carbon Operation and Climate Adaptability To enhance our measurement and management of environmental performance we are incorporating quantitative
greenhouse gas emission data as a critical management indicator. The Company is currently working to collect and
Based on climate risk and opportunity assessment the Company is progressively refining its management strategies for analyze greenhouse gas emission data aiming to establish a robust carbon management system that will underpin future
core business processes and exploring low-carbon operational pathways tailored to its business model. goal-setting efforts. By constantly monitoring analyzing and enhancing its greenhouse gas emission data MGI Tech is
Following an initial qualitative assessment of the risks and opportunities presented by climate change MGI Tech has dedicated to minimizing the environmental impact of its operations.refined and enhanced its response strategies across critical areas such as R&D design raw material procurement
production green packaging and transportation. This effort aims to mitigate risks capitalize on opportunities and bolster
both enterprise resilience and sustainable development capabilities. Carbon emission data management Goal-setting plan
The Company is currently organizing data The Company plans to assess the feasibility of
for Scope 1 (direct emissions) and Scope 2 establishing short-term (2030) medium-term
(indirect emissions related to electricity (2040) and long-term (2050) carbon
We prohibit the use of harmful substances and materials reduce resource waste purchase) while studying the applicability management goals once it has finalized the
R&D design and ensure that our products comply with customer environmental requirements of Scope 3 (supply chain and product full baseline data calculations. This will ensure
and relevant legal regulations life cycle emissions) accounting. that the goal-setting aligns with both business
development plans and industry trends
2024 Data Greenhouse Gas Emissions
Raw material While ensuring product quality and meeting customer needs we increase the use of
eco-friendly materials to make our packaging materials greener more minimalist
procurement Scope 1: Greenhouse Scope 2: Greenhouse Scope 1: Greenhouse gas Scope 2: Greenhouse gas and renewable gas emissions gas emissions emission intensity emission intensity
118.51 tCO2e 25446.84 tCO2e 0.0004 tCO2e/10000 yuan 0.0845 tCO2e/10000 yuan
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Biodiversity Conservation
MGI Tech is actively involved in biodiversity conservation leveraging the power of technology to safeguard ecosystems.The Company is actively revolutionizing methods for discovering and monitoring biodiversity by establishing "eDNA
metabarcoding" technology which links high-throughput sequencing with eDNA sequences. MGI Tech has also introduced
an environmental DNA metabarcoding product based on the ATOPlex platform and DNBSEQ sequencing platform. This MGI Tech's DNBSEQ-G99 Sequencer Aids in Monitoring Fish Species in Wuhan's Case
product empowers researchers to detect and quantify biodiversity and its changes at high throughput offering a compre- Donghu Lake
hensive one-stop environmental DNA monitoring platform from sample collection to analysis. The product is capable of
identifying microorganisms plants algae and animals in environmental samples such as water soil and sediment. It The DNBSEQ-G99 sequencer from MGI Tech has played a vital role in collaborative research between the
features several advantages including no harm to living organisms no developmental stage restrictions high sensitivity Institute of Hydrobiology at the Chinese Academy of Sciences and the Hubei Provincial Ecological Environment
broad species coverage and robust analytical functions. It serves as a powerful tool for biodiversity monitoring in ecosys- Monitoring Center. The research team collected water samples from six locations in Wuhan's Donghu Lake and analyzed these samples by using environmental DNA (eDNA) technology for the purpose of monitoring the
tems and provides a more effective approach for assessing the risks of environmental pollution on ecosystems. diversity of local fish species.In this study the team used the MGIEasy kit to extract eDNA from water samples rapidly completed sequencing
with the DNBSEQ-G99 sequencer and gathered extensive biological data in just 12 hours. The results show that
a total of 51 fish species were detected involving 16 families and 36 genera including economic fish such as
Case MGI Tech and Chengdu Giant Panda Base Jointly Build a Smart Protection Laboratory carp and silver carp as well as invasive species such as mosquitofish. This research finding provides important data support for understanding the ecological health status of Donghu Lake.The efficient sequencing capabilities of the DNBSEQ-G99 sequencer not only enhance the speed and accuracy
MGI Tech has entered into a strategic collaboration with the Chengdu of fish diversity monitoring but also help pave the way for the standardization of biodiversity conservation
Research Base of Giant Panda Breeding. Through the joint laboratory of efforts. MGI Tech's technologies will continue to aid ecological monitoring and contribute to achieving the strate-
the "Endangered Wildlife Smart Protection Research Center" they aim gic goal of biodiversity conservation.to enhance the conservation of endangered species including giant
pandas by leveraging sequencing technology and the "Smart Lab"
platform. The "Smart Lab" is a life digital platform system launched by
MGI Tech which is growable perceivable self-deciding and self
executing. It can provide digital management and environmental
element monitoring for the laboratory from samples to data signifi-
cantly improving the digitalization level of the Giant Panda Base. In the
future the two parties will work together to advance new methods and
technologies for biodiversity conservation including efforts like
conserving the genetic diversity of giant pandas and conducting Chengdu Research Base of Giant
precise field studies. Their efforts will elevate the conservation of rare Panda Breeding and the representa-
wildlife such as giant pandas to new heights. tives from MGI Tech sign the contract
MGI Tech and E-genomics Jointly Build an Environmental DNA Technology
Case Innovation Ecosystem
Under the auspices of the Yangtze River Ecological Civilization Innovation
Center in Nanjing MGI Tech and Nanjing E-genomics Technology Co. Ltd.(hereinafter referred to as "E-genomics") have formed a strategic
partnership. Moving forward they will focus on innovating and setting
standards for environmental DNA biological monitoring technology
developing specialized solutions for biodiversity conservation and
ecological governance across various applications promoting the
innovative verification and application forward-lead of domestic
sequencers and other core life science tools in ecological monitoring and
achieving mutual benefit and win-win results.The DNBSEQ-G99ARS sequencer used in E-genomics this time is among
the fastest small- and medium-throughput sequencers globally. The
PE150 only takes 12 hours while the PE300 mode sequencing only takes 30
hours. Additionally computing modules can be built in to achieve
sequencing bioinformatics integration and meet the research needs of
the eDNA field. In the future E-genomics and MGI Tech will continue
collaborating to promote environmental DNA biodiversity solutions across Group Photo at the Signing Site
China supporting biodiversity conservation efforts.
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Resource Utilization
Within the framework of its sustainable development strategy MGI has developed the Energy and Resource Management
Procedure. This procedure prioritizes efficient resource utilization and thoroughly incorporates the principles of green
development into every aspect of production and operations. Driven by two wheels including technological innovation and Case Application of the Solar Hot Water System
management upgrades we continually enhance the efficiency of using resources such as water and energy explore
circular economy models and while fostering business growth effectively reduce resource consumption intensity per unit
of output value. This sets a benchmark for sustainable resource use in the life sciences and technology sector and helps In addition to that 9723 square meters of photovoltaic panels were installed on the rooftop of the MGI
build an ecosystem where resource conservation and industrial development thrive together. Space-Time Center at the Company's Shenzhen headquarters and connected to the power grid the Company's Wuhan base pioneered the use of solar hot water systems in 2024 further boosting the proportion of clean
energy used while meeting hot water use demands.Energy Management The system absorbs solar radiation heat through the heat collection tube and uses the solar-powered circula-tion pump to transport the heated hot water to the hot water tank. Then the hot water is circulated between the
The Company highly values energy management strictly complies with relevant laws and regulations on energy man- water tanks and pumped to the constant temperature water tank to maintain the water temperature. After
agement and implements effective measures for energy conservation and consumption reduction while raising energy professional evaluation compared to fully using electric heaters this system can save 400000 kWh of electrici-ty per year. Calculated at an industrial electricity price of 0.7377 yuan/kWh the annual electricity cost savings
conservation and environmental protection awareness among all staff. By the end of 2024 electricity particularly for air reach 295000 yuan.conditioning and other public infrastructure had been the predominant energy source consumed. To address this we
systematically pursued lean manufacturing to enhance production efficiency and focused on two areas: reducing energy
consumption and optimizing energy structure.In terms of reducing energy consumption the Company has established an energy saving and consumption reduction 2024 Data Energy Consumption Management
plan introduced high energy efficiency indicators and energy management platforms monitored key indicators such as
total electricity consumption energy intensity reduction in production energy consumption and the proportion of clean Total consumption of electricity Total consumption of Total consumption Natural gas
energy/green electricity usage and actively carried out systematic monitoring control and optimization starting from 48228146.59 kW·h diesel563 Liters of gasoline 50455.00
equipment upgrades process improvements and other aspects effectively reducing energy consumption. 4200.00 Liters Cubic meters
Comprehensive energy consumption Comprehensive energy consumption per 10000
5987.99 Tons of standard coal yuan output value
0.02 Tons of standard coal/10000 yuan
Case Construction of Efficient and Energy-saving Equipment Rooms
The Company's Wuhan base focuses on optimizing energy management and promoting the construction of Water Resource Management
efficient and energy-saving equipment rooms. The equipment rooms improve energy efficiency through
multi-dimensional technological innovation: On the one hand by simulating annual energy consumption MGI Tech adheres to the principle of "use as needed" rigorously controlling water usage in production and life processes
calculating the required hours for each load rate and comparing multiple cooler matching schemes the to eliminate waste.optimal unit matching scheme is selected. On the other hand based on intuitive data reports the number of
devices that are turned on under different operating loads is generated and the underlying logic of the equip- In terms of water use in production through the implementation of stringent water management practices we retrofit
ment room control is established; the COP curves of fixed-frequency centrifugal units variable-frequency production equipment and processes for water conservation and regularly maintain the water supply system significantly
centrifugal units and magnetic levitation units at different cooling water temperatures are compared the oper- reducing water consumption. By promoting water-saving concepts through training and publicity campaigns we have
ating status of air conditioning units valves and water pumps is dynamically simulated to reduce system resis- successfully raised employees' water-saving consciousness. We have also implemented various water-saving initiatives
tance optimize pipeline systems and ensure that the equipment operates on the optimal operating curve. such as wastewater recycling and improving equipment recycling rates to enhance water resource efficiency. We
According to professional calculations the total cooling load of the project design is 4683RT (16470KW). Calcu- systematically monitor and analyze total water consumption and intensity and adjust our water strategies in a timely
lated based on a full-load production scenario with an annual hot season of 2 months a sub-hot season of 3 manner to maintain optimal water management.months and an industrial electricity price of 0.7377 yuan/kWh it is estimated that the annual electricity cost
savings will reach 5.13 million yuan. The Project provides guarantees from six major dimensions: safety and In terms of domestic water use we integrate the concept of water conservation into the daily routines of our employees
durability functional comfort aesthetic refinement easy maintenance durability and energy conservation and emphasizing its environmental and social significance. While ensuring product quality and meeting employees' everyday
environmental protection achieving dual improvements of energy-saving effect and comprehensive perfor-
mance and creating a benchmark example for efficient energy management in industrial scenarios. needs we continually strive to enhance water resource utilization efficiency. Specific measures include using water-saving
faucets water-saving toilets and posting water-saving signs.In terms of optimizing the energy structure the Company vigorously promotes the utilization of solar energy. We lay photo- 2024 Data Water Resource Management
voltaic panels on the roofs of buildings construct energy storage facilities increase the proportion of clean and green
energy use and promote the implementation of the carbon verification process and the achievement of our carbon peak- Total water consumption Water consumption intensity0.72 Cubic
ing and neutrality goals. 218313.54 Cubic meters meters/10000 yuan
123 124Guardian of Our
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Waste Management
Mismanagement of the "three wastes"—wastewater waste gases and solid waste—can severely affect the environment During the reporting period the Company had only one key pollutant discharging unit namely DGI TECH (QING DAO) CO.and human health. Therefore our company places a high priority on their management and has implemented a series of LIMITED which is a key pollutant discharging unit for the water environment. The wastewater discharge of Qingdao DGI is
specific measures. We have formulated management measures such as the Wastewater Discharge Management Proce- as follows:
dure the Waste Management Procedure the Exhaust Gas Discharge Management Procedure and the Hazardous Noise
Prevention Procedure. And we have established a rigorous waste management system that monitors the generation Names of key Dischar Numb Distribution Unit Discharge Pollutant Total Approv Over-
treatment and discharge of these wastes throughout the entire process. By investing substantial funds and adopting and ge er of of concentration discharg dischar ed total stand
cutting-edge waste treatment equipment and technologies we ensure that our waste management practices meet characteristic mode discha discharge e ge dischar ard pollutants rge outlets standard ge disch
national and local standards. outlets impleme arge
nted
Wastewater Treatment
MGI Tech assumes environmental responsibility for the wastewater Suspended matter mg/L 8 400
and waste liquids generated during the manufacturing process
The
which includes laboratory cleaning wastewater tail water from Total dissolved mg/L 0.00174 2000 design
pure water preparation backwash water and domestic sewage. solids daily
We strictly adhere to wastewater discharge regulations and Ammonia nitrogen mg/L 2.41 45 waste-
standard. And we issue monitoring reports that cover typical (NH3-N) Total water
indicators (such as wastewater flow rate COD TN ammonia waste- treat-
Enzyme ment
nitrogen etc.) regularly monitoring and upgrading our facilities to BOD5 mg/L 11.8 350 water engineer- dis- capacity
prevent any negative impacts on the environment or neighboring Pipe ing of the Con-charge
communities. In addition we regularly evaluate the test cycles of pH dis- 1 - 7.61 6.5-9.5 form-charge outdoor (during enzyme ing
our equipment and the performance of our treatment processes wastewa- engi-Temporary Sewage Treatment Facilities the
so as to ensure the effective treatment of all wastewater segments. COD ter station mg/L 20.4 500 reporting neering
period): waste-
In 2024 a temporary sewage treatment facility was installed at the Total phosphorus 15152m3 water
Company's Wuhan base to ensure that wastewater from MGI's (as P) mg/L 1.745 8 treat-
ment
intelligent manufacturing and R&D base would be effectively treat- Fecal coliform station is
ed before being released into the environment. count MPN/L 115 500 45m3
Total nitrogen mg/L 2.922 15
Wastewater Management and Treatment Flowchart (as N)
Laboratory cleaning wastewater
and pure water backwash water
are classified as industrial
wastewater generated during the Park wastewater treatment system
equipment maintenance process
Municipal water quality Waste Gases Treatment
purification plant
We consistently strive to minimize waste gas emissions during production ensuring compliance with environmental
standards and fulfilling our environmental responsibilities. We have implemented rigorous waste gas treatment proce-
dures utilizing advanced technologies and equipment to effectively remove harmful substances and ensure emissions
Domestic sewage and Septic tank pretreatment meet safety standards.concentrated water produced
from pure water preparation The Company categorizes waste gases into organic and acidic types and treats them accordingly. Organic waste gases
can be treated as typical are treated with ventilation cabinet filters and activated carbon adsorption in waste gas towers while acidic waste gases
domestic wastewater are subjected to alkaline scrubbing and activated carbon adsorption in waste gas towers. For example in the chip
production facility organic gas emissions from processes such as coating and cleaning are extracted through ventilation
cabinets and then treated by rooftop devices resulting in ultra-low emissions of pollutants through activated carbon
adsorption.
125 126Guardian of Our
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2024 Data Use of Packaging Materials
Case Construction of Green Coating Production Line at Changguang Factory Packaging Material Used: Lumber
147.34 Tons
As of 2024 the coating production line at Changguang Factory had been fully constructed and was operating
normally. The coating machines used in Changguang Factory are evaporative coating machines and sputter-
ing coating machines the principle of both of which are physical deposition. During the coating process only
oxygen and inert gas argon need to be supplemented and no harmful gases are emitted. The coating materials
are also all oxides which only undergo oxidation reactions. The entire coating process is non-toxic and harm-
less and will not have an impact on the environment.Industrial Solid Waste Treatment
MGI Tech takes the management storage and subsequent treatment of hazardous waste very seriously. In order to
prevent leakage incidents we have established corresponding rules and regulations for different categories of waste to
ensure standardized regulated and systematic waste management. The Company classifies industrial solid waste into Green Operations
hazardous waste and general industrial solid waste and strictly monitors data indicators such as total hazardous waste MGI Tech adheres to the concept of sustainable development dedicated to reducing environmental impact throughout its
generation total general waste generation hazardous waste generation density and laboratory waste generation. production and operational processes and takes concrete actions to safeguard ecological balance.For general industrial solid waste MGI Tech implements effective management by entrusting it to local waste manage-
ment companies for recycling and disposal with valuable parts being disposed of for a fee. Recognizing the specificity of Sustainable Practices for Green Operations
hazardous waste the Company has established hazardous waste temporary storage rooms in various production units
with dedicated personnel responsible for collecting hazardous waste generated during the production process. These
waste materials are regularly collected and disposed of by third-party environmental companies with the appropriate
qualifications according to strict standards ensuring the formation of a complete and effective disposal loop. This has Green Office
established a virtuous cycle of hazardous waste generation collection and disposal providing crucial support to prevent Implementing paperless office practices
transitioning daily applications and Green Buildinghazardous waste leakage. As of the end of 2024 no hazardous waste leakage incidents had occurred
approvals to online systems thereby Prioritizing office spaces located in
In 2024 the Company built new hazardous waste storage facilities at saving a significant amount of paper buildings that have won green
its Shenzhen Base Space-time Center and Wuhan Base respectively resources. For example in terms of energy-saving awards; and fully
logistics management the Company uses considering green and energy-saving enhancing its storage and management capabilities while ensuring information systems such as WMS and factors in construction projects. For
safe and standardized temporary storage of hazardous waste. TMS to achieve paperless ordering example all the buildings at the Wuhan
automated tracking and online meetings base including production plants
thus reducing paper usage. dormitories canteens and warehouses
Newly Built Hazardous Waste Ware- have been issued the Building Energy
house at the Space-time Center Efficiency Design Reports.Green Transportation
For domestic transportation priority should
2024 Data "Three Wastes" Management be given to environmentally friendly and Green Energy low-carbon methods such as public
Total amount of Total amount of Total amount of Photovoltaic power generation equipment
transportation and new energy vehicles.has been installed on the roof top of the When it comes to international
general solid waste recyclable waste hazardous waste headquarters building of the Shenzhen transportation priority should be given to
73.20 Tons 4.20 Tons 323.97 Tons base with plans to utilize photovoltaic direct flights whenever possible to
power for self-consumption in the future. minimize flight distances. A multimodal
Total amount of wastewater discharge Total amount of waste gas emissions green transportation system shall be developed.
179630072.00 Cubic meters 21071.62 Cubic meters
127 128Guardian of Our
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Creating a Clean Laboratory Environment
A clean laboratory environment is crucial for improving work efficiency minimizing cross-contamination risks and ensur-
ing the accuracy of experimental results. MGI Tech effectively maintains laboratory cleanliness and safety through the
establishment of well-defined protocols regular training and diligent supervision.Case Construction of Green Transportation System
MGI Tech is committed to its energy management goals and drives green upgrading in the transportation
sector. In China new energy vehicles are fully utilized for collecting and delivering goods in cold chain
less-than-truckload services resulting in zero exhaust emissions. For mainline transportation railway transpor-
tation is prioritized with high-speed and standard rail freight making up 70% of the domestic cold chain Establish cleaning protocols
less-than-truckload volume. For international transportation direct flights are prioritized to minimize Develop detailed laboratory cleaning protocols including daily weekly and
trans-shipments enhancing efficiency while reducing the reliance on dry ice. By constructing a green transpor- monthly cleaning task lists;
tation system based on multimodal transportation the Company optimizes energy utilization structure while
ensuring logistics efficiency. Protocols should detail cleaning guidance and frequencies for various lab
areas (e.g. workbenches equipment surfaces floors).Case Green Upgrading of Reagent Packaging
Define responsibility allocation
The Company incorporates environmental protection concepts into packaging design actively promotes the
action of de-plasticizing packaging replaces petrochemical-based EPE with plant-based all-paper materials Clearly define the roles and responsibilities for lab cleaning tasks;
and increases the use of recycled materials. In 2024 we specially optimized the inner packaging of reagents Encourage lab members to provide feedback on cleaning processes for
transitioning the G400 reagent packaging from pearl cotton to cardboard materials. This change enabled us to continuous improvement;
achieve a fully paper-based and environmentally friendly structure for both the inner and outer packaging of
our reagent kits. Regularly inspect lab cleanliness to ensure adherence to protocols.Case Paper Box Recycling Project
Use appropriate cleaning agents and tools
The Warehouse Department has taken measures Select suitable cleaning agents based on the lab's specific needs such as
to reduce the significant loss and cost associated residue-free disinfectants for work surfaces;
using new cardboard boxes for packing and trans-
portation at the Second Office of Goods Delivery in Prepare adequate cleaning tools (e.g. paper towels spray bottles brushes
Anliang. These measures involve sorting and protective gloves) and ensure they are suitable for the lab environment.returning cardboard boxes to the Anliang ware-
house for reuse after goods delivery collecting
undamaged boxes from production disassembly
and screening cleaning and recycling boxes to
achieve their secondary use. Following the Implement waste management plan
improvement the monthly usage of new card-
board boxes can be reduced by approximately 110 Enact an effective waste management plan to promptly clean up waste
which not only lowers packaging costs but also generated in the lab including chemical biohazardous and general waste;
enhances resource recycling in the warehousing
and logistics process achieving dual benefits of Ensure waste is correctly categorized stored and disposed of.cost savings and environmental benefits. Recycling of Cardboard Boxes
Provide training and educational programs
Regularly conduct cleaning and safety training for lab personnel to emphasize
the key role of cleanliness in ensuring experimental accuracy and safety;
Encourage lab members to monitor each other to ensure effective implemen-
tation of cleaning protocols.
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Innovative Green Cold Chain Transportation
Case Uses Circular Insulation Boxes to Support
Low-Carbon Logistics Practices
Focusing on the low-carbon goal of cold chain transportation
the Company is driving innovation. In China's domestic
less-than-truckload cold chain sector we utilize circular insulat-
ed boxes for all packaging maintaining temperature control
from start to finish. This move not only completely eliminates the
need for refrigerants like ice packs and dry ice but also does
away with the necessity of buying extra insulation boxes and
thermometers while establishing a recycling system. We
introduce miniaturized insulated boxes for international transpor-
tation to cater to the needs of low-volume business shipping and
reduce dry ice consumption. From January to October 2024 the
Company's cold chain less-than-truckload business in China
utilized a cumulative total of 18691 incubators across various
models. If we calculate based on the traditional "dry ice + foam
box" method which consumes 30 kilograms of dry ice per use
the cumulative reduction in dry ice usage exceeded 560 tons.This significant reduction in dry ice consumption substantially
lowered carbon emissions establishing a benchmark for the
industry's green transformation in cold chain transportation
through innovative packaging practices.Corporate laboratory site photos
Broadening the Range of Carbon Footprint Certification Products and Creating a Green
Case Product Ecosystem
In 2024 we continued to focus on green and low-carbon
development integrating carbon footprint management
into the full product lifecycle. In 2024 the Company
expanded its carbon footprint product certifications from
DNBSEQ-G400 to other sequencing equipment such as
DNBSEQ-T7 and DNBSEQ-G99 and to supporting products
such as DNBSEQ-G99 high-throughput sequencing kit
DNBSEQ-G400 high-throughput sequencing kit
DNBSEQ-T7RS high-throughput sequencing kit MGIEasy
saliva sample collection kit MGIEasy fecal genome and
DNA (Meta) extraction kit.By conducting a systematical analysis of the carbon
emissions associated with our products — spanning raw
material procurement production transportation use
and waste disposal — and accurately quantifying carbon
footprint data we will continue to enhance product
carbon performance and develop a more sustainable
low-carbon ecosystem for life sciences and technology
products.
1311 1232Appendices
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Appendices
Appendix I: About the Report
Overview
HK Co. refers to CGI HONGKONG CO.LIMITED
This is the second Environmental Social and Governance (ESG) report issued by MGI Tech Co. Ltd. also known as "MGI
Tech" "MGI" "the Company" or "we". The Report is designed to communicate our strategies management practices and MGI Tech refers to MGI Tech R&D HONG KONG CO. LIMITED
achievements in environmental protection social responsibility and corporate governance to our stakeholders.MGI International Sales refers to MGI INTERNATIONAL SALES CO. LIMITED
Reporting Period
MGI Innovation refers to MGI Innovation Co. Limited
This annual report covers the period from January 1 to December 31 2024. Some content may extend beyond this
timeframe and explanations will be provided where necessary. EGI HK refers to EGI HONG KONG CO.LIMITED
Corporate Entities Covered in This Report EGI US refers to EGI USA Inc.MGI Tech MGI the Company We refers to MGI Tech Co. Ltd. CG US refers to Complete Genomics Inc.Wuhan MGI refers to Wuhan MGI Tech Co.Ltd. CG LLC refers to Complete Genomics LLC
Software Company refers to MGI Shenzhen Software Tech Co. Ltd. MGI HK refers to MGI Tech HONG KONG CO.LIMITED
IMABOT SHENZHEN refers to IMABOT SHENZHEN MEDICAL CO. LTD MGI Latvia refers to Latvia MGI Tech SIA
IMABOT KUNSHAN refers to IMABOT KUNSHAN MEDICAL CO. LTD MGI Japan refers to MGI Tech Japan Co. Ltd.Qingdao MGl refers to Qingdao MGl Tech Co.Ltd. MGI Americas refers to MGI Americas Inc
Qingdao DGI refers to DGI TECH (QING DAO) CO. LIMITED MGI Dubai refers to MGI Tech Middle East DMCC
EGI TECH (SHEN ZHEN) refers to EGI TECH (SHEN ZHEN) CO. LIMITED MGI Singapore refers to MGI TECH SINGAPORE PTE.LTD.EGI TECH (QING DAO) refers to EGI TECH (QING DAO) CO. LIMITED MGI TECH KOREA CO. LTD. refers to MGI TECH KOREA CO. LTD.IMABOT HAINAN refers to IMABOT HAINAN SOFTWARE TECH CO. LTD MGI AUSTRALIA PTY LTD refers to MGI AUSTRALIA PTY LTD
Yiyang MGI refers to Hunan Yiyang MGl Tech Co.Ltd MGI Tech GmbH refers to MGI Tech GmbH
Hainan MGI refers to Hainan MGI Tech Co. Ltd. MGI TECH UK LTD refers to MGI TECH UK LTD
MGl Sales refers to Shenzhen MGl Sales Co.Ltd MGI Tech FR SARL refers to MGI Tech FR SARL
Shanghai MGI refers to Shanghai MGl Tech Co.Ltd MGI BRASIL LTDA refers to MGI BRASIL LTDA
Shenzhen MGI Biotech refers to Shenzhen MGI Bioelectronics Tech Co. Ltd. MGI TECH NEW ZEALAND LIMITED refers to MGI TECH NEW ZEALAND LIMITED
133 134Appendices
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Basis of Preparation Appendix II: Sustainability Performance
This report was prepared under the guidance of the Guidelines No.14 of the Shanghai Stock Exchange for Self-Regulation
of Listed Companies—Sustainability Report (Trial) and by reference to the GRI Standards issued by the Global Sustainabil-
ity Standards Board (GSSB) industry standards issued by the Sustainability Accounting Standards Board (SASB) the
International Financial Reporting Standards issued by the International Sustainability Standards Board (ISSB) the Europe-
an Sustainability Reporting Standards (ESRSs) issued by the European Commission and the United Nations' Sustainable Indicators Unit 2024 Data
Development Goals (SDGs): A Corporate Action Guide. Revenue yuan 3012531769.09
Net profit attributable to shareholders yuan -600827020.56
Data Source and Reliability Statement Basic earnings per share yuan -1.46
The Report utilizes data from various sources including public data from government departments internal statistical
reports third-party survey questionnaires administrative documents and reports and third-party evaluation interviews. Total assets yuan 10314855725.90
All content and data disclosed in this report have been reviewed and approved by the Board of Directors of MGI Tech Co. Financial
Ltd. All content and data disclosed in this report have been reviewed and approved by the Board of Directors of MGI Tech Performance Net assets attributable to shareholders yuan 7890161750.38
Co. Ltd.Debt-to-asset ratio % 23.51
MGI Tech commits that there are no false records misleading statements or significant omissions in the content of this
report. The Board of Directors of the Company assumes individual and joint responsibility for the truthfulness accuracy Total amount of taxes and fees paid in the year 10 thousand yuan 29140.64
and completeness of its content.Forward-Looking Statements
The forward-looking statements in this report are founded on the Company and its subsidiaries' forecasts assumptions
and expectations concerning current production and operational conditions. Actual outcomes may vary from those Indicators Unit 2024 Data
projected in this report as they may be influenced by risk factors and force majeure events that could impact the imple- Corporate Governance
mentation process.Number of shareholders' meetings held Times 3
Report Access Number of board meetings held Times 7
This report is published in both printed and electronic forms with printed copies available in the Company's securities
Number of meetings held for the Audit Committee Times 6
department.The electronic version can be accessed and downloaded on the Company's official website at https://www.mgi-tech.com/. Number of meetings held for the Remuneration Committee Times 4
Number of meetings held for the Special Commit-
tee of Independent Directors Times 4
Contact information Corporate overnance Number of board members People 10
MGI Tech encourages all stakeholders to provide suggestions or feedback on the Company's sustainable development Performance
and social responsibility management. For any related matters please contact MGI_IR@mgi-tech.com. Male directors People 8
Female directors People 2
Independent directors People 4
Non-independent directors People 6
135 136Appendices
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IndicatIonrdsicators Unit 2024 Data Indicators Unit 2024 Data
Investor Relations Supply Chain Management
Number of investor communication events hosted Sessions 83 Number of manufacturers reviewed Suppliers 275
Audit completion rate % 100
Number of institutional investor visits People 730
Total number of suppliers Suppliers 745
Total number of institutes visits Institutes 455
Suppliers in Chinese Mainland Suppliers 674
Corporate Number of inquiries addressed on "E-SSE" platform Inquiries 28 Suppliers from Hong Kong Macao Taiwan and overseas Suppliers 71
overnance
Performance Query resolution rate on "E-SSE" platform % 100 Number of local suppliers (within Guangdong Province) Suppliers 329
Number of public disclosures issued Pieces 155 Number of suppliers with ISO 13485 quality system certification Suppliers 53
Number of suppliers with ISO 14001 environmental
Number of internal control inspections Times 11 management system certification
Suppliers 27
Number of suppliers with ISO 45001 occupational health
and safety system certifications Suppliers 7
Number of suppliers with ISO 9001 quality system certification Suppliers 220
Indicators Unit 2024 Data Employment
R&D Innovation Total number of employees People 2604
R&D investment 10000 yuan 81101.35 Number of male employees People 1482
R&D staffing number People 812 Number of female employees People 1122
Social
R&D personnel ratio % 31.18 Performance Employees under labor contract People 2603
Percentage of R&D personnel holding Master's Degrees or higher % 60.47 Other employees (rehired retirees) People 1
Number of patent applications Inquiries 326 Chinese Mainland Hong Kong Macao and Taiwan People 2085
Number of patents granted Inquiries 139 Total number of overseas staff People 519
Number of utility model patent applications Inquiries 73 Americas region People 199
Number of utility model patents granted Inquiries 41 Europe-Africa region People 198
Social Number of design patent applications Inquiries 40 Asia-Pacific region People 122
Performance Number of design patents granted Inquiries 32 30 years old and below People 835
Number of software copyright applications Inquiries 77 31 to 40 years old People 1380
Number of software copyrights registered Inquiries 84 41 to 50 years old People 298
Product quality and customer service 51 years old and above People 91
Quality training coverage rate % 100 Bachelor's Degree or higher People 2391
Total hours of quality training Hours 2560 Higher Vocational Education (HVE) Diploma People 177
Number of product recalls Times 0 Vocational secondary education and below People 36
Complaints on customer privacy violation received Complaints 0
137 138Appendices
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Indicators Unit 2024 Data Indicators Unit 2024 Data
Total number of grassroots employees People 1413 Investment in environmental protection 10000 yuan 224.9
Total investment in energy conservation
Total number of key employees People 992 and emissions reduction 10000 yuan 44.43
Total number of core employees People 178 Environmental protection training sessions conducted Times 12
Number of participants in environmental
Total number of employees at the core management level People 73 protection training Person-times 3162
Total number of female employees at the core manage- People 24 Total consumption of electricity kW · h 48228146.59ment level
Total number of strategic employees People 21 Diesel Liters 563.00
Total number of employees at the strategic manage-
ment level People 21
Gasoline Liters 4200.00
Total number of female employees at the strategic People 4 Natural gas Cubic meters 50455.00management level
Proportion of production personnel % 20.31 Comprehensive energy consumption Tons of standard coal 5987.99
Comprehensive energy consumption per
Proportion of sales personnel % 34.41 10000 yuan output value Tons of standard coal/10000 yuan 0.02
Scope 1: Greenhouse gas emissions tCO e 118.51
Proportion of technical personnel % 31.18 2
% Environmental Scope 2: Greenhouse gas emissions tCO2e
25446.84
Proportion of financial personnel 2.53
Performance Total greenhouse gas emissions (Scope 1+Scope 2) tCO2e 25565.35
Proportion of administrative personnel % 11.56
Greenhouse gas emission intensity tCO2e/10000 yuan 0.08
Total employee separations People 442
Total water consumption Cubic meters 218313.54
Social Employee turnover rate % 13.36
Performance Water consumption intensity Cubic meters/10000 yuan 0.72
Employee training
Packaging Material Used: Lumber Tons 147.34
Total duration of training received by employees Hours 143297.00
Total amount of general solid waste Tons 73.20
Average duration of employee training Hours 55.03
Total amount of recyclable waste Tons 4.20
Total number of training hours received by male employees Hours 81553.82
Total amount of hazardous waste Tons 323.97
Total number of training hours received by female employees Hours 61743.18
Total amount of wastewater discharge Cubic meters 21071.62
Number of training participants Person-times 4426
Total amount of waste gas emissions Cubic meters 179630072.00
Number of male employees receiving training Person-times 2519
Number of female employees receiving training Person-times 1907
Occupational Health and Safety
Safety production investment 10000 yuan 283.7
Number of employees in occupational disease risk positions People 280
Number of employees screened for occupational diseases People 280
Number of employees diagnosed with occupational disease People 0
139 140Appendices
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Appendix III: Index of Indicators
ISSB ESRS Guidelines No.14 of the Shanghai Stock ISSB ESRS Guidelines No.14 of the Shanghai Stock
Report Framework GRI Standard 2021 SASB Exchange for Self-Regulation of Listed Report Framework GRI Standard 2021 SASB Exchange for Self-Regulation of Listed Guidelines Guidelines Companies—Sustainability Report (Trial) Guidelines Guidelines Companies—Sustainability Report (Trial)
Message From Chairman S1 S2 ESRS 1 2-13 Leader in Compliance Governance
About MGI Tech Corporate Governance S1 ESRS G1 2-9 2-10 2-11 2-16 2-27
Company Profile S1 ESRS 2 2-1 2-6
Company Development Compliance Operations S1 ESRS G1 2-27
Milestones 2-1 Risk Management S1 ESRS G1 2-27
Company Awards 2-1 Data Security and Privacy
Protection S1 201-1 Article 48
Sustainable Development Transformation
Responsible Business 2-15 2-27 205-1 HC-MS-240a.2.Sustainable Development 2-9 2-22 2-29 3-1 Operations S1 ESRS G1 205-3 206-1 417-1 HC-MS-270a.2. Articles 55 and 56
Management S1 ESRS 1 Article 53 HC-MS-510a.1.3-2 3-3
Key ESG Risks and
Opportunities S1 S2 2-6 2-25 Article 52 Value Growth Partner
Sustainable Development
Process in 2024 S1 S2 2-4 Employee Employment 401-1 401-2 401-3
Tools for Measuring S1 3-3 and Management
S1 ESRS S1 406-1 407-1 408-1
Sustainable Development 409-1
Leading Life Science Innovation Employee Compensation S1 ESRS S1 402-1 402-2 405-1
Enhancing the Accessibility and Benefits
of Genomics S1 203-1 203-2 2-6 HC-MS-240a.1 Article 50
Empowering a Healthy Employee Career S1 203-1 203-2 2-6 Development and Training S1 ESRS S3 404-1 404-2 404-3Future
Driving Sustainable
Practices S1 203-1 203-2 2-6 Occupational Health 403-1 403-2 403-3 S1 ESRS S1 403-4 403-5 403-6
Jointly Building an and Safety
Industrial Ecosystem S1 203-1 203-2 2-6 Article 46 403-7 403-8
Advancing Life Science Tools for Future Healthcare Fulfilling Social Responsibility S1 ESRS S3 413-1 HC-MS-410a.2. Articles 39 and 40
R&D Innovation 201-1 203-1 203-2 HC-MS-410a.1. Article 42 Guardian of Our Environment
HC-MS-250a.1. ESRS E1 201-2 304-1 304-2 Articles 21 to 28
201-1 418-1 416-1 Addressing Climate S2 ESRS E3 304-3 305-1 305-2 HC-MS-410a.1.Quality Management S1 ESRS S4 HC-MS-250a.2. Article 47 Change ESRS E4 305-3 305-4 Article 32
HC-MS-250a.3.Environmental
Management S1 203-1 Article 33
Global Services S1 ESRS S4 418-1 Article 47 Resource
Utilization S2 ESRS E5 301-1 303-1 303-5
HC-MS-430a.1. Waste 2-27 2-28 303-2
Sustainable Supply Chain S1 201-1 403-8 418-1 Management
S1 306-1 306-2 Articles 30 and 31
HC-MS-430a.2. Article 45
416-1416-2
HC-MS-430a.3. Green Operations S1 203-1 Articles 36 and 37
Appendixes S1 S2 ESRS 1 2-2 2-3 2-4
141 142Appendices
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Appendix IV: List of Laws and Regulations
Laws and Regulations of China Corresponding Chapters Key Overseas Laws and Regulations Corresponding Chapters
Company Law of the People's Republic of China U.S. Foreign Corrupt Practices Act (FCPA)
Securities Law of the People's Republic of China U.S. Federal Trade Commission Act
Criminal Law of the People's Republic of China U.K. The Bribery Act 2010
Rules Governing the Listing of Stocks on the Shanghai Stock Exchange EU the General Data Protection Regulation (GDPR)
Leader in Compliance
Administrative Measures on Information Disclosure by Listed Companies Leader in Compliance UK General Data Protection Regulation (UK GDPR)
Governance Governance
Anti-Monopoly Law of the People's Republic of China U.S. the Data Protection Act
Anti-Unfair Competition Law of the People's Republic of China U.S. Export Administration Regulations
Basic Standards for Enterprise Internal Control U.S. California Consumer Privacy Act
Data Security Law of the People's Republic of China Singapore COMMODITY TRADING ACT 1992
Guidelines for the Establishment of Ethical Review Committees for
Clinical Research Involving Humans Leading Life Science Innovation U.S. the Animal Welfare Act
Measures for the Ethical Review of Biomedical Research Involving
Humans Advancing Life Science Tools U.S. the Energy Policy Act of 2005
for Future Healthcare
Labor Contract Law of the People's Republic of China U.S. the Clean Water Act Guardian of Our
Environment
Employment Promotion Law of the People's Republic of China U.S. the Clean Air Act
Special Provisions on Labor Protection of Female Employees U.S. the Solid Waste Disposal Act
Value Growth Partner
Law of the People's Republic of China on the Protection of Minors U.S. Uniformed Services Employment and Reemployment Rights
Act (USERRA)
Public Welfare Donations Law of the People's Republic of China
U.S. Employee Rights for Workers with Disabilities Paid at Special Value Growth Partner
Energy Conservation Law of the People's Republic of China Minimum Wages EPPA
Environmental Protection Law of the People's Republic of China U.S. Pay Transparency Non-discrimination Provision
Law of the People's Republic of China on the Prevention and
Control of Water Pollution
Law of the People's Republic of China on the Prevention and
Control of Air Pollution Guardian of Our Environment
Law of the People's Republic of China on the Prevention and
Control of Environmental Pollution by Solid Waste
Law of the People's Republic of China on the Prevention and
Control of Soil Pollution
Law of the People's Republic of China on the Prevention and
Control of Environmental Noise Pollution
143 144Appendices
Message From About MGI Tech Sustainable Development Leading Life Science Advancing Life Science Tools Leader in Compliance Value Growth Guardian of Our
Chairman Transform Innovation for Future Healthcare Governance Partner Environment
Appendix V: Key Annotations Feedback
1. The environmental performance scope encompasses six major R&D and production bases including the bases in Shen- Thank you very much for taking the time to review the MGI Tech 2024 ESG Report. In our ongoing efforts to enhance our ESG
zhen Wuhan Qingdao Kunshan Changchun and Latvia. Energy consumption is calculated in accordance with the Gener- management practices and reporting quality and to elevate our ESG capabilities and standards we sincerely invite you to
al Principles for Calculation of Total Production Energy Consumption (GB2589-2020) issued by China's State Administra- provide valuable feedback and suggestions on this report. We will carefully consider your feedback and suggestions and
tion for Market Regulation and National Standardization Administration. pledge to safeguard your information from unauthorized third-party access.
2. Direct emissions (Scope 1) refer to the greenhouse gas emissions generated from the consumption of natural gas
Customers Governments and regulatory agencies Others (please specify)
diesel and gasoline. Greenhouse gas emissions under Scope 1 are accounted for in accordance with the Guidelines for
Accounting and Reporting Greenhouse Gas Emissions from Industrial and Other Industry Enterprises (Trial) issued by
China's National Development and Reform Commission as well as the 2006 IPCC Guidelines for National Greenhouse Gas
Inventories issued by the Intergovernmental Panel on Climate Change (IPCC). 1. Which category of stakeholder do you belong to
3. Indirect emissions (Scope 2) refer to the greenhouse gas emissions generated from the consumption of purchased
electricity. The data calculation of greenhouse gas emissions under Scope 2 uses market-based emission factors. Green- Employees Supplier Cooperating institutions Investor Media Distributors Industry associations
house gas emissions under Scope 2 are accounted for in accordance with the national average carbon dioxide (CO2)
emission factor for electricity consumption issued by the Ministry of Ecology and Environment of the People's Republic of
China in 2022 as well as the 2006 IPCC Guidelines for National Greenhouse Gas Inventories issued by the Intergovernmen- 2. To what extent do you believe this report accurately and comprehensively reflects the Company's significant
tal Panel on Climate Change (IPCC). economic social and environmental impacts
4. Carbon emission calculation formula: Carbon emissions = Activity data (AD) * emission factor (EF). Good Very good Average Poor
5. Only a partial list of key overseas laws and regulations is provided here. The Company rigorously complies with the laws
and regulations in all jurisdictions where it operates. 3. How do you rate the responsiveness and disclosure quality of this report with regard to the issues that are of concern
to stakeholders
Good Very good Average Poor
4. How do you rate the clarity accuracy and completeness of the information indicators and data disclosed in this report
Good Very good Average Poor
5. How do you evaluate the readability of this report including the logical structure content design language and format design
Good Very good Average Poor
6. What suggestions do you have for our future ESG reports
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