Environmental Social

and Governance Report

Improving Lives with Innovative Imaging Technologies

2023

iRay Technology Company Limited

Stock code: 688301.SH

i m a g i n g t h e f u t u r e01 iRay Technology ESG Report 2023 02

Table of content

About the Report 03

Message from the Chairman 05

About Us 07

Sound Corporate Governance for Sustainable Development

27

ESG Topics in 2023

010203

Operational Excellence and Innovation-driven Strategy 29 Employee Care and Talent Development 46 Low Carbon and Green Development 58

Comprehensive Quality Management 31 Protecting Employees’ Rights and Interests 47 Implementing Environmental Management 59

Boosting R&D Innovation 36 Optimising Employees’ Benefits 49 Strengthening Emmision Management 60

Providing Quality Services 44 Empowering Employee Development 51 Improving Resource Efficiency 61

Ensuring Health and Safety 54 Responding to Climate Change 64

Practising Green Office 65

0405

Responsible Procurement and Resilient Management 68 Caring for Society and Shouldering Responsibility 74

Improving Supply Chain Management 69

Fostering a Responsible Supply Chain 71 Feedback From Readers 7703 iRay Technology ESG Report 2023 04

About the Report

Reporting Standards

This report is the second environmental social and governance (ESG) report (hereinafter " this report" ) In this report " iRay Technology Company Limited" is referred to as " iRay Technology" "Company" or "We" . " iRay

issued by iRay Technology Company Limited after the Company's first ESG report issued in 2022. This report Technology Taicang Limited" a wholly-owned subsidiary held by iRay Technology Company Limited is referred to

aims to reflect the Company’ s init iatives and performances objectively and truthful ly in environmental as " iRay Taicang" for short iRay Advanced Material Technology (Taicang) Co. Ltd. is referred to as " iRay Advance

social and governance and other sustainability indicators to shareholders and investors customers employ- Material" for short and " iRay Imaging Technology (Haining) Limited" is referred to as " iRay Haining" for short and

ees government departments and regulators suppliers and partners the public and other stakeholders. " iRay Precision Manufacturing Haining Limited" is referred to as " iRay Precision" . "Palwex Technologies (Beijing) Co.Ltd." is referred to as "Palwex Technologies" and "High Voltage Technology Co. Ltd" is referred to as "High Voltage

” Technology" . The currency in this report is denominated in Chinese Yuan (CNY).Time Frame

This report involves the information and data from January 1 2023 to December 31 2023 (hereinafter "the Report-

ing Period"). Some of them traced back to and before 2022 and will be stated where relevant.Report Access

This report can be viewed or downloaded onl ine in both s impl if ied Chinese and Engl ish at the Shanghai Stock

Reporting Guideline Exchange website (www.sse.com.cn) and the Company's official website (www.iraygroup.com).This report is prepared with reference to the requirements and guidance for ESG information disclosure by Guide-

l ines No.1 on the Self-Regulation for Listed Companies on the Science and Technology Innovation Board of the

Shanghai Stock Exchange (the SSE STAR Market) and the Guidelines No.2 on the Self-Regulation for Listed Compa-

nies on SSE STAR Market - Voluntary Information Disclosure published by Shanghai Stock Exchange.Contact

If you have any questions or suggestions about this report please feel free to contact us via

Email: ir@iraygroup.com

Reporting Scope Tel: +86 21-50720560-8311

Fax: 4008266163-60610

Unless otherwise stated the scope of this report is aligned with that of the annual financial report. Address: Building 45 No. 1000 Jinhai Road Pudong New Area Shanghai China 20120605 iRay Technology ESG Report 2023 06

Message from Innovation-orientated pursuit of excellenceAs a leading company in the digital X-ray detector industry in China and global ly with our indus-

try-leading technology and excellent ability to innovate we take the pursuit of excellent quality as our

the Chairman unswerving goal and are dedicated to providing our customers with safer and more advanced X-ray technology and to make this technology everywhere.As of 31 December 2023 the Company has a total of 475 registered or authorised intellectual property

(IP) rights of various types (based on the date of obtaining the certificate) of which 155 are invention

patents and in 2023 there were 30 new invention patents and 33 new util ity model patents. Adhering“ The year 2023 was a year of positive growth and to the concept of "Green X-ray" we are committed to providing products with lower cl inical dose change we behaved well with solid development better images and higher efficiency and strive to create socially and environmentally friendly prod-thanks to the company's strong strategic strengthucts.and business resi l ience its unswerving proactive

s t a n c e t o s e e k b r e a k t h r o u g h s i n n e w f o r m s Working Together to Create and Share

through innovation and change and the promo- iRay Technology regards employees as valuable asset of the enterprise and is committed to creating

tion of new products and technologies to existing a workplace of diversity equality and inclusion solidarity camaraderie and harmony. The company

bus inesses . We have a lways been enterpr is ing continues to improve salary and benefit system and provided an career development stage for al l

a n d f o r g i n g a h e a d . W e e x p a n d o u r b u s i n e s s employees to fully explore their potential and realise their self-worth. Meanwhile we consider it our

layout and scope of operations whi le achieving important responsibility to protect employees' physical and mental health and do our best to provide

leapfrog progress in our product and technology. a safe and healthy working environment.Amid changes we wi l l not forget our corporate

In order to further mobilise our core team and share the fruits of development between the Company

mission of "Improving Lives with Innovative Imaging

and our employees we issued a Restricted Share and Stock Option Incentive Plan 2023 during the Re-

Technologies" integrate the concept of sustain-

porting Period granting 3 million shares to incentive recipients with a total of 455 employees receiving

able development into our corporate strategy the first incentive we believe that this action wil l further promote the sustainable development and

and operations and promote corporate develop- common growth of the Company and our employees.ment while not forgetting our social responsibility

thus contributing to the well-being of the global Low Carbon and Green Development

iRay Technology has always been practicing the concept of green development and actively assum-

community of health for all.ing the responsibil ity of corporate environmental governance while pursuing economic benefits. We

” create a low-carbon and environmentally friendly production and operation and continue to improve energy efficiency through the optimisation of processes and equipment. We practice green office

initiatives and gradually build the green innovation competitiveness of the enterprise contributing to

iRay Technology Company Limited the fight against global climate change. In addition we practice green and sustainable procurement

and work together with our partners to build a sustainable industrial chain and for a better future.Chairman Tieer Gu

Long as the journey is we will reach our destination if we stay the course; difficult as the task is we will

get the job done if we keep working at i t . In the upcoming year iRay Technology wi l l cont inue to

adhere to its corporate mission of " Improving Lives with Innovative Imaging Technologies" maintain an

enterprising attitude and work together with all stakeholders across entire value chain to explore the

road to resilient development and achieve sustainable long-term value.07 iRay Technology ESG Report 2023 08

About Us

The types of detectors for medical and industrial applications that the Company has mass production capacity

iRay Technology is a digital X-ray key component and comprehensive solution provider that is oriented by the are as follows:

technology trend in the full value chain and aligns its technological capability with international standards. Found-

ed in 2011 and listed on the Shanghai Stock Exchange in 2020 iRay is the first A-share listed company engaged in Field Detector Range / Type Application

the development and manufacturing of key medical device components. To achieve the mission of "Improving Lives

Used in fixed digital radiography (DR) to support digital X-ray

with Innovative Imaging Technologies" iRay Technology has been stuck to the vision of " iRay X-ray Technology General Tethed Dynamic

" diagnosis of human chest abdomen bone soft tissue and gas-Everywhere helps customers worldwide improve medical diagnosis and treatment and increases the accuracy of Series / Static trointestinal tract

industrial testing or security inspection improves the production efficiency of customers and reduces production

costs. With a focus on the core values of " Innovation Excellence Collaboration and Win-Win" the Company contin-

General Wireless Used in mobile DR and fixed DR to support digital X-ray diag-

ues to use technological innovation and excellent products and services to accelerate the strategic upgrading of Static

Series nosis of human chest abdomen bone and soft tissue

the industry value chain so as to create differentiated value for customers in more subdivided fields and provide

mutual development opportunities for suppliers.Used in X-ray imaging equipment for the veterinary purpose

Veterinary Series Dynamic to support the digital X-ray photography and diagnosis needs

/ Static

Vision of all parts in small and large animals

iRay X-ray Technology Everywhere Used for C-arm system/digital subtraction angiography (DSA)

C-arm Series Dynamic to support orthopedic surgery and cardiography neuroangi-

ography and other interventions

Medical Used in ful l-field digital mammography (FFDM) to support ful l

Mammography Dynamic

Corporate field digital mammography and digital tomography 3D imag-

Series / Static

culture ing and to screen and diagnose human breast cancer

Used in radiotherapy equipment and can be integrated with

Radiotherapy

Dynamic the l inear accelerator in X-ray medicine radiosurgery appli-

Series

Value cations and proton therapy system

Innovation Excellence Mission

Improving Lives with Innovative

Collaboration and Win-Win Dental Intraoral Used in dental intraoral X-ray system to support the cl inical

Imaging Technologies StaticSeries diagnosis of root canal

Used in dental cone-beam computed tomography (CBCT) to

With outstanding R&D and innovation capabilities the Company has become one of the few digital X-ray detector Dental CBCT Dynamic support clinical imaging applications such as dental diagnosis

manufacturers in the world that masters the four main sensor technologies of amorphous silicon indium gallium zinc Series / Static orthodontics implant-related cephalometric radiography and

oxide (IGZO) flexible screen and complementary metal oxide semiconductor (CMOS) and has the capability of mass panoramic radiography

production at the same time. In addition the Company has also mastered the core technologies related to scintilla-

tion material of detector read out integrated circuit (ROIC) and medical image algorithm and manufacturing tech- Battery Inspection Used in 2D and 3D industrial systems for Electric Vehicle (EV)

nology of core components inside digital X-ray equipment such the high-voltage insulation technology high-voltage DynamicSeries battery / lithium battery inspection

inverter power topology technology special auxi l iary power technology barium tungsten cathode technology

liquid metal bearing technology and flying focal spot technology. Integrated circuit Used for non-destructive testing (NDT) inspection of integrat-

a n d e l e c t r o n i c ed circuit and electronic manufacturing involving the manufac-

Given the sol id foundation built up on its core technology iRay Technology takes every chance to optimise the Dynamicm a n u f a c t u r i n g tur ing/assembly of e lectron ic components pr inted c i rcu i t

product and business layout. The Company’ s key products include such components as flat panel detector l inear inspection Series board (PCB) printing semiconductor packaging etc.detector and tubes integrated X-ray source and high-voltage generator. At the same time by virtue of advanced

digital imaging software working in collaboration with panel detectors we provide tailored image chain solutions to Industrial Cast ing Inspec- Dynamic Used for NDT inspection of casting inspection such as metal

customers in various industries like medical and industrial sectors. In terms of the medical field X-ray detectors are tion Series / Static castings structural parts and pressure vessels etc

mainly used for medical diagnosis and treatment. Our products can produce clear images of high frame rate and

high resolution in screening diagnosing and treating human and animal diseases with low radiation helping doctors Used in portable industrial NDT systems for pipeline welding

P ipel ine Inspec-

make more accurate professional judgments. In the industrial field the products are basically applied to portable Static qual i ty inspect ion such as ident i fy ing weld bead surface

tion Series

non-destructive testing power battery inspection semiconductor back-end package inspection security checks pores and cracks etc

and other scenarios to provide customers with a lightweight long-lasting high protection level inspection experi-

Used for different aisle size security machines or mobile secu-

ence. Meanwhile according to the different working modes of digital X-ray detectors the Company has two cate- Security Inspec- Dynamic

r i ty inspect ion devices for luggage parcel inspect ion and

gories of products: static and dynamic digital X-ray detectors. In key dynamic areas the Company has overtaken tion Series / Static

public security inspection

foreign enterprises by developing core technologies such as CMOS and IGZO to promote domestic substitution.09 iRay Technology ESG Report 2023 10

iRay Technology is a well-known company in the global digital X-ray detector industry and has been recognised

by many leading manufacturers in the medical and industrial fields. As of December 31 2023 products produced

by the Company have been sold to more than 80 countries and regions with a total global shipment of over 300

thousand X-ray detectors.NDT1717BA (First Non-Destructive Detector) Mercu 0810DE (First Duel-Energy CT Detector)

Mammo 1012P Mammography (Ultra High Resolution Panel Detector CMOS Mammography) Pluto 1216X (High-end DSA CMOS Detector)

DTDI128S1 (First High-speed TDI Scanning Camera System) Mars 1717V5 (First Multifunctional Motion Detector)11 iRay Technology ESG Report 2023 12

History

From static to dynamic from the medical field to the industrial field after 13 years of development the Company has gradually transformed from a static medical detector enterprise to a supplier of X-ray key components and comprehensive X-ray solutions

and has become a well-known enterprise specializing in key components such as detectors high-voltage generator integrated X-ray sources and Anti Scatter Grid (ASG) etc. and comprehensive X-ray solutions. In 2023 we kept exploring new fields. While

realising cross-technology innovation for scientific instruments we broke the equipment monopoly in the field of closed microfocus X-ray tubes. We translated our forward-looking strategies into actions by positioning our factories and R&D centres around

the world so as to lead the upgrade of digital X-ray imaging technology.Stage I Establishment and R&D Stage I Marketdevelopment Stage III Scale-up Stage IV Locally leading

20112012-20132014-20172018-2023

2014

Strategic cooperat ion with

Konica and Wandong Medical 2016 2022

Issuance of the first convert-

Launch of the f i rst wire less Strategic cooperat ion with

ible corporate bond

product Shanghai United Imaging

Completed investments in key

U.S. leader in the economical Shipped nearly 40oo units

components and integrated

DR detector industry

solutionsfor X-ravs

20202023

2018

2012 S u c c e s s f u l l y l i s t e d o n t h e The Haining and Taicang Phase II

Launch or the first IGZO flat ShanghaiStock ExchangeSTAR factory put into operation

Ces ium iodide pro ject was 2015 panel detector Market The U.S.factory put into operation

launched and put into opera-

Launch of the first dynamic Successfu l development of Mass produceddental detec-

Mass produced microfocus closed

tion dental products tors and LDA ray tubesproduct

No.1 in domestic flat panel 2017 Open up a new track of scientific

detector shipments instruments (Launch of QRGA OIS Started to invest in new f ie lds

series products)

such as medical dynamicsindus-

try petsand security check

Taicang factory putinto operation 2021

Nearly 1ooo units shipped Mass produced detectors

f o r n e w e n e r g y b a t t e r y

2019 inspection

2013 Able to manufacture flexible

2011 X-ray detector

S t r a t e g i c c o o p e r a t i o n Started operat ion of the

iRay Technology was founded with Siemens and Philips Korean plant

Total Shipment exceeded

Completed the test ing and Shipped over 11ooo unjts

1.ooo units

delivery of the first product

breaking foreign monopolies

on the domestic market13 iRay Technology ESG Report 2023 14

Memorabilia of iRay Technology in 2023

iRay Technology has been working on detectors for more than ten years embarks on exploring new areas and making technological breakthroughs. The Company has built up excellent reputation within the industry and has won widespread recognition and

praise from the society. In 2023 with its strong comprehensive strength continuous innovation of advanced products and high-quality patent accumulation the Company won various awards for active participation in peer-to-peer exchanges contributions

to the industrial development and multiple new ground-breaking products.

01 Recognised as "National Enterprise Technology Centre" 04 Reputation built up with brand strength

i R a y T e c h n o l o g y t o g e t h e r w i t h a n o t h e r 6 e n t e r p r i s e s i n Thanks to its cooperation with leading companies in the X-ray

Shanghai was selected as "National Enterprise Technology imaging industry for years and its high quality products and

Centre" (30th Batch) in 2023 . The title of National Enterprise services iRay Technology received continuous recognit ions

Technology Centre is one of the most inf luent ia l technical from var ious customers inc luding the 2023 Neusoft - Out-

innovation platforms granted by departments of the National standing Supplier Award and the 2023 Carestream - Inno-

Development and Reform Commission Ministry of Science and vation Award .Technology Min istry of F inance General Administrat ion of

Customs State Taxation Administration. It comprehensively

recognises the technological accumulation and innovative tal-

ents of the winning companies.

05 Earnest practice of the original purpose of boosting the industrial development

Strength recognised by the government

At the European Congress of Radiology (ECR) in March 2023

iRay Technology exhibited four technologies: wireless Intelli-

The Company gained high recognition by the Shanghai Munici- gent Automatic Exposure Control (iAEC)/Intelligent Scattered

pal People’ s Government with three honourary titles of "Inno- Ray Removal Algorithm (iGrid)/Automatic Exposure Detection

vative Enterprise Headquarters" "Private Enterprise Head- for Full-Fledged Plates (iAED)/Imaging of Dual-Energy (iDE) as

quarters" and "Regional Headquarters in Pudong" for i ts well as a full range of CMOS flat panel detectors and high-volt-

industrial role resource allocation sci-tech innovation quality age generators.and efficiency functional complexity leading effects and eco-

nomic contribution.At the China International Medical Equipment Fair (CMEF) in

May 2023 iRay Technology launched Pluto 1212X/1216X a me-

dium-view CMOS flat panel detector for interventional diag-

n o s i s a n d t r e a t m e n t o f h e a r t h e a d a b d o m e n a n d l o w e r

03 Innovation excellence winning national honours

extremity.Fol lowing the "Pudong High-Value Patent Award" and the

title of "Shanghai Intellectual Property Demonstration En-

terprise" iRay Technology was then awarded the title of "Na- At the Radiological Society of North America (RSNA) in Novem-

tional Intellectual Property Demonstration Enterprise" by ber 2023 iRay Technology demonstrated its optimised intell i-

China National Intellectual Property Administration after pro- gent products and innovative wireless dynamic multifunction

cedures of enterpr ise evaluat ion recommendation review f lat panel detectors . iRay Technology practices its or iginal

and conf irmat ion . These awards i l lustrate the Company’ s i n t e n t i o n o f b o o s t i n g t h e i n d u s t r i a l d e v e l o p m e n t w i t h i t s

strength in IP management and its leading innovation excel- strength in hardcore technology.lence and core competitiveness.15 iRay Technology ESG Report 2023 16

06 A step forward in detector R&D: from single-energy to dual-energy 09 Accelerated implementation of the "one headquarters and six factories" layout

iRay Technology introduced Mercu 0810DE the first single-ex- iRay’ s Taicang factory phase I I was put into production; the

posure dual-energy X-ray detector for dental CBCT and pan- infrastructure of the Hefei factory was basical ly completed;

oramic imaging. Supported by iRay’ s patented dual-energy the U .S . factory was in operat ion . The number of factor ies

technology and equipped with double-layer thin f i lm transis- worldwide reached six the factories are in Jiangsu Taicang

tors (TFT) and scinti l lation materials in different thickness this Zhe j iang Hain ing Anhu i Hefe i Chengdu Seou l (Korea) and

model enables s ingle-energy scanning of radiation sources. Cleveland (U .S . ) . The headquarters and R&D centre in Cam-

Combined with mathematical algorithms this product gener- bridge (an R&D and innovation base dedicated to the R&D of

ates standard images as wel l as images of soft t issues and key technologies used in digital X-ray detectors) started the

images of bones with one exposure. Apart from shortening main structure construction. iRay Technology translated its for-

examination t ime and dramatical ly reducing radiation to the ward-looking strategies into actions to lead the upgrade of

patient the detector also solves the problem of motion artifact digital X-ray imaging technology across the world.exist ing in the dual-energy system that requires two expo-

sures.

10 A global presence

07 Active exploring in the field of scientific instruments

iRay Technology upgraded its overseas service system. The U.S.iRay Technology launched its first Residual Gas Analyser (RGA) technical services centre has increased manpower and equip-

series product with completely independent intellectual prop- ment to provide support on maintenance and on-site service.erty rights - QRGA OIS series RGA realising cross-technology We also set up a new technical service centre in Chennai India

innovation for scientific instruments. (technical services centre amounting to 9 globally).As a derivative of Mass Spectrometer RGA can facil itate pro- In doing so iRay Technology improved its technical support and

duct ion and enhance eff ic iency after being integrated into services for overseas markets and customers.intell igent manufacturing systems thus gaining wide applica-

tion in semiconductor manufacturing and display panel manu-

facturing ( including Organic Light-Emitting Diode OLED). The

launch of this product represents a leap forward of iRay Tech-

nology in the localisation of a further core component.

11 Expansion of the equity incentive system

08 Breaking the monopoly with 180kV microfocus closed ray tube On 14 October 2023 iRay Technology released the restricted

stock and stock option incentive scheme (draft) proposing to

grant 3 mill ion stocks (including 1 mill ion restricted stocks and 2

A f t e r y e a r s o f p l a n n i n g a n d i n v e s t m e n t i R a y T e c h n o l o g y mill ion stock options) to those deserving incentives accounting

achieved the mass production of 90kV 130kV and 150kV micro- for 2.95% of the total share capital as at the announcement.focus closed ray tubes in 2023 which greatly accelerated the The first phase of the scheme covered a broad group of 455

loca l i sed product ion of key components for on l ine/off l ine recipients 36.78% of the total number of employees in 2022.h igh-precis ion industr ia l inspect ion equipment . In the same Among them the undiscounted stock options are mainly grant-

year the Company completed the research and development ed to middle and sen ior managements demonstrat ing the

of the 180kV microfocus closed ray tubes which broke the mo- Company’ s confidence in long-term development and stock

nopoly by imported products in this field. price.17 iRay Technology ESG Report 2023 18

During the Reporting Period on the basis of maintaining good communication with investors we established an

Sound Corporate Governance for Investor Relations Department to strengthen the response to the concerns of the secondary market about iRay

Technology and further improve the investor communication mechanism. Our Investor Relat ions Department

Sustainable Development headed by the Assistant Vice President conducts joint investor communication activities with the Board Office on a day-to-day basis including organizing investor open day in iRay Haining and iRay Hefei to promote on-site visits

and face-to-face exchanges with investors. We also conducted reverse roadshows in Bei j ing Guangzhou and

Sustainable and healthy development of a company necessitates sound corporate governance. Attaching great Shenzhen actively participated in strategy meetings and organized regular report conference calls. At the same

importance to governance codes iRay Technology strictly adheres to the Company Law of the People 's Republic time during the Reporting Period we organised 4 performance explanation sessions participated in 1 collective

of China the Securities Law of the People 's Republic of China the Code of Corporate Governance for Listed Com- roadshow of Shanghai Stock Exchange for high quality development companies issued 87 announcements and an-

swered 20 investor questions through Shanghai Stock Exchange E Interactive Platform which further strengthened

panies and relevant laws and regulations. In addition the Company effectively implements the Articles of Associa-

the quality of investor communication and improved the transparency of information. In order to actively receive

tion to improve the governance structure strengthens information disclosure and investor relation management

investors' opinions and feedback we set up a dedicated telephone hotline and e-mail for investor relations during

promotes modernisation of governance capabilities and drives high-quality development of the Company. the Reporting Period and treated online questions calls and inquiries on investment in a serious and responsible

manner so as to improve the quality of investor communication and interaction.Enhancing Corporate Governance

Hotline E-mail

iRay Technology has established a governance structure with shareholder meetings board of directors superviso-

021-50720560-8311 ir@iraygroup.com

ry board and senior management as the main body structure. This structure standardises the operational man-

agement process and provides organisational assurance for eff ic ient and stable operations. The Company 's

board of directors has established audit committee nomination committee remuneration and appraisal commit-

tee strategic committee and independent director committe with clear responsibilities for each committee ensur- Case iRay Technology participated in the "Roadshow of Shanghai Stock Exchange for High

ing rational allocation of resources and scientific and efficient decision-making. As of December 31 2023 the Com- Quality Development - Livelihood Service" event.pany's board of directors has 8 directors including 3 independent directors. During the Reporting Period the Com-

On 24th October 2023 iRay Technology sent representatives to participate in the roadshow for high quality

pany held 20 board meetings and committees meetings and reviewed 62 proposals.development companies hosted by the Shanghai Stock Exchange. Our representatives made a presentation

on the company's business core technology corporate advantages and other aspects. In the future with a

Shareholder meeting focus on the national strategic planning international leading trends and with innovation as the driving

force iRay Technology will strive for advanced manufacturing and high-end equipment in the digital imaging

industry. In addition with the help of the constantly optimised capital market the Company will return to the

investors with excel lent performance and take the in i t iat ive to assume soc ia l respons ib i l i ty to be a

Supervisory Board high-quality listed companies.boards of directors

In addition in order to implement the Shanghai Stock Exchange's initiative of "improving quality increasing efficiency

and focusing on returns" for companies listed on the Science and Technology Board iRay Technology has integrated

the concept of " investor-oriented" into the company's development and continues to optimize its operations stan-

Audit committee Nomination Remuneration and Strategy Independent dardizes its governance and actively share the achievements of enterprise development with shareholders. During committee appraisal committee committee Director Committee the Reporting Period we successfully implemented and completed the share repurchase program during which the

company's stock price steadily increased. We also distributed a total cash dividend of RMB 210805251.40. The com-

pound annual growth rate of dividends over the past three years was 70.46% with the annual cash dividend amount

The Company puts a high value on information disclosure. We strictly follow the Regulation on Information Disclo-

accounting for more than 30% of the company's net profit each year.sure of Listed Companies the Listing Rules of Shanghai Stock Exchange and relevant laws and regulations. We

have formulated the Information Disclosure Management System and other relevant rules to carry out the Compa-

ny’ s information disclosure in an orderly manner.Advancing Risk Management

Building internal control is not only a regulatory requirement for l isted companies but also a foundation for the

Improving investor communication long-term robust development of enterprises. The Company has formulated corporate governance policy documents

such as the Internal Audit Policy in accordance with laws and regulations and normative documents such as the Basic

We are concerned about investor demands and maintains close interaction with investors we formulate and strict- Standard for Enterprise Internal Control and the Guidelines for Evaluation of Enterprise Internal Control and strictly

ly enforces relevant rules such as the Investor Relations Management System . We actively organise investor activi- complies with them in actual operation.ties issue announcements and respond to questions raised by investors on the Shanghai Stock Exchange E Inter-

We make continuous improvements in the Company’ s internal audit and refine the risk control mechanism account-

active Platform. We carefully l isten to investors’ suggestions and ensure that all investors have equal access to

ability system risk prevention and control system internal contract management system and relevant management

information disclosed by the Company. The Company places great emphasis on safeguarding investor rights and standards processes and policies to further standardise our operations. During the Reporting Period we carried out

closely monitors investor concerns evaluation matters improvement suggestions etc. strengthening investor rela- internal audit over matters like expense reimbursement key suppliers import and information security and improved

tions management. our management in a targeted manner to further improve the management level of the Company.19 iRay Technology ESG Report 2023 20

Complying with Business Ethics Guarding Business Secrets

We regard business secrets as an important indicator of corporates’ core competitiveness and we have formulat-

iRay Technology regards integrity and honesty as the Business Integral

ethics operation ed the Information Confidentiality Management Standards to regulate and manage the scope classified level and foundation of a company. During the Reporting Period

iRay Technology formulated and publ ished the f i rst protection measures of confidential information. Varying from the multi-level confidentiality in office R&D produc-

R e s p o n s i b l e B u s i n e s s A l l i a n c e ( R B A ) M a n a g e m e n t tion and other places the Company authorises different levels of access control. It defines the scope of activities

Manual which requires the Company and its partners No for employees and visitors to prevent leaks. During the Reporting Period the Company continued the tradition of Privacy

to practice the highest ethical standards and specifies protecticn illegitimate trade secret protection training by conducting training for all employees. The training covers the scope of trade

gains

that the management representatives should super- secrets confidentiality requirements daily considerations typical cases and related risks and responsibil ities. At

vise the effective implementation of the relevant man- iRay Technologys the same time we implemented a series of management init iatives for our employees and partners to str ict ly

RBA Management

a g e m e n t s y s t e m . W e h a v e f o r m e d a n e f f i c i e n t Manal guard trade secrets.top-down closed-loop management system to drive Ethical Standards

integrity and prioritise the protection of IP and trade Confidential

ity of identity Information

secrets. The purpose is to effectively prevent data and and non disclosure

privacy leakage through a perfect information security retaliation

policy

management mechanism and safeguard the stable Employees

corporate operation. Fair trade

advertising Intellectual

and property

competition protection

In-service Resigned and ret ired

employees employees employees

C l a r i f y t h e e m p l o y e e s R e q u i r e t h e m t o s i g n t h e

Adhering to Integrity Operation responsibil ities for protect- N o t i c e o f D o s a n d D o n t s

i n g b u s i n e s s s e c r e t s i n a l l After Res ignat ion andre-

The Company strictly comply with relevant laws and regulations including but not limited to the Company Law of labour contracts and em- t u r n r e l e v a n t d o c u m e n t s

the People 's Republic of China the Anti-Unfair Competition Law of the People 's Republic of China the Anti-Mo-

p l o y m e n t c o n t r a c t s a n d andinform them of theirre-

nopoly Law of the People 's Republic of China and the Interim Provisions on Prohibiting Commercial Bribery to

employment contracts sponsibi l i t ies andduration

clarify the company's code of ethical business conduct.for confidentiality

R e q u i r e a l l e m p l o y e e s t o

Under a well-structured management framework and effective management mechanism the Company has widely

sign the Business Confiden-

established and implemented anti-graft and anti-corruption policies on employees and suppliers and prohibited

t i a l i t y a n d W o r k P r o d u c t

any form of bribery embezzlement extortion and misappropriation of public funds. We adhere to the highest

standards of integrity in all our business interactions and implement monitoring and reinforcement procedures to Agreement which requires

ensure compliance with honest operation requirements ( including the commitment provision offering or accep- employees toperform their

tance of any bribe). We also provide internal appeal channel for employees found to be in violation of integrity confidentiality responsibil i-

requirements. We also conduct regular compliance training for our employees management and directors to ties and obligations

strengthen awareness of business ethics and endeavour to ensure that our internal personnel are fully aware of

and comply with the relevant policies and regulations regarding honest operation. During the Reporting Period

we conducted business ethics and compliance training sessions covering 100% of full-time employees.For external parties we endeavour to ensure an ethical and honest business environment. The Company has

Business partners

signed Confidentiality Agreements with our suppliers and customers to clearly stipulating the standards involving

bribery insider trading conflict of interest and other aspects and to strictly implement the anti-bribery and an-

ti-corruption concept. The Company also requires suppliers to sign the Letter of Commitment on Integrity in which Set up a Confidentiality Agreement signing process before conducting

they promise not to provide bribery of any form i l legitimate gains etc. to related persons and stakeholders. In business secret protection

addition the Company sets up uninterrupted complaint channels for interested parties like email legal.dept@iray-

group.com and encourages persons concerned to report any noncompl iance they discover and ident ify to Sign purchase agreements with supplierswhich contain clear stipula-

combat corruption. t i o n s o n i s s u e s s u c h a s o w n e r s h i p o f r i g h t e s l i c e n s i n g s c o p e a n d

infringement liability

To protect the legitimate rights and interests of whistle-blowers as well as to create a corporate culture of integ-

rity the Company has incorporated " Identity Protection and No Retal iation" into its business ethics pol icy. By

allowing anonymous report keeping confidential the whistle-blower's identity and other information and estab-

lishing anti-retaliation measures we aim to protect the rights and interests of whistle-blowers and ensure that

they can fully fulfi l their right to monitor. During the Reporting Period the Company had no violation of business

ethics.21 iRay Technology ESG Report 2023 22

? Protecting Intellectual Property ? Ensuring Information Security

We strictly comply with the laws and regulations on information security and privacy protection in the country or

region where we operate including but not limited to the Cybersecurity Law of the People 's Republic of China the

Administrative Measures for the Graded Protection of Information Security etc. To ensure network and informa-

tion security the Company has promoted the three major initiatives: technological empowerment knowledge dis-

semination and institutional safeguards to comprehensively conduct information encryption anti-virus and data

backup.The Company util ises a professional data leak prevention system and transparent encryption technology at the

driver level to secure data encryption and ensure the security of data use at source. We install computer security

software in internal computers for data encryption and virus prevention to ensure that only authorised personnel

can view and edit classified documents. The Company formulated the Rules on Data Backup Management in the

light of the actual situation educated the staff about data backup and clarified the management process of data

backup and recovery. Additionally the Company provides its employees with enterprise email accounts that have

built-in antivirus and email interception features and periodically sends out protective reminders on information

leaks fraud and other security issues via email.Beyond that we have formulated the IT Business Continuity Management Specification . Other measures include

appointing system administrators and assembling an emergency response team and a disaster recovery team to

ensure that dedicated personnel are in place for predicting and monitoring major information security events or

The Company strictly abides by laws and regulations such as the Patent Law of the People 's Republic of China the

security crises that may affect the Company’ s network and information systems as well as to ensure that the

Trademark Law of the People 's Republic of China and the Enterprise intel lectual property management and

Company’ s network and information systems are able to recover promptly upon information security events.takes multiple measures to protect intellectual property effectively and to maintain the competitive advantage of

During the Reporting Period the Company backed up the data in servers and various R&D and administrative sys-

independent innovation. During the Reporting Period we were recognised as "National Intellectual Property Ad-

tems and through the integration of these systems we have realized real-time data exchange and effectively

vantageous Enterprise" by the State Intellectual Property Administration (CNIPA) which ful ly demonstrated our

avoided the risk of mutual attacks and data leakage of systems so as to ful ly safeguard information and data

high-quality IP management and product innovation capability.security.iRay Technology has established a sound system of intellectual property rights management and formulated the

Intellectual Property Manual which regulate the management of the Company's intellectual property such as pat-

ents software copyrights trademarks integrated circuit layouts etc. Also the Company has established an intel-

lectual property management department and set up intellectual property l iaison officers in each relevant de-

partment to facilitate the promotion and communication of intellectual property management. Besides iRay Tech-

nology has formulated and fol lowed the Intel lectual Property Infringement Risk Management System to stan-

dardise the Company 's mechanism for responding to intellectual property infringement or being infringed upon

thus controll ing such risk. During the Reporting Period we formulated the Patent Infringement Risk Registration

Policy to standardise the classified patent management and further reduce the risk of patent infringement.To prevent the occurrence of intellectual property infringement the Company monitors the changes in intellectual

property rights in the industry. We keep up with the intellectual property dynamics of industry peers by using intel-

lectual property database. For the technical routes that the Company 's R&D centre focuses on the Company

monitors them on a multi-frequency basis to avoid the risk of infringement or possible infringement during the R&D

process. Once the clue of patent infringement is detected and verified the Company sets up an emergency team

to research and collect evidence of damages caused properly safeguarding its legitimate rights and interests by

legal means. In the event of a patent-related dispute or alleged patent infringement the Company carries out risk

prediction grades the incident and takes action accordingly. In addition we require suppliers to sign the Letter of

Commitment to No-Infringement in Products in which they undertake to supply products without any infringement

of the IP of third-party authorised licensor. During the Reporting Period the Company had no infringement of IP.To fully integrate the creation and protection of IP into the daily operation of the Company we regularly carried

out relevant training to strengthen the building of IP culture. In addition to providing IP-related training to new em-

ployees in batches we have established a four-tier IP training system which covers training for all employees R&D

training management training and intellectual property rights (IPR) training to help employees acquire the skil ls

required for their job functions and to effectively implement IP management.23 iRay Technology ESG Report 2023 24

Improving ESG governance

iRay Technology sticks to the vision of " iRay X-ray Technology Everywhere" and continues integrating ESG into its operations. The Company

constantly optimises and improves the company's sustainable development management system and actively promotes the in-depth inte-

gration of ESG concepts with the company's strategy and business operations. The Company continues to focus on ESG issues such as prod-

uct quality environmental protection and employee health and the progress of related work to achieve long-term value creation.We firmly believe that continuous improvement of ESG management mechanism is crucial to the implementation of the Company's sustain-

able development strategy from top to bottom. We have set up a cross-departmental ESG working group to manage and execute daily

ESG-related affairs. The ESG working group led by the Board Office consisting of key personnel from various departments and core per-

sonnel of our subsidiaries is responsible for the management and execution of related matters in order to fully implement ESG manage-

ment initiatives.Sticking to the principle that internal policies must be directive systematic coordinated and advanced iRay Technology clearly stipulates

its social responsibil ity policy environmental policy occupational health and safety policy business ethics policy as well as the specific

requirements and measures under each policy in the RBA Management Handbook and requires suppliers and other partners to jointly

comply with the relevant management requirements hoping to collaborate with all stakeholders in the value chain to jointly achieve respon-

sible corporate governance and operation.25 iRay Technology ESG Report 2023 26

Stakeholder Communication Assessing Material Issues

The Company attaches importance to the communication with various stakeholders including government depart- In order to identify the key areas of focus for iRay Technology’ s ESG work the Company regularly appoints pro-

ments and regulators shareholders and investors employees customers suppliers partners and communities. The fessional organisations to assess material issues. The Company conducts material ESG issues assessment through

Company values communication and exchange with stakeholders through various channels to understand their de- industry analysis and surveys on internal and external stakeholders to understand their expectations on the Com-

mands and expectations in ESG areas provide t imely feedback and formulate ESG management strategies pany 's ESG performance. The Company combines the survey results with its business operations identified and

based on the communication results. prioritised important ESG issues for its operations and sustainable development and uses them as an important

reference for continuing to carry out ESG management and disclosing ESG information.Stakeholders Issues of concern Communication and response

The materiality assessment is carried out in the following steps:

Compliance management

Daily management Step 1: Identify material ESG issues Step 2: Analyse the importance of the issues

Product and technology innovation

Government Exchanges on meetings

Product quality and safety Tak ing into account expert op in ions actua l Through questionnaires on internal and external importance to

departments and Supervision and inspection

Anti-corruption and business ethics business operations and industry development stakeholders and internal interviews the Company assessed the

regulators Government projects

Green operation characteristics the Company identified 20 ESG importance of key ESG issues from two dimensions - " impor-

Advice and suggestions

Better energy efficiency issues in three categories (governance social tance to iRay Technology" and " importance to stakeholders"

and environmental) including: and drew a materiality assessment matrix based on the actual

Compliance management survey results to determine the importance of the Companys

Return to shareholders Shareholder meeting ESG issues.Business ethics

Corporate governance Information disclosure

Shareholders and

Investor relations Investor meeting Step 3: Verify the assessment results

investors Compliance management

Product innovation and intellectual property News released on the official website and other

To secure accurate and adequate assessment results the Com-

protection channels Corporate governance

Anti-corruption and business ethics panys management and ESG directors reviewed and recon-

Intellectual property protection firmed the results. During the Reporting Period as there were no

Workplace safety and occupational health significant changes in the Companys business operation model

Occupational health and safety

management Information security and business confidentiality we reviewed the ESG issues and the results of the materiality

Talent attraction and retention

Protection mechanism of employee rights and interests assessment and concluded that the results were still applicable

Employee rights protection Product quality and safety

Employees Salary and performance management to the Company and the final results are as follows:

Diversity and equal opportunities

Employee promotion mechanism

Employee training and development R&D innovation

Employee training program High

Welfare and compensation

Employee welfare activities Customer service management

Supply chain management

Product quality and safety Professional quality and customer service team Product quality and safety

R&D

Customer service management ComplianceCustomer satisfaction survey Employee training and development innovation

management

R&D innovation system Product innovation and R&D Corporate governance Intellectual property

Customers Compliance management Green product design Talent attraction and retention Business ethics protection

Green products and operations Business confidentiality and information security Talent attraction Information security

Information security and trade secret protection Occupational health and safetymanagement and retention and business confidentiality

Complaint feedback and handling mechanism Customer complaint handling Occupational health and safety

Employee diversity and equal opportunities Better energy efficiency

Customer service management

Emissions Employee rights protection

Employee rights protection Employee training management Supply chain management

Compliance management Commitment and Partnership agreement and development Resource recycling

win-win development Supply chain management and communication Inclusive medical care

Suppliers and Inclusive medical careSupply chain management Supplier meetings and training Response to

partners Anti-corruption and business ethics Reporting channels Community and public welfare

climate change Employee diversity and

equal opportunities

Resource recycling Green supply chain management

Emissions management

Resource recycling Community and public welfare

Public welfare actions

Community-based charity and development

Medical aid assistance

Inclusive medical care Better energy efficiency

Low

Community

Business presence in developing countries Low Importance to iRay Technology High

Emissions management

Green operation and management Response to climate change Governance Social Environmental

ESG materiality matrix of iRay Technology

Importance to Stakeholders

Governance Social Environment27 iRay Technology ESG Report 2023 28

ESG Topics in 2023 United Nations’ Sustainable Development

Goals Response

SDGs Response SDGs Response

Topic：Improving Medical Accessibility for Health and

Well-being Chapter 2: Employee Care and

C h a p t e r 1 : O p e r a t i o n a l E x c e l -

Talent Development

l e n c e a n d I n n o v a t i o n - d r i v e n

Chapter 5 : Caring for Society

With the global economic growth and the advancement of the urban development process in devel- Strategy

and Shouldering Responsibility

oping countries accelerating the construction of a graded diagnosis and treatment system and the

promotion of inclusive medical care had become a broad consensus in the global public domain. As a

leading company in the detector industry in China and around the world iRay Technology always

adhere to the corporate mission of "Improving Lives with Innovative Imaging Technologies". It is com-

mitted to promoting the development of the DR market and the sinking of DR system to primary Chapter 1: Operational Excellence Chapter 2 : Employee Care and

healthcare inst itut ions thus improving the construction of healthcare infrastructure and better and Innovation-driven Strategy Talent Development

improve the health and well-being of patients around the world. Chapter 2 : Employee Care and Chapter 4: Responsible Procure-

Talent Development ment and Resilient Management

We have cooperated extensively with many domestic medical industry customers providing medical Chapter 5: Caring for Society and Chapter 5: Caring for Society and

services to the countryside promoting the steady development of the domestic basic medical and Shouldering Responsibility Shouldering Responsibility

health service system and improving the balance of resource allocation and service. Relying on the

strong technical and product support of iRay Technology several of our customers have won the

bidding of the provincial subsidized primary healthcare institutions' medical equipment procurement

project in Hunan Province which has effectively enhanced the accessibil ity of local healthcare ser- Chapter 2 : Employee Care and

vices as well as the level of comprehensive medical care. Talent Development

Chapter 5: Caring for Society and C h a p t e r 3 : L o w C a r b o n a n d

We are also concerned about the improvement of medical accessibility in developing countries. As at Shouldering Responsibility Green Development

the end of the Reporting Period 70% of our top ten customers are from developing countries. The Chapter 5: Caring for Society and

company 's high-quality products have been sold to developing countries including Azerbaijan Na- Shouldering Responsibility

mibia and Jamaica etc. We have also established overseas customer service platforms in India

Mexico and other places to provide efficient after-sales service practising the corporate vision of

" iRay X-ray Technology Everywhere" by actions. During the Reporting Period our Mars 1417V wireless

static flat panel detector and other products were sold to more than 300 hospitals in India effec- Chapter 1: Operational Excellence

tively assisting in the construction of the local end-to-end inclusive healthcare system by virtue of and Innovation-driven Strategy

their clear images stable and reliable wireless performance and long battery life. Chapter 2 : Employee Care and C h a p t e r 3 : L o w C a r b o n a n d

Talent Development Green Development

Chapter 4: Responsible Procure-

ment and Resilient Management

C h a p t e r 3 : L o w C a r b o n a n d

C h a p t e r 3 : L o w C a r b o n a n d

Green Development

Green Development

Chapter 1: Operational Excellence

Chapter 2 : Employee Care and and Innovation-driven Strategy

Talent Development Chapter 4: Responsible Procure-

Chapter 4: Responsible Procure- ment and Resilient Management

medical service in Azerbaijan and Namibia ment and Resilient Management Chapter 5: Caring for Society and

Shouldering Responsibility29 iRay Technology ESG Report 2023 30

01

Operational Excellence

and Innovation-driven

Strategy

iRay Technology firmly adheres to the value of " Innovation Excel-

lence Collaboration and Win-Win" . Taking industry-leading technol-

ogy and innovation excellence as an inexhaustible power and the

constantly evolving product lifecycle quality management system as

the cornerstone we are committed to providing customers with

safer more advanced X-ray technology and better services and

better serving human health.Comprehensive Quality Management

Boosting R&D Innovation

Providing Quality Services

SDGs31 iRay Technology ESG Report 2023 32

Comprehensive Quality Management Whole-Process Quality Management

The Company follows the Product Quality Law of the People 's Republic of China the Norms on the Quality Man- We have established a whole-process quality management structure covering product demand design and de-

agement for Medical Devices and other laws and regulations and establishes a quality management system in velopment production and manufacturing product sales after sales service and post marketing surveillance. We

compliance with ISO 13485:2016 medical devices - quality management systems - requirements for regulatory pur- have compiled and implemented the Quality Manual which specifies the quality policy quality objectives quality

poses. The Company's quality management system has passed the quality management system certification in the management system and other action guides and use these to guide the Company in establishing implementing

EU US Canada Australia Japan and South Korea complied with local regulations and fully served the Company's and maintaining the quality management system ensuring that the quality management process is standardised

strategic need for global expansion. In addition iRay Technology and its wholly-owned subsidiaries iRay Taicang and refined and safeguarding product safety and stabil ity. Meanwhile we have integrated the domestic and

iRay Haining and High Voltage Technology have passed the third-party audit on EN ISO13485:2016 medical devices international regulations and standards into the quality management system and make timely adjustments to

- quality management systems - requirements for regulatory purposes. During the Reporting Period we launched reflect regulatory developments.the ISO9001 "Quality Management System" certification programme for our non-medical products to continuously

monitor and assess the operation of our internal quality management system and gradually implement systematic

management initiatives. As of 31 December 2023 the coverage rate of quality-related certifications at our manu-

facturing or operation premises was 100%. Quality Policy

Customer satisfaction technical advancement execution oflaws and

regulat ions process control and accurate and t imely del ivery of

first-class products

Quality Objectives

Develop measurable annual quality objectives in line with the quality policy

Break down objectives at everylaver involved for detailed implementation

Quality Management

System

iRay Technology and its wholly-owned subsidiaries iRay Taicang

iRay Haining and High Voltage Technology ISO 13485:2016 medical Plan a quality management system to achieve quality objectives

devices - quality management systems certificate Ensure that the quality management system is continuously refined to

reflect relevant changes and remains integral in this process

Furthermore products of iRay Technology have also been widely recognised. As of 31 December 2023 11 of our

products have been certified by the National Medical Products Administration (NMPA) of China 20 products have

been certified by the US Food and Drug Administration for medical device (FDA510K) registration and 19 products

have been certified by the Conformite Europeenne (CE) certification. The Quality Policy Objectives and Management System33 iRay Technology ESG Report 2023 34

In addition we have established a clear unambiguous and complete organisational structure for quality manage-

ment which clearly regulates the responsibilities and requirements of each department and position to ensure the

effective operation of our internal quality management system. Product

Concept

Top Management Top management for quality management

Life-

General Manager Oversee the establishment and implementation ofthe management system Productcycle

Develo

Manage

pment

ment Well-

established

Quality

Manageme

nt system

Establ i sh a qual i ty management system and effect ive ly implement i t as

planned Continu Design

al &

Report to the top management on the performance of the quality system in

Improv Manufa

terms of the quality pol icy quality objectives review results data analysis ement cture

Management

corrective and preventive measures and customer complaints and propose

Representatives

suggestions for revision based on the system operation Quality Management System

Enhance employees understanding and awareness of quality regulations and

We also closely track the development trend of digitalisation and use digital means in the production and opera-

customer requirements through internal training publicitycommunication ete.tion to accelerate digital transformation. We integrated many management systems such as Manufacturing Execu-

Exchange opinions with the wider industry on quality management system tion System (MES) Product Lifecycle Management (PLM) Systems Applications and Products in data processing

(SAP) Enterprise Resource Planning (ERP) and Office Automation (OA) System with intell igent facilities and equip-

ment in an effort to comprehensively improve the level of automation and intell igent management of production

and operation so as to improve the management quality and efficiency over factors like quality safety and cost

and ultimately drive business growth. During the Reporting Period we have deeply integrated and synchronously

launched information management software such as MES PLM SAP OA etc. which greatly reduces the need for

manual operation and improves work efficiency. At the same time in the face of complex business needs the inte-

grated system has higher flexibility data accuracy and security realizing the integration of business and financial

management the whole process management of product l ifecycle supply chain collaborative management and

Carry out work as required by the quality management system. support infor- digital process management.Functional mation intrastructure and working environment including providing adequate

Meanwhile we deployed various types of equipment to suit the expansion of our business scale so as to continu-

Departments and necessary manpower financial support information infrastructure and ously promote the development of quality management processes towards automation and refinement. In addi-

working environment. tion our subsidiary High Voltage Technology deployed high-voltage generator aging and reliability automatic test

fixtures which improved efficiency by controll ing multiple transmitters simultaneously and carried out automatic

Quality Management System exposure tests to reduce the difficulty of manual operation and effectively achieve accurate feedback of test

results which greatly enhanced the effectiveness of product quality control.On the basis of continuous improvement of our quality management system and policy documents the Company In addition the Company has developed the Control Procedure of Nonconforming Products to standardise the dis-

incorporates product concept product development design and manufacturing and life cycle management into posal process of nonconforming products found in production process and after delivery. For the nonconforming

quality management ensuring comprehensive and effective quality management. We strictly maintain the safety f inished products or self-made semi-finished products during production the Company wil l re-manufacture or

of products from both R&D and production aspects and strictly controls the quality of products to ensure that its scrap them based on the actual situation. When the delivered products are found to be nonconforming the Com-

pany will immediately collect product information analyse causes and assess risks to see how serious the injury or

products comply with such standards as electrical safety electromagnetic compatibil ity (EMC) sound output for

potential injury caused by the nonconforming products to patients and users is. Then the Company issues advisory

the sake of safety and reliabil ity. We have established and implemented the iRay Product Development Control

notices to the regulatory authorities and recalls those products if necessary. During the Reporting Period we opti-

Procedures for product design and development based on which we plan and control the design and develop-

mised the e-flow of non-conformity control eliminated the record requirements for cause analysis improvement

ment of our products to ensure that the review verification validation as well as the design transfer activities at measures and tracking results in the non-conformity process and revised the triggering rules for Corrective Ac-

each stage comply with our internal quality specifications and meet the requirements for production. During the tions and Preventive Actions (CAPAs) to further strengthen the assessment and control of non-conformities with

Reporting Period we added new definitions of standards for preventive testing and factory acceptance testing at cumulative failure rate decreasing year by year. Since its establishment the Company reported no product recall

the product design transfer stage to provide adequate and effective quality control over pre-market products. because of quality issues.35 iRay Technology ESG Report 2023 36

Building a Culture of Quality Boosting R&D Innovation

To ensure that our quality policy is accurately and effectively communicated to every employee we regularly hold iRay Technology firmly believes that independent innovation is the core competitiveness of the Company in the

diversified internal and external quality-related training and seminars to promote the effective participation of all global market. We highly value the R&D management and the talent development keep promoting the innovation

employees in quality management through publicity training assessment and internal quality audits etc. so as to of product in multi-domains by enriching and expanding the core X-Ray technology matrix. We are also devoted to

ensure the stability and continuous improvement of product quality. providing the environmentally and socially friendly high-quality product and completed imaging system solutions

to industrial customers.During the Reporting Period we conducted a total of 42 quality related training sessions on various topics like the

promotion of laws and regulations internal policies and procedures quality awareness and tools training covering

100% of our employees.

Optimising R&D Management

During the Reporting Period we held regular quality seminars in Shanghai headquarters iRay Haining and iRay Ta-

icang and organised case sharing and on-site analysis training for R&D production quality and engineering staff

Comprehensive R&D management process lays the foundation for product stabil ity and reliabil ity. The Company

so as to enable employees to understand the quality control requirements of design and development product

has established a complete process for the design of product technical schemes with multiple control nodes and

manufacturing etc. and to drive the strict top-down implementation of the Company’ s quality culture and quality

developed a risk identification and management system to improve compliance reliabil ity and predictabil ity of

supervision requirements.R&D projects. During the product demand review at the initial stage the Company will collect and identify informa-

tion related to product demands to assess and ensure product safety and compliance including functions perfor-

mance avai labi l ity safety requirements applicable domestic and foreign laws regulations and standards of

products and requirements to avoid the use of hazardous substances. Meanwhile the Company set a strict review

system. We wil l hold a technical review meeting for each design scheme where senior engineers with extensive

design experience are invited to ensure the safety and completeness of the design scheme.Product Design and Design and Product Design and

Design and

demand review development development initiation development

development

Shanghai Headquarter iRay Haining and iRay Taicang held quality seminars for 2023 planning input output

Product design and development process

Design and Design Design and Mass Post-market

development conversion development production management

verification confirmation control37 iRay Technology ESG Report 2023 38

Nurturing Innovative Team Mastering Core Technology

We are dedicated to tackl ing the technological diff icult ies in the R&D of world-leading digital X-ray detector The Company 's key product digital X-ray detector has a wide range of applications but the demand for digital

high-voltage generator X-ray tubes and integrated X-ray sources and so on. By assembling a high-quality R&D X-ray detectors in different scenes varies greatly which needs a variety of technologies. After more than ten

team with a global vision and continuously increasing investment in R&D we manage to constantly invent and inno- years of development with excellent R&D and innovation capabilities we have mastered sensor design and pro-

vate advanced technologies in this field. To give more momentum to technical R&D staff and encourage them to cess technology CT detector technology sc int i l lat ion crystal material and packaging technology ROIC and

innovate more actively we have formulated a detailed IP reward mechanism: cash incentives are provided to em- low-noise electronic technology X-ray intel l igent detection and acquisit ion technology and detector physics

ployees applying for or obtaining IP and awards are set up to recognise inventors who have made significant con- research and medical image algorithm. The Company has become one of the few digital X-ray detector manufac-

tributions. During the Reporting Period iRay Technology had about 110 employees contributing to IP invention. turers in the world that masters all the main core technologies.Those who involved in the paper writing as the first author or awarded any high-value patent prize were granted

the IP Contribution Award.We are the first in China and one of the few in the world that simultane-

With high-quality R&D team and complete innovation incentives to bring together the solid innovation force the ously master the four sensor technologies of Amorphous si l icon (a-Si)

Company overcame the difficulties and has been widely recognised by the outside with excellent professional Detector Design and IGZO flexible substrate and CMOS with stable mass production capac-

strength. Process Technology ity and batch delivery.Signif icant resources have been invested in relevant R&D and three

major technical bottlenecks have been resolved namely high electronic

Case Patented iAEC method and system won the honour of "Excellent Project of Patent CT Detector Technology noise level requirements high detector module performance require-

Industrialisation" in Pudong New Area ments and high data transmission requirements.During the Reporting Period with the patented Intell igent Automatic Exposure Control ( iAEC) method and We own customised caesium iodide vacuum coating equipment and fully

system the Company was awarded Excellent Project of Patent Industrialisation in Pudong New Area. The au- automatic u l tra-narrow frame packaging technology real is ing the

tomatic exposure control method can achieve precise control of exposure irradiation field and exposure Scintillation Crystal Material independent production of caesium iodide scintil lator films and carries

dose. It features simple structure low cost short imaging cycle low operation complexity etc. and therefore and Packaging Technology out numerous improvements in material science and fi lm processes for

has high innovation and industrialisation value. the enhancement of clinical image performance and durability.We have successfully developed analogue front-end +AD chip for digi-

t a l X - r a y d e t e c t o r l o w - n o i s e e l e c t r o n i c h a r d w a r e p l a t f o r m a n d

As of 31 December 2023 the Company had 514 R&D personnel an increase of 25.98% accounting for 30.95% of all ROIC and Low-Noise Electronic high-performance embedded software and designed sensor driver cir-

employees which providing a strong innovation drive and guarantee of R&D strength. Our investment in R&D Technology cuit high-speed and high-reliabil ity data cross-interface and embed-

reached RMB 262.684 million an increase of 10.02% compare to that in 2022 accounting for 14.09% of our operating ded hardware platform which real ised the capture and high-speed

income and we had obtained patent or authorisation for 76 new IPs of various kind (based on the issuance date of transmission of high-quality detector images and met the demand for

high-quality terminal images

the certificates) of which 30 were inventions.We have developed three X-ray intel l igent detect ion technologies

including Automatic Exposure Detection (AED) Automatic Exposure Con-

The Company's intellectual property as of December 31 2023

trol (AEC) and Automatic Brightness Stabiliser (ABS). Through the wired

Type of intellectual property Newly added in 2023 Cumulative X-ray Intelligent Detection and wireless f lat panel detector technology with built-in AEC module

and Imaging Technology we have real ised the automatic exposure control of the whole X-ray

Invention patent 30 155 machine which meet the demand of the old X-ray system upgrading.We also adopt the intell igent dosage detection technology to replace

Utility model patent 33 190 the traditional ionisation chamber and improve the dosage control pre-

cision thus providing more precise dose control solution.Industrial design patent 5 57

Through the establ ishment of the detector physics research depart-

Software copyright 8 39 ment and cooperation with internationally renowned universit ies and

research institutes we have studied the physics of optical sensors and

Trademark 0 0 Detector Physics Research developed related algorithms to achieve efficient high-definition image

and Algorithm Development correction and virtual grating functions to improve image quality. We

Other 0 34 have also successful ly developed image processing algor ithms and

image workstat ions based on embedded systems which have been

Total 76 475 widely used in the new core component products.39 iRay Technology ESG Report 2023 40

During the Reporting Period to further improve the product and business layout and enhance the Company’ s com-

petitiveness we further strengthened the strategic layout in integrated X-ray solutions and a range of new core Case Solid-state Silicon Photomultiplier (SiPM) module

components such as high-voltage generators high-voltage tubes and integrated X-ray sources. These inputs

enable us to drive technological research and form certain technological base. Therefore we have mastered key During the Reporting Period leveraging its vertical integration capabilities in optical sensors the Company quick-

technologies such as the high-voltage insulation technology high-voltage inverter power topology technology ly entered the field of new detector technologies and successfully developed a thermoelectric-cooled sol-

special auxi l iary power technology barium tungsten cathode technology l iquid metal bearing technology and id-state silicon photodetector module (TE-cooled SiPM) for use in in vitro diagnostic instruments.flying focal spot technology

The TE-cooled SiPM module product features high sensitivity wide dynamic detection range strong stability high

Developed industry-leading high-voltage tank outstanding for relatively small size and resistance to point noise interference and flexible readout which effectively improve detection accuracy and

High-Voltage l ight weight and provided a creative solution to the insulation of high-voltage transform- response speed.Insulation Tech-

nology ers filament transformers voltage doubling circuits and detection circuits

Provide users with more spatial application possibilities enabling more hospitals to utilise

smaller spatial layouts for equipment

Based on years of technical accumulation we have fully mastered the advanced inverter Case Dynamic Wireless V5 Series Detectors

High-Voltage power supply topology technology and acquired power switching device resources in the

Inverter Power

Topology field of power electronics

Technology Able to facilitate the rapid validation and implementation of customised design solutions During the Reporting Period the Company based on industry user demands adopted multiple self-developed

based on different customer requirements intelligent technologies and launched an upgraded version of the wireless dynamic/static flat panel detector V5

series products specifically designed for digital radiography (DR) systems and DR upgrade solutions.Through independent R&D we master key auxil iary power supply technologies such as

l iquid metal bearing drive control power supply breaking the monopoly of multinational The V5 series products built upon the V series incorporate wireless dynamic technology enabling high frame

Special Auxiliary companies rate dynamic image acquisition in wireless mode thus expanding the scope of clinical applications. With the sup-

Power Technology Completed the mature technology implementation verif ication with the trial-produced port of intelligent functions this series of products improves clinical examination efficiency enhances detection

prototype and about to start mass production. In the future it wi l l be widely appl ied accuracy and reduces dependence on operators. Additionally the V5 series products introduce several practi-

through integration

cal features such as voice control screen displaynear-field communication (NFC) and wireless charging technol-

ogies. These features allow devices to pair with each other in the absence of a local area network signal thus

Barium Tungsten Had successfully introduced a barium tungsten cathode preparation team with mature expanding the range of usage scenarios.Cathode Tech- experience and carried out the work of small-size high-current-density cathode and

nology solved neck-stucking problem of the core technology.Case

Through continuous investment we have realized the R&D capability of the whole process High-end Digital Subtraction Angiography (DSA) CMOS flat panel detector

Liquid Metal from theoretical design to physical test in which the key core technologies such as hydro-

Bearing dynamic calculation bearing texture laser etching dynamic balance test etc. can be

Technology During the Reporting Period the Company made a breakthrough in the core components of the DSA and independently owned. launched the CMOS flat panel detectors - Pluto 1212X and Pluto 1216X - specifically designed for high-end DSAs.These detectors are compatible with interventions and examinations of various body parts such as the heart

head abdomen and lower limbs. They are suitable for multi-departmental use and have a wide range of clinical

Mastered a whole set of electron beam simulation methods after many years in design-

applications.Flying Focal Spot ing the CT tube electron optical capable of realizing the trajectory simulation of the elec-

Technology tron beam in the complex electromagnetic environment with a whole set of design and

realization methods. These two DSA flat panel detectors offer outstanding performance including high resolution high acquisition

speed low dose low image persistence and strong gray-scale resolution. They match or even surpass the per-

formance of similar products from overseas facil itating the rapid deployment of high-end DSAs in primary

Innovative Leading-edge Products healthcare institutions and actively promoting industry development.Relying on our strong core technology support we launched numerous innovative products during the Reporting

Period which further diversified our product offerings and effectively enhanced our business layout.Case Single-exposure dual-energy X-ray detector

Case Residual Gas Analysers RGA

During the Reporting Period the Company introduced the dual-energy X-ray detector Mercu 0810DE for dental

During the Reporting Period the Company launched the first high sensitivity QRGA OIS series of residual gas cone-beam computed tomography (CBCT) and panoramic imaging utilizing patented dual-energy technology.analysers with fully independent intellectual property rights which are mainly applied to the detection of ionised This detector reduces metal artifacts in images allowing for the simultaneous display of morphological changes

gas molecules in the production process of semiconductor manufacturing and flat panel manufacturing. and soft tissue status. It provides high-precision images for clinical physicians to develop treatment plans further

improving the success rate of surgeries and treatments.QRGA OIS series residual gas analyser has eight advantages including stabi l ity f lexibi l ity convenience

real-time accuracy high efficiency intell igence sensitivity and reliabil ity friendly interface etc. which can Mercu 0810DE not only effectively eliminates metal artifacts in images but also features high frame rates and

realize the real-time monitoring of complex gas components. The integration of this series products into the sensitivity. It rapidly completes high-quality image scans under low radiation doses. It is suitable for almost all

intelligent manufacturing system will strongly assist production and improve production efficiency. dental fields including orthodontics orthognathic surgery and full mouth implantology.41 iRay Technology ESG Report 2023 42

? Sustainable products

Case Security CT detector

iRay Technology has been practising the concept of "Green X-ray" hoping to minimise radiation damage to patients

During the Reporting Period the Company launched its first industrial spiral CT detector which is mainly used in users and the environment through products with lower clinical doses better images and higher efficiency. In addition

areas such as baggage safety check. By establishing a fibre-optic communication link the detector has the func- we incorporate the concept of green innovation into our product development promoting lightweight low-energy

tion of real-time data reconstruction while transmitting massive data which makes it easy for security personnel

package-saving design aiming to make a positive contribution to environmental protection in all aspects of the prod-

to check whether there are any prohibited items. Compared with two-dimensional data the three-dimensional

uct value chain. During the Reporting Period we launched a product design optimisation project to effectively avoid

reconstructed data provided by the detector can provide more details in the image.material wastage by reducing redundant power supply filter capacitors for some detectors replacing chips specific

During the product design and manufacturing considering the numerous sophisticated processes involved in the for a single product and detaching unnecessary power supply chips while maintaining the product quality and safety

manufacturing of the detector modules we form a special team of dedicated engineers to explore the module performance.process research the procedure and the corresponding material and form a set of special production proce-

dure and evaluation standards ensuring the yield of module product can meet the production requirements."Green X-ray" – reducing X-ray radiation dose and protecting human health

To reduce the radiation dose of X-ray to the human body during the imaging pro-

Case Digital Time Delay Integration (DTDI) detector cess the Company develops photon counting technology. Unlike the traditional de-

tector composed of a-Si and scintillator detectors based on photon counting tech-

During the Reporting Period the Company launched the DTDI detector based on the CMOS technology which nology are direct detectors. Photon counting technology accurately counts each

Developing photon

features wider dynamic range faster response and lower cost than the traditional TDI detector using CCD Tech- photon thus improving the contrast and resolution of the image enabling doctors to

counting technology

nology. In the actual application environment the detector can achieve non-stop exposure ultrahigh-speed see fine structures more clearly significantly reducing the radiation dose required

imaging efficient and accurate identification of product defects and capture of quality images with high sig- for imaging and providing more accurate photon data which helps to improve the

nal-to-noise ratio (SNR) even when the detection target is moving fast or the signal is weak. quality of the image and enhance the accuracy and safety of medical diagnosis. and

improve the accuracy and safety of medical diagnosis.In emerging industrial application scenarios l ike electronics and batteries requirements for more accurate

inspection are arising such as ultrahigh-speed online full inspection and 3D inspection of new energy batteries.The DTDI detector can carry out all-round accurate testing of both winding cells and stacking cells to ensure the In the medical check-up some body parts such as the spine and lumbar spine need

performance and safety of the cells during subsequent use. In addition DTDI detectors have promising applica- to be detected in a large area. The traditional detector needs multiple exposures to

tions in food safety. Its multi-stage cascade connection can adapt to the detection size of 230 450 600 900mm complete the detection which leads to an increase in the radiation dose of the

making it applicable to the detection of targets in different environments and increasing the flexibility in appli-

person being tested. The Company designs a large detector Venu1748V to support

cation: it can be applied for the detection of foreign objects in cans bags bottles boxes and other food prod- Venu1748 detector

the imaging of large objects. When detecting long bones and the complete spine it

ucts.can reduce the three exposures required for conventional detection to one greatly

reducing the radiation dose in imaging of the person being tested and patient

examination time.Case Rarely seen in China 25KW high-end C-arm combined radiation source

In terms of dynamic detector design the Company reduces the radiation dose

Reduce radiation

During the Reporting Period the Company successfully developed the rare domestic 25KW high-end C-arm com- required by the detector through improving the scintillator’ s luminous efficiency

dose of dynamic detector

bined radiation source and delivered it in small quantities to leading domestic corporations engaged in the man- panel fill factor and other means to protect the health of patients and operators.ufacturing of surgical robot and navigation system. The special L-shaped architecture of the X-ray source

enables the product to meet the requirement for high-power loading and output while having a more compact

volume than similar products imported which is the excellent solution for the current high-end applications in the Mammo1012P Based on the CMOS sensor technology the Mammo1012P detector can read images

navigation of domestic surgical robots and interventional diagnostics in middle-C surgical orthopaedics. detector at a speed of 8fps and only needs a very low radiation dose.Using our high frame rate pulse high-voltage control technology the high-voltage

High-voltage

Case High-end CT high-voltage generator generator/ X-ray source and X-ray detector can be perfectly synchronised signifi-generator

cantly reducing the X-ray dose required for clinical patient diagnosis.During the Reporting Period iRay Technology had become one of the few companies in the globe which success-

fully developed and started to deliver the high-end CT high-voltage generator with X and Z bidirectional flying

The TDI detector based on CMOS technology can achieve non-stop exposure and

focus control function.. With an output power of 32-80KW the product is compatible with both liquid metal bear-

ultra-high speed imaging and greatly increase the signal-to-noise ratio by multiple

ing and ball bearing high-speed anode rotation drive which is at the forefront of technology in China and rep-

resents a world-leading achievement. It stands out as our technological breakthrough in the development of do- TDI detector overlays of the target signal significantly improving the scanning rate or lowering

mestic high-end CT high-voltage generator and further solidifies the technological and talent foundation for the the radiation dose rate requirements which improves the image quality and miti-

Company’ s medium and long-term growth. gates the radiation dose to the environment.43 iRay Technology ESG Report 2023 44

During the Reporting Period we developed numerous new innovative technologies to further reduce the amount of

radiation or the content of heavy metal elements in our products through precise control and equipment upgrades Providing Quality Services

hoping to better protect patients’ health.At iRay Technology we regard the concept of "win-win with customers" as the foundation of our long-term develop-

iGrid Innovative Technology iAEC Innovative Technology iAED Innovative Technology ment. The Company has established a complete customer service system which provides timely insight into customers’

needs and improves customer satisfaction by continuously launching innovative products. We have formulated and

implemented the "Customer Service Control Process" and made strict regulations on the response time processing

Advanced d ig i ta l image pro- The technology realises low-la- Intell igent automatic exposure time and workflow so as to build a standardised and regulated after-sales service management system and make

cessing technology is adopted tency high-stability wireless con- d e t e c t i o n e n a b l e s l o w - d o s e

every effort to protect the rights and interests of customers.to avo id the " fog " caused by trol and real-time dose detec- high-sensitivity exposure in any-

scattered rays and obtain the t ion. It does not need external where with in the fu l l panel . I t

similar image effect achieved by also ensures that flat panel de- iRay Technology provides customers with a variety of services such as pre-sales support after-sales service profes-power cord and can ensure pre-

u s i n g p h y s i c a l g r i d s w h i c h cise dose control even when ap- tectors and high voltage gener- sional training etc. We adopt a flexible assignment mechanism to provide remote support or on-site service through

r e d u c e t h e d e p e n d e n c e o n plied wirelessly. The restrictions ators can be quick ly instal led resident engineers and other professionals based on the actual situation. In addition we collect customer feedback

physical filter grids and simplify due to the use of traditional ioni- and used without an electrical through a variety of channels including 24/7 service call email and on-site visit and address customer needs in a timely

t h e s t r u c t u r e o f t h e e n t i r e sation chambers and wired AEC connection manner.system. It can also improve the technology are therefore elimi-

util isation rate of rays thereby nated thus improving dose utili- During the Reporting Period we strengthened our service staffing for products in the industrial field and increased

signif icantly reducing the inci- sation and reducing radiation. on-site and in-plant services to ensure the timeliness and efficiency of our services. For products in new application

dent dose of X-rays.fields we carried out a full range of training for our engineers to effectively enhance their skills in the application and

troubleshooting of the products in new application scenarios to comprehensively improve the quality of our services. In

addition our overseas maintenance centres further enhanced maintenance efficiency and timeliness by strengthening

Green design - reducing the environmental impact of products and protecting the green planet the management of the maintenance material flow cycle.Reduce the use of electronic components iRay Technology practices responsible marketing based on the principles of truthfulness and honesty. We strictly abide

by the Advertising Law of the People’ s Republic of China the Law of the People’ s Republic of China on the Protection

We try to streamline the redundant design in hardware circuits by removing unnecessary electronic materials of Consumers’ Rights and Interests and other relevant laws and regulations of the place where we operate. We are

and reducing the consumption of electronic components. In addition we mainly optimise the power supply committed to carrying out publicity and marketing practices in compliance with domestic and foreign laws and regula-

topology and improve the overall power efficiency which reduce the power consumption of the whole ma-

tions social norms and ethical standards and to protecting the rights and interests of customers.chine and heat generation thereby improve the performance of the whole machine and reducing the loss of

electronic components.We have established Sales Management Procedures and Sales Control Procedures clearly requiring our sales staff to

promote and sell products to customers by using brochures and promotional content in line with the company's norms

Strictly restrict the use of lead in a factual non-exaggerated and non-misleading manner. with realistic non-exaggerated and non-misleading infor-

mation. In accordance with the standard procedure documents the company checks that product functions claimed

High Voltage Technology and Palwex Technologies have set strict limits on the use of lead in radiation source and data released to the public have undergone strict experimental tests and the publicity and advertising materials

products to achieve an optimal balance between reducing radiation leakage and minimising the use of lead. have been reviewed and finalized by the Product Department the Marketing Department and the Legal Department

thus achieving the scientific authenticity and validity of the promotional materials. In addition before signing a product

sales contract with a customer the company will remind the customer that relevant information related to the product

Energy-efficient Mars wireless detector function should be correctly understand and we make specific agreements in the contract content. to ensure that both

parties correctly understand the specific expressions related to the product function. Meanwhile in our RBA Manage-

To reduce the frequency of battery replacement in the detector and lengthen the battery life Mars wireless

detector has a new low-power mode which can significantly reduce energy consumption and save battery ment Handbook we expressly prohibit employees from misleading or deceiving customers by falsely or arbitrarily

power. exaggerating the advertising statements. To improve product traceability and avoid product confusion and misuse we

formulated the Marking and Traceability Control Procedures to record and track data related to product production

inspection sales and after-sales service. We also disseminate responsible marketing knowledge to employees through

Improve packaging of Intra-oral dental detector daily weekly monthly and online meetings to raise their awareness on responsible marketing. During the Reporting

Period we conducted responsible marketing related training sessions covering 100% of our employees.The Company follows the concept of green development to improve the wired oral dental detector. Without

compromising protection the Company changes the separate packaging and mixes twenty-seven oral

dental detectors in one packaging which effectively saves packaging materials and reduces the impact on

the environment.During the Reporting Period our subsidiaries Palwex Technologies and High Voltage Technology separately stipulated

the power conversion efficiency of high-voltage generators for different applications in their product design outlines

to minimise energy consumption by way of design optimisation.45 iRay Technology ESG Report 2023 46

02

Employee Care and

Talent Development

iRay Technology understands that employees are at the

heart of iRay Technology’ s core strengths that drive the

long-term sustainable development of enterprises. We are

committed to bui ld ing eff ic ient and profess ional talent

team and advanced management system to provide em-

ployees with comprehensive protection of rights and inter-

ests competit ive salar ies and benef its cont inuous and

complete training and development system and a healthy

and safe working environment helping them to explore

personal growth achieve career advancement and to

share fruits of the company’ s development.Protecting Employees’ Rights and Interests

Optimising Employees’ Benefits

Empowering Employee Development

Ensuring Health and Safety

SDGs47 iRay Technology ESG Report 2023 48

Protecting Employees’ Rights and Interests Diversity and Equal Opportunities

The Company has formulated and implemented the Social Responsibil ity Policy in the RBA Management Manual . We promote diversity in our workforce as we believe that diversity in employee structure is an engine for innova-

We are committed to respecting and safeguarding the basic rights and interests of employees and we adhere to tion and growth. We uphold the principles of fairness and equality and firmly oppose any form of discrimination in

the values of diversity and inclusion providing employees with fair development opportunities building efficient the employment relationship and we never discriminate against employees based on race ethnicity colour social

employee communication mechanisms and creating a workplace of equality and mutual trust. class nationality religious beliefs disabil ity gender sexual orientation age physical abil ity political affi l iation

political party or marital status. Therefore we respect and encourage differences and provide a fair stage for

our employees to show their talents. In addition we comply with the Law of the People’ s Republic of China on the

Social Responsibility Policy in the RBA Management Manual Protection of Women’ s Rights and Interests . We implement equal pay for equal work in the Company and ensure

that female employees receive comprehensive welfare and care. With the continuous expansion of the Company's

Prohibit child and forced labour and reject suppliers or subcontractors using child or forced

globalisation layout the Company's global workforce had reached 1661 and turnover rate of employees is 8% as

labour;

Respect the freedom of employees and prohibit any form of forced labour; at the end of the Reporting Period which indicates that we have made great achievements in team building and

Provide safe and hygienic working and l iving conditions to ensure the safety and health of operational efficiency.employees;

Promote labour-management cooperation and respect employees’ freedom of association Employee ratio

and right to collective bargaining;

Provide an equal and fair working environment and prohibit any form of discriminatory be-

Number of Employees by Number of Employees Number of Employees Number of Employees

haviour;

Gender by Age by Educational Background by Profession

Respect the basic human rights of employees and prohibit any form of degrading behaviour;

Schedule production reasonably and make reasonable arrangements for staff 's working

hours as well as their rest and leave;

Provide reasonable wages and benefits that meet at least the basic needs of employees. ?? ?? ??? ??

?????????

?????????

???

??????????

??

Man Woman Aged ?? and under Doctor and above Finance staff

Aged ?? to ?? Master's degree Administrative staff

Aged ?? to ?? Bachelor's degree research staff

Compliant Employment Aged ?? and above Below bachelor's degree Production staff

Salesman

Employee Communication

We strictly abides by the Labour Law of the People 's Republic of China the Labour Contract Law of the People 's

Republic of China and other laws and regulations of the country and region where we operate. The Company We encourage equal dialogue and establish a diversified channels of communication and feedback for employees

signs the Labour Contract with employees in accordance with local laws and regulations and the principles of and we listen carefully to the voices of employees. We collect feedback from employees through multiple channels

legality fairness equality voluntary consensus honesty and credibility to protect the legitimate rights of employ- including staff representative meetings staff representative groups and al l centres’ service WeChat groups.ees. Meanwhile we have established and improved the relevant rules and regulations such as the Employee Hand- Through various activities such as CEO luncheons and employee seminars we care for and help meet the needs of

book and the Human Resources Control Procedure Document in accordance with the law making clear provisions employees. At the same time the Company has established internal and open channels for appeals and com-

on recruitment dismissal labour contract management salary training performance assessment and other plaints. If employees observe i l legal behaviour such as forced labour chi ld labour and discrimination they can

aspects. report through face-to-face talks phone calls emails and other measures. The Company wil l arrange relevant

We are committed to complying with internationally recognised labour standards and to respecting and protect-

teams to investigate and correct the situation in a timely manner.ing the human and labour r ights of our employees. We str ict ly prohibit chi ld labour and forced labour. During

recruitment we investigate the real age of candidates via identity documents and other effective means to pre- During the Reporting Period we held the fifth annual employee satisfaction survey with the average satisfaction

vent the unintentional use of child labour. We take prompt action to stop any child labour identified and arrange reaching 89.56% and employee satisfaction shows a trend of increasing year by year compared with previous

physical examinations for them and notify the local labour bureau. With the consent of the labour bureau we will years. We col lect employees’ feedback from various aspects such as corporate culture career development

escort the child to his or her legal guardian freely. If necessary the Company wil l provide appropriate financial sense of achievement and team satisfaction. According to the reasonable suggestions of employees to the Com-

assistance and other resources to ensure the chi ld completes his or her compulsory education. In addition we pany and the team we promote the delicacy management of the team optimise the col laboration process of

strictly comply with laws and regulations adopting the Standard Hour System to ensure that employees enjoy each department. Through these measures we have further improved the management level of the Company cre-

reasonable and sufficient rest time. We also adopt the principle of consensus for overtime that is overtime appli- ated an organisational culture suitable for the development of employees and increased their motivation and

cations require an approval of the superior department head. creativity.49 iRay Technology ESG Report 2023 50

Optimising Employees’ Benefits Benefits and Care

The Company fully recognises and appreciates the efforts made by employees and therefore continues to opti- The Company strictly abides by the laws and regulations of the country and region where we operate such as the

mise the remuneration and incentive system and provide comprehensive employee benefits. Through a variety of Regulations on Paid Annual Leave of Employees of the State Council to ensure each employee is entitled to paid

activities to deliver care to our employees we are committed to a professional and comfortable workplace. annual leave as regulated. Employees are free to apply for different types of leave as appropriate such as mar-

riage leave maternity leave personal leave sick leave funeral leave and injury leave. We encourage employees

to take leave when working overtime. We also provide female employees with tocolysis leave maternity leave

Remuneration and Incentives breastfeeding leave and maternity allowance. While we provide male employees with full paid paternity leave to

actively respond to the government’ s call for population policy.We have set up a remuneration system with fairness and incentives for our employees in order to ful ly mobil ise To improve our employees’ abil ity to cope with potential risks and accidents we provide social insurance for do-

their enthusiasm and initiative. We have formulated the Annual Performance and Remuneration Adjustment Pro- mestic employees including pension insurance medical insurance injury insurance unemployment insurance ma-

gram . Under the program we define remuneration for different positions and employment levels and adjust remu- ternity insurance and housing provident fund. For overseas employees we provide social benefits including pension

neration based on the annual performance assessment scores of employees. These competitive incentive systems insurance and medical insurance. In addition the Company also pay commercial medical insurance for domestic

attract and retain outstanding talents and provide strong impetus for the Company’ s sustainable development. employees and their children to ensure the health and happiness of the whole family.To continuously drive joint innovation and development of employee and company we have established an intel- We care about the physical and mental health of our employees and are committed to balancing their work and

lectual property reward mechanism to give cash rewards and awards to employees who play an important role in l ife so as to enhance their quality of l ife and enjoyment. We arrange free physical check-ups for each employees

intellectual property contributions. Meanwhile the Company handles the registered permanent residence for tal- every year and provide cross-park shuttle buses and talent apartment rental services for employees in need. We

ented employees returned overseas students senior employees and new graduates in Shanghai to enhance em- also provide sports venues to encourage employees to relax after work. We also provide birthday benefit cards

ployee loyalty. We have applied for government-run talent subsidies specialised awards for talents in key indus- and hol iday gifts at regular intervals . In addit ion we provide hospital isation reimbursement and wedding and

tries and "Pearl Peak Talent" a talent support policy of Pudong New Area in Shanghai for more than 20 employ- funeral subsidies for employees. iRay Technology has organized sports clubs including badminton clubs football

ees. We also publicly reward outstanding employees by organising annual commendation meetings to enhance clubs basketball clubs. We call for enthusiasts and carry out fun activities including badminton table tennis bas-

their sense of achievement and belonging to the Company. ketball and sports meeting to enhance the cohesion among employees and enliven the corporate culture. The two

subsidiaries also organise special activities and distribute holiday benefits on Lantern Festival Women’ s Day Chil-

In addition we have launched the restricted share incentive scheme to further motivate our employees and share

dren’ s Day Dragon Boat Festival Mid-Autumn Festival Christmas Day and other festivals.the benefits of development with them. During the Reporting Period we have completed the verification of the list

of those eligible for the first vesting period and the second vesting period of the reserved grant portion of the

Company's 2021 Restricted Share Incentive Plan an actual total of 173200 shares were vested covering 244 indi-

viduals. On 14 October 2023 the Company released the restricted share and the draft share options incentive

scheme granting 3 million shares to 455 employees for the first time including 1 mill ion restricted shares and 2 mil-

l ion. The large scope of the incentive covering senior management core technical staff and other core cadres

demonstrates our confidence in long-term growth.Lantern Festival activity Children’ s Day activity

Tabloid sports activity Woman’ s Day activity51 iRay Technology ESG Report 2023 52

Empowering Employee Development Employee Training

The Company firmly believes that every employee has unlimited potential. We attach importance to the building of talent pipe- We continue to provide training and growth opportunities for our employees and boost their career development in an attempt

lines and are committed to creating a pioneer team in the industry. We have formulated a fair and clear career development to build innovative and dynamic talent pipelines. To achieve the mutual development of the Company and employees we have

path for our employees and provided fair and transparent performance feedback. We help our employees achieve career set up and continuously improve the training system by considering the overall strategic development objectives departmental

growth and personal value enhancement through diversified and innovative training systems injecting vitality into the performance objectives and the actual job qualifications. Besides we formulate training plans by department and function every

Company’ s long-term sustainable development. year according to the Human Resources Control Procedure and Employee Handbook. We also arrange full-time trainer to con-

duct and control the training program to ensure the effective implementation. We also provide abundant internal and external

training resources for all employees. In addition to arranging the Company’ s junior and senior managers professional back-

Performance Management and Promotion bones and outbound trainees as lecturers we also invite external partners such as experts scholars and professional training

institutions to provide high-quality training and lecture. Similarly we have set up a rotation system and a mentoring system for

fresh graduates. Through a fresh graduate on-boarding camp we assist them in their career progress to cultivate talents for

To provide fair and impartial performance assessment feedback and promote the mutual growth of employees and the Com- the Company.pany we have formulated the Performance Assessment and Rating Plan. This plan provides scientific and effective performance

management and a classified performance assessment system. According to the plan the Company carries out a multi-dimen- Training System ofiRay Technology

sional performance assessment for management and junior staff respectively in terms of performance competence work atti-

tude and practice of core values. The Company rewards employees according to their performance in order to motivate them

and continuously improve their performance. At the end of the performance assessment department managers will talk to the Forms Internal Training External Training

Tutorials seminars classroom learning online learning

employee with a lower performance rating individually to understand the employee’ s work performance and provide him/her

with suggestions for improvement. If employees disagree with the results of the performance assessment they are free to com-

municate directly with their supervisors or provide feedback to the relevant departments through an open email address. Mean- Types Products Quality regulations Specialities Other categories

while we have also formulated the Rank and Position System Table to sets the career path in management technology sales

and speciality for employees in different rank and position. We informed all employees of their career paths by email to make the

information open and transparent. Onboarding Continuous Quality Management

training business training management capacity

In addition we regularly review talent and conduct internal promotion competitions according to the strategic plan to maximise Content

the full potential of talents and provide promotion opportunities for front-line employees. We give full play to the potential of Training for the

talents and work hand in hand with our employees to move towards excellence. Our subsidiaries iRay Taicang and iRay Haining Laws and Product board of directionsGeneral skills

has formulated the Management Rules for Blue Collar (Post) Job Orientation and Promotion. Based on the rules the subsidiaries regulations knowledge supervisory and

create a fair and open competition mechanism and encourages employees to pursue promotion through internal recommenda- senior management

tion or application to achieve career development. During the Reporting Period iRay Taicang initiated the internal promotion

competition in the fall of 2023 with a total of 14 employees entering the promotion coaching phase and participating in the pro-

motion training courses and the departmental mentor coaching program.During the Reporting Period we organised a total of 216

training sessions (including 186 internal training and 30累计组织培训内部培训外部培训

external training). The completion rate of on-the-job

training and on-boarding training for fresh graduates ???场 ???场 ??场

and for new employees and training for the board of

directions supervisory and senior management reached

100%. The training covered a wide range of topics such

as professional technology product knowledge quality

awareness industry regulations production safety legal

awareness cybersecurity technical process and man-

agement standards. Through such training we helped

employees quickly apply what they learned in practices.During the Reporting Period iRay Haining completed its

annual training plan with a total of 52 training items. In

addition during the Reporting Period we assisted 12

employees in obtaining national skill certificates related

to their occupations which further facilitated their

career advancement.53 iRay Technology ESG Report 2023 54

Ensuring Health and Safety

The Company takes the protection of employees’ physical and mental health as the foundation of business activities. We have

established a sound workplace safety management system to minimise occupational health risks with effective management

processes and mechanisms.Work Safety Management System

The Company strictly complies with the laws and regulations of the countries and regions where we operate such as the Work

Safety Law of the People's Republic of China and the Regulations of the People's Republic of China on Industrial Injury Insurance.We have set up a three-tier safety management framework which enables the company's management carry out direct super-

vision of occupational health and safety and production security. Furthermore the Company follows the safety policy of "Safety

and Prevention First and Comprehensive Management" and the basic principle of "Production Safety is Everyone's Responsibili-

ty" and have formulated the Environment Health and Safety (EHS) Management Manual the Emergency Plan and the Organisa-

tion Chart of Environment Health and Safety. Under these systems the Company carries out safety management such as train-

ing and education supervision and inspection rectification of potential safety hazards and construction of safety infrastructure

in a systematic and standardised manner. Our subsidiary iRay Taicang has built a dual prevention system - graded risk control

and hazard detection and management and passed the Level-2 certification of safety production standardisation. Besides by

the end of the Reporting Period iRay Haining had improved the safety production management system in accordance with the

ISO 45001 Occupational Health and Safety Management System pending for the certification audit results.The three-tier safety management framework of iRay Technology is as follows:

New employee training camp 2023 Safety committee of the Group Abide by national and governmental laws and regulations on workplace safety

Top leadership for workplace Implement the planning and requirements of regulators on workplace safety

safety management Make decisions and resolutions on safety based on iRay's production and operation

Monitorinspect coordinate communicate on and guide the work relating to pro-

duction safety

Office of Safety Committee of Inspect and assess the progress and effects of the safety work assigned by the

the Group Safety Committee

Executive body Check the time line of the assignments from the Safety Committee and ensure

completion in time

Abide by relevant laws and regulations

Practice the workplace safety principles established by the Group and imple-

Local Offices of the Safety ment the assignments from the Group's Safety Committee

Committee Responsible for education supervision and inspection of workplace safety rectifi-

Integrated capacity training Systematic training cation of hazards signing of the Workplace Safety Responsibility Statement

information feedback and infrastructure safety

During the Reporting Period 92.67% of the employees are trained and the percentage of employees trained by gender and the

average training hours per employee in Shanghai headquarters and its main subsidiaries iRay Taicang and iRay Haining are as Our subsidiaries set annual production safety targets based on the actual operation of the production sites. The production per-

follows: formance will be included in the performance assessment of departments and individuals thus fully implementing the production

safety responsibility system among all employees. At the beginning of each year iRay Taicang and iRay Haining set EHS key

action plans based on the Statement of Responsibility in EHS Management. The two subsidiaries set quantitative targets about

Percentage of trained employees Average training hours of employees safety and occupational health including the timely hazard rectification rate the achievement rate of special inspection plan the

achievement rate of training plan the permit rate of special equipment licence the rate of employment with special operation

Man 93.03% Man 9.4 hours certificate the rate of fire protection maintenance and detection the safety rate of hazardous factors in workplace the spot

inspection rate of occupational health protection facilities and the timely completion rate of physical examination. In addition

Woman 92.05% Woman 10.1 hours each subsidiary carries out monthly and annual meetings to review the implementation of the plans and ensure the implementa-

tion of relevant tasks from top to bottom. During the Reporting Period iRay Taicang and iRay Haining had fulfilled their EHS key

Note: The average training hours in 2023 decreased from 2022 due to adjustments made to the operating and training model. action plans with iRay Taicang achieving 100% of the quantitative indicators for both work safety and occupational health.55 iRay Technology ESG Report 2023 56

Work Safety Training

We attach great importance to the improvement of employees’ safety awareness safety management skills risk recognition iRay Technology continues to make products suitable for lower-dose radiation but how to avoid potential injury caused by radi-

ability and emergency response ability. Therefore we have formulated the Management System for Education and Training on ation to employees during operation is still the top priority for us to protect employees' health. Our production bases have

EHS and set up a three-level safety education system for new employees. This system ensures that new employees are trained established the Management Rules and Regulations on the Safety and Protection of Radiation and the Management Ledger for

and assessed at company level department level or workshop level and team level before working. We also provide targeted Workers Exposed to Radiation which require strict implementation of the procedures of occupational health monitoring and

safety education to employees when they change job categories return to work or before new technologies processes equip- archival records for personnel. We require that radiation-related operators must receive safety training on radiation and obtain

ment and materials are put into use. In addition we continue to promote the safety awareness among all employees. We carry certificates before taking up the post and familiarise themselves with the on-site radiation protection facilities and on-site

out production safety training for on-the-job employees through multiple levels (such as among factory level workshop level and equipment and facility management. They also need to master the standard on-site safety operation requirements radiation

team level) all channels (such as in the form of training lectures and meetings) and different feedback (such as through system protection requirements etc. reducing the occupational health risk of employees at the source.practice and tests) so as to comprehensively improve employees’ ability to recognise and respond to safety risks.In addition to reduce the potential risks caused by chemicals to employees the Company has prepared the Management Regu-

lations on Chemicals and other documents to standardise the management processes of chemical procurement storage trans-

Case iRay Taicang improved training methods and enriched training themes portation use and disposal. Also iRay Haining carried out the on-job training plan including Chemical Safety Radiation Safety

Hazardous Substance Management and other topics to improve employees' awareness of safety and self-protection. During

In 2023 iRay Taicang improved the training materials and assessment methods at workshop level and team level on the the Reporting Period no work-related injuries or work-related fatalities happened and the number of hours of work lost due to

basis of safety training at factory level and effectively enhanced the understanding of trainees through case studies and work-related injuries was zero.interactive discussions. At the same time the subsidiary added topics such as the emergency use of fire-fighting facilities

personnel first aid Cardiopulmonary resuscitation (CPR) automated external defibrillator (AED) emergency response team While protecting employees' occupational health we also care about their physical health. We invited external professionals to

(ERT) and emergency response control (ERC) mechanism to diversify the training themes and promote the safety awareness guide and train employees to master basic first-aid skills to cope with emergencies.

of employees. During the Reporting Period iRay Taicang conducted a total of 77 training sessions covering 668 employees.Protecting Employees’ Occupational Health Case iRay Haining carried out personnel first aid training

In March 2023 iRay Haining

We strictly comply with the laws and regulations of the country and region where we operate such as the Law of the People's

engaged 12 employees to par-

Republic of China on the Prevention and Control of Occupational Diseases and the Decision of the State Council on Further

ticipate in Red Cross first aid

Strengthening the Occupational Health and Safety. iRay Taicang and iRay Haining have respectively prepared the Manage-

training and CPR/AED training

ment Regulations on Identification and Improvement of Ergonomics the Occupational Hygiene Management System the Man-

with all participants certified. In

agement Regulations on Protective Equipment for Labour and other documents. They are committed to reducing occupational

November 2023 iRay Haining

hazards in the workplace to a greater extent and protecting employees' occupational health.arranged about 80 employees

to participate in first aid training

We pay close attention on the health of employees to prevent and control potential risks. We regularly arrange occupational

organised by the Red Cross in

health check-ups for personnel exposed to occupational hazards and invite a qualified third party to test and evaluate hazard

Haining City. During the training

factors in the workplace. Our subsidiaries iRay Haining iRay Taicang and iRay Advanced Material etc. has developed a

pre-evaluation mechanism for occupational disease hazards and built personal file for employees exposed to occupational employees learned first aid methods including the use of CPR and AED wound dressing and the Heimlich manoeuvre

disease hazards. At the same time we attach importance to the installation of occupational disease protection facilities such as with all of them certified.the physical guards linkages and barriers for special machinery which are designed to prevent employees from parts that may

cause injury. In addition we equip employees exposed to occupational disease hazards with personal protective equipment such

as professional safety goggles protective face-shield protective boots and protective garment to reduce employees’ exposure

to potential hazards.Protecting Health and Safety of Relevant Parties

Case iRay Taicang passed the annual third-party testing for occupational hazards (including radiation)

In addition to safeguarding the occupational health of our employees we also care about the health and safety of those who

In November 2023 iRay Taicang entrusted a third-party agency to detect occupational disease hazards and occupational enter our production bases. We have developed Management Regulations on the Contractor's EHS and the Management Regu-

sanitation for the plant. The third-party agency comprehensively tested the air quality physical and chemical hazardous lations for the Safety of Related Parties. The policies require the base managers to review qualifications approve the factory

factors in workplace according to the Occupational Exposure Limits for Hazardous Agents in the Workplace (GBZ/T 2.2-2007 entry process and working and offer EHS training for contractors. Also the base managers should oversee and inspect the

& GBZ/T2.1-2019). The agency also tested the X-ray and γ-ray radiation dose rate according to the Radiological Protection operation process to further standardise the construction by external personnel in the production base and thus avoid acci-

Standard for Low-energy Radiation Generating Devices (DB 32/T4186-2021). The test results met relevant national require- dents. During the Reporting Period iRay Haining optimised the admittance qualification checks for external contractors and

ments indicating that iRay Taicang’ s occupational hazards had been strictly controlled within a reasonable range. required the relevant personnel to sign the Construction Site Notification for External Personnel. This document enabled external

construction operators to further understand our safety management-related requirements thus preventing safety risks.57 iRay Technology ESG Report 2023 58

03

Low Carbon and

Green Development

iRay Technology always adheres to the concept of green

development and is committed to fulfilling its environmen-

tal and social responsibilities. We continue to optimise our

environmental management system in our daily produc-

tion and operations to reduce pollutant emissions there-

by promoting energy conservation and emission reduc-

tion. In addition we recycle resources and actively organ-

ise environmental awareness campaigns steadily moving

towards a healthier and greener path of development.Implementing Environmental Management

Strengthening Emmision Management

Improving Resource Efficiency

Responding to Climate Change

Practising Green Office

SDGs59 iRay Technology ESG Report 2023 60

Implementing Environmental Management Strengthening Emmision Management

The Company actively fulfills its responsibilities for environmental governance and strictly complies with the laws and regulations iRay Technology strictly complies with the laws and regulations of the country or region where it operates such as the Atmo-

of the country or region where it operates such as the Environmental Protection Law of the People’ s Republic of China and the spheric Pollution Prevention and Control Law of the People's Republic of China the Water Pollution Prevention and Control Law

Law of the People's Republic of China on Environmental Impact Assessment. Our subsidiaries iRay Haining and iRay Taicang have of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of Environmental Pol-

developed and issued internal regulations such as Management Rules on Waste Gas Waste Water and Industrial Residue and lution by Solid Waste etc. Since iRay Technology’ s main business is the research and development production sales and service

Noise and Management Rules on Resources and Energy Management and established an environmental management frame- of core components such as digital X-ray detectors and it is not classified as a key pollutant enterprise regulated by the environ-

work involving senior managers and multiple departments. Both the management structure and the institutional system ensure mental protection department. To ensure compliant discharge and waste management we have formulated internal manage-

the sound operation of environmental management governance thereby continuously improving the overall environmental per- ment systems such as the Management Rules on Waste Gas Wastewater and Industrial Residue and Noise. According to these

formance of the Company. During the Reporting Period we strengthened the environmental management system from multiple systems we have established an emission management system. Relying on online monitoring equipment we reduce pollution

aspects such as optimising the environmental management system and process building environmental management team. By through a variety of treatment facilities for wastewater exhaust gas and wastes and management initiatives minimising nega-

doing so we are more capable of meeting the requirements of the ISO 14001 Environmental Management System Certification. tive impacts on the surrounding environment.In addition we regularly monitor emissions and the environment to keep abreast of the environmental performance of our oper-

ating sites. We also have an environmental emergency plan to respond to and handle those emergencies immediately. During the Waste gas treatment Wastewater treatment

Reporting Period the Company reported no noncompliance with environmental laws and regulations.The waste gas is completely collected by the Wastewater treatment stations were set up. All

closed collectors plastic powder curing waste gas wastewater is discharged to the sewage pipe

treatment equipmentsprayed by water treated network designated by the local environmental

by filter cottonadsorbed by the activated carbon department after reaching the standard and then

and after catalytic combustionto realize 100% is treated by the municipal sewage treatment

standarded discharge. plant.Emission

Management

Measures

Non-hazardous solid waste treatment Hazardous waste treatment

Non-hazardous solid wastes in different catego- The hazardous waste is collected by classification

ries are collected stored and treated: resource and disposed of by a qualified third-party manu-

waste is collected and handed over to qualified facturer.recycling manufacturers for recycling; solid waste

generated in the production process is handed

over to qualified units for treatment; domestic

waste is handled by the administrative depart-

ment.During the Reporting Period emission data of iRay Technology is as follows:

Emission category Unit Emission in 2023 Emission in 2022

Wastewater Ton 148305.4 234309.0

Non-hazardous solid waste Ton 166.2 135.8

Hazardous solid waste Ton 18.4 8.1

Note:

1. Due to the increase of pure water recycling and reuse in some processes of iRay Taicang and water-use system optimization of iRay Haining

in 2023 the data of wastewater discharge has decreased compared with 2022;

2. In accordance with hazardous solid waste transfer and disposal joint sheet most of hazardous solid waste generated by iRay Taicang in 2023

was disposed of in January 2024 which has been included in the scope of 2023. As iRay Haining plant went into full operation in 2023 the amount of

non-hazardous and hazardous solid waste increased as compared with those in 2022.61 iRay Technology ESG Report 2023 62

Improving Resource Efficiency Water Resources Management

Energy Management We strictly comply with the Water Law of the People’ s Republic of China and other laws and regulations of the countries or

regions in which we operate. We strictly restrict the use of water resources at all stages in daily operations. We also advocate

water conservation in all aspects and carry out recycling of water resources to improve the efficiency of water use.The Company continues to optimise its energy management system and promote energy saving and carbon reduction. We have

set up a cross-departmental cooperation structure for energy management and established annual energy targets based on

We have formulated the Management Rules on Resources and Energy Management and comprehensively strengthened the

historical electricity consumption data production planning and other indicators. At the same time we actively install energy-effi-

management of water resources use through operation management and daily publicity. In regular operation the Company

cient equipment and monitor energy usage and follow up on abnormalities in our daily operations. We also conduct timely and

installs water meters at each operation base to record and monitor water consumption and regularly review water efficiency.regular maintenance of equipment to ensure efficient energy management. The Company also encourages employees to par-

We implement and strengthen daily inspections maintenance and management of water equipment promptly address leaks

ticipate in energy conservation and emission reduction work and rewards the departments or employees with outperformance.and other issues and strengthen pipeline maintenance to reduce unnecessary water loss. We also construct rainwater collection

devices and other recycled water devices to improve the efficiency of water resource utilization. In terms of raising awareness

We continue to develop and implement technically safe and reliable economically feasible and reasonable energy-saving proj-

we widely post water-saving signs in production living and office areas. We strive to cultivate a culture among our employees

ects and improve energy utilization efficiency through measures such as eliminating high-energy-consuming equipment using

that saves water and turns off taps when they are not in use. Additionally we encourage our employees to actively propose wa-

energy-saving equipment and optimizing energy-saving processes. During the Reporting Period we had carried out a total of 28

ter-saving measures as well as advocate for and practise the secondary use and recycling of water resources.energy efficiency improvements. We also make full use of integrated digital system collaborate with multi-party to effectively

improve production and operational efficiency. Take the deep excavation technology of iRay Haining as an example. iRay Hain-

ing used a green digital software platform to improve the energy efficiency of the data centre through digital tools such as

energy efficiency comparison and artificial intelligence (AI) control. By centralising coating unloading with a Manufacturing Execu- The water of iRay Technology is mainly sourced from municipal water. During the Reporting Period the

tion System (MES) and Product Lifecycle Management (PLM) system the subsidiary effectively reduced the working time of the water consumption data is as follows:

low humidity rotary dehumidifier handling unit for clean room in coating workshop. iRay Haining plans to save 2000 kWh of elec-

tricity per year and carry out a heat recovery project for ice machine cooling water at the same time thereby achieving efficient Water Data Unit Consumption in 2023 Consumption in 2022

reuse of heat energy and reducing the consumption of natural gas in boilers.Water consumption Ton 272731.8 294419.4

????年使用量

Water consumption intensity Ton/10000 yuan of operating income 1.5 1.9

During the Reporting Period the energy consumption data of iRay Technology is as follows: Note: In 2023 iRay Taicang increased the amount of recycled water in some production process so water consumption decreas-

es compared to 2022.Energy category Unit Consumption in 2023 Consumption in 2022

Electricity MWh 35091.8 24233.2

Natural gas Cubic meter 404302.0 309419.0

Gasoline Ton 4.0 3.2

Direct energy consumption MWh 4421.8 3385.8

Indirect energy consumption MWh 35091.8 24233.2

Total energy consumption MWh 39513.6 27619.0

Energy consumption intensity MWh/10000 yuan of operating income 0.21 0.18

Note:

1. The energy consumption is calculated based on the consumed natural gas gasoline and purchased electricity.

2. Due to some sections of iRay Haining plant were at full production and iRay Taicang plant went into full operation in 2023. the electricity and natural

gas increased.

3. Due to an increase in business activities and an increase in the frequency of use and mileage of official vehicles in 2023 gasoline consumption

increased.63 iRay Technology ESG Report 2023 64

Material Recycling Responding to Climate Change

iRay Technology standardises the management of material use in the production process and considers the environmental As COP28 (the 28th session of the Conference of the Parties of the United Nations Framework Convention on Climate Change)

impact of each production stage aiming to maximise the utilization of metal materials and packages in the production process. opens a new chapter in the global climate response contributing to mitigate climate change will gradually become the consensus

We repurpose the cardboard boxes used for glass raw materials as internal intermediate product packaging. When packaging of all industries. iRay Technology actively responds to the United Nation’ s call and China’ s "dual carbon" strategy that is to

waste is generated we first inspect the condition of the boxes and reuse them as much as possible. For those that cannot be achieve carbon peaking by 2030 and carbon neutrality by 2060. We continue to pay attention to climate governance and

reused directly we collect and sort them for recycling by qualified waste recycling companies. respond to climate change by improving energy efficiency and reducing greenhouse gas emissions.During the Reporting Period the GHG emission data is as follows:

Case iRay Haining and iRay Haining carried out the recycling of cardboard and foam GHG emission category Unit Consumption in 2023 Consumption in 2022

With the enhancement of the Company's awareness of environmental protection our subsidiaries iRay Haining and iRay Direct greenhouse gas emissions tCO e 886.3 678.8

2

Taicang carried out packaging material recycling during the Reporting Period. They recycled packaging materials such

as cardboard foam and other packaging materials through the internal flow of direct recycling to maximize the benefits Indirect greenhouse gas emissions tCO e 21239.5 14758.92

of resource utilization and to achieve a win-win situation in terms of economic benefits and environmental benefits. During

Total greenhouse gas emissions tCO e 22125.8 15437.7

the Reporting Period iRay Haining recycled a total of approximately 5000 sets of foam from the high-pressure produc- 2

tion and surface treatment process resulting in a total cost saving of approximately RMB100000. In addition through the Greenhouse gas emission density tCO e/10000 yuan of operating income 0.12 0.10

2

implementation of relevant initiatives and publicity activities the staff's awareness and enthusiasm for packaging materi-

al recycling has been effectively enhanced which also provides a boost to the company's green development. Note: GHG emissions of natural gas and gasoline are calculated in accordance with the Accounting Methods and Reporting Guidelines for Greenhouse

Gas Emissions of Enterprises in Other Industries issued by the National Development and Reform Commission; the GHG emissions generated by

outsourcing power in China shall be calculated according to the 2021 provinces electricity carbon dioxide emission factor issued by the Ministry of Ecol-

ogy and Environment of the People’ s Republic of China and the National Bureau of Statistics of the People’ s Republic of China in 2024; At the same

time we have also recalculated and presented the relevant data for 2022 in accordance with the updated emission factors in order to safeguard the

comparability of the data.The Company strives to enhance its ability to respond to extreme weather risks caused by climate change. We have developed

a Special Emergency Plan for Natural Disasters established a graded response mechanism for various types of natural disasters

such as floods typhoons lightning and other natural disasters and set up an emergency rescue command team led by senior

management of the Company to further strengthen the monitoring early warning and response work in the face of various types

of natural disasters. At the same time we have established an Emergency Response Mechanism to further refine and implement

specific response plans for scenarios such as power outages and water supply interruptions.We make emergency drill plans every year and regularly carry out safety training against typhoons high temperatures and

other extreme weather for all employees to popularise and strengthen emergency knowledge. On this basis we periodically

conduct natural disaster emergency drills and enhance employees' practical ability to respond to emergency procedures and

During the Reporting Period iRay Technology carried out the recycling and disposal of wooden products ensure our efficiency and effectiveness in responding to extreme weather.cardboard metal and plastic waste and achieved specific results:

Case Flood and Typhoon Prevention Drill

Emission category Unit Emissions in 2023 Emissions in 2022

Wooden products recycled ton 0.3 36.7 On 11 August 2023 the Company organised an emergency drill for flood and typhoon prevention. The Company carried

out thorough drills including material preparation at early stage safety reminders in response measures to deal with

Cardboard recycled ton 1.6 137.9 urban water logging and post-disaster relief. These drills not only improved the Company’ s ability to respond to sudden

natural disasters but also raised employees’ safety awareness and enhanced their emergency response skills. During the

Plastic recycled ton 30.3 90.5

drill we also promptly improved potential issues identified to ensure emergency response capabilities before natural

Metal recycled ton 12.0 / disasters.Total recovery and treatment ton 44.2 265.1

Note: During the Reporting Period we handled over the wooden products and cardboard to suppliers to recycle so both the

emissions decreased compared with 2022; as the recycling utilization rate of plastic pallets increased the plastic recycled also

decreased compared with 2022. During the Reporting Period iRay Taicang adopted metal pallets instead of wooden pallets

and recycled metal waste such as metal pallets so metal recycled increased in 2023. Filling flood-control sandbags on-site personnel training on-site emergency rescue operations65 iRay Technology ESG Report 2023 66

Practising Green Office

iRay Technology practices and promotes the concept of green operation incorporating specific environmental protection mea-

sures into various aspects of the Company's daily operation and encouraging every employee to participate in green office

actions. During the Reporting Period we promoted environmental awareness and skill training of employees. We conducted

internal and external training to enable our employees to better understand the requirements of environmental protection-re-

lated regulations and external standards and master green environmental protection skills and methods. These trainings have

effectively raised employees’ awareness of ecological issues and environmental protection creating a favourable atmosphere

within the Company for all employees to participate in environmental protection.Green meeting

Advocate online meeting to replace unnecessary travel and reduce the environmental footprint brought by travel.Saving electricity

Encourage employees to turn off the lights air conditioners and other electronic equipment when leaving the office

and assign personnel to patrol the area.Set the timing for turning on and off street lights according to weather conditions and automatically switch off

landscape lights every day.Lock the temperature setting function through the air conditioning system to keep it in a reasonable range to reduce

energy consumption.Reducing paper consumption

Promote paperless office reduce paper consumption through electronic workflow and promote double-sided printing.Environmental protection education

Actively plan environmental protection education popularise environmental protection and improve the

environmental awareness of all employees.67 iRay Technology ESG Report 2023 68

04

Responsible Pro-

curement and Re-

silient Management

iRay Technology has sharpened its supply chain manage-

ment capabil ity and is committed to building long-term

solid partnerships with suppliers. While ensuring that our

suppliers meet high standards of quality and delivery we

always aim to build a sustainable supply chain in the long

term. Sticking to responsible procurement we compre-

hensively convey our environmental and social require-

ments to our suppliers to jointly create a win-win sustain-

able supply chain ecosystem.Improving Supply Chain Management

Fostering a Responsible Supply Chain

SDGs69 iRay Technology ESG Report 2023 70

Improving Supply Chain Management Supplier Performance Assessment

iRay Technology lays down a range of internal regulations such as the Management Rules on Supplier Selection and Assessment In the daily management after development and admittance the Company carries out monthly performance monitoring and

and the Management Rules on Supplier Audit therefore specifying a range of supplier management regulations on certification annual assessment of qualified suppliers to ensure that they always meet the management and product requirements. We con-

standards and processes to classify and manage suppliers throughout the lifecycle. These regulations effectively manage all duct graded management linked to business share and conduct regular performance evaluations from multiple dimensions such

aspects of the supply process such as supplier development and audit and supplier performance assessment. During the Report- as delivery timeliness product quality etc. Based on the evaluation results suppliers are classified into four grades: A/B/C/D. We

ing Period we introduced the Supplier Relationship Management (SRM) system. Through the system we realised the digital man- incentivise suppliers who actively fulfil our management requirements. For suppliers who fail the performance evaluation we pro-

agement throughout the supply chain for key aspects such as quotation ordering and delivery effectively enhancing the effi- vide guidance through interviews on-site evaluations and other methods. We also require and assist suppliers to prepare

ciency of supply chain management. improvement plans to meet our requirements and grow with us. During the Reporting Period we conducted annual performance

evaluation of all qualified suppliers; and training 100% of suppliers who failed the evaluation.Supplier Development and Audit

Level A Level B Level C Level D

In the process of supplier development and audit we review the qualifications of potential suppliers according to the Potential

Supplier Profile and the Supplier Assessment Scorecard prepared by us. We also select suppliers according to our requirements Preferred in consequent Maintain current Formulate improvement Gradually terminate

in terms of product quality and hazardous substances management giving priority to those that have passed international stan- cooperation management mode plans urge their rectifica- cooperation

dard system certification. tion and lower the share of

procurement

Propose demands Questionnair e

On-site inspection Assess review Finalise the list of

for supplier survey on

of suppliers results qualified suppliers

development potential suppliers

The primary process of supplier scouting and audit

By the end of the Reporting Period the proportion of suppliers selected by iRay Technology who have

passed international standard system certification was as follows:

Supplier Empowerment and Training

Certification Approximate proportion

To promote the efficient and high-quality operation of the total quality management system of products we actively carry out

ISO 9001 Quality Management System 80%

training and exchanges with suppliers. In doing so we convey the quality requirements and problems encountered in cooperation

to our partners and promote the quality of suppliers’ materials and services laying a solid foundation for the long-term sustain-

ISO 45001 Occupational Health and Safety Management System 30% able and high-quality development of the Company.ISO 14001 Environmental Management System 40% During the Reporting Period we trained some of our key suppliers and communicated with them on a monthly basis to ensure the

quality of product delivery. In addition we analyse and summarise the production process of some new raw material suppliers

ISO 13485 Medical Devices Quality Management System 25% and carry out relevant quality training for them. This enables the suppliers to further understand the Company’ s acceptance

standards empowering their growth with us.71 iRay Technology ESG Report 2023 72

Fostering a Responsible Supply Chain

iRay Technology attaches great importance to the sustainable development of suppliers and actively works with partners in the

supply chain to create a responsible value chain. We continuously strengthen communication with suppliers in supplier assess-

ments and daily activities emphasising the Company’ s requirements for business ethics environmental protection and social As of December 31 2022 100% of suppliers signed the Statement on Conflict Minerals.responsibility.We require all new suppliers to sign a series of documents such as the Statement on Conflict Minerals RoHS Compliance State-

ment REACH Compliance Statement China Restriction VOC Survey and Statement Quality Assurance Agreement and the Integ-

rity Agreement to ensure that all suppliers meet our requirements for a sustainable supply chain. During the Reporting Period

under the newly formulated iRay Technology Integrity Guideline suppliers were required to comply with a number of require-

ments about EHS compliant employment responsible mineral procurement and conflict of interest. We also carry out theme pro- As of December 31 2022 100% of suppliers signed the Integrity Agreement.motion for all new suppliers during the access phase to ensure they comply with relevant laws and regulations and assume their

own environmental and social responsibilities. In addition we add audit requirements for suppliers’ environmental and social

responsibility performance in the Supplier Assessment Scorecard to screen and evaluate suppliers in a stricter manner. We also

actively optimise our supply chain structure and management to reduce environmental and social risks in our supply chain.For materials such as packaging labels and mechanical components we give priority to local suppliers. For example we work Case Collaboration with Suppers for the Recycling of ESD Boxes

with local suppliers in Suzhou and Jiaxing to improve the efficiency and synergy of our supply chain network. As a result we effec-

tively reduce logistics and inventory costs while significantly reducing carbon emissions in the logistics process and minimising We actively cooperated with upstream suppliers and downstream clients in the recycling of packaging materials in order

excess inventory and material obsolescence. During the Reporting Period we cooperated with suppliers of CNC (Computer to minimise the use of resources and reduce the environmental footprint of the supply chain. We had established a

Numerical Control) materials to promote the recycling of cardboard boxes and packaging liners of CNC materials by setting up long-term electrostatic discharge (ESD) boxes reuse mechanism. After the suppliers use the ESD boxes to deliver materi-

temporary storage rooms inside the warehouses etc. and the recycling rate reached 70%. als we collect and store them in a designated location in our warehouse. We then periodically return the boxes to the sup-

pliers for reuse reducing packaging waste while lowering their packaging costs. Our ESD box recycling rate exceeds 95%.73 iRay Technology ESG Report 2023 74

05

Caring for Society

and Shouldering

Responsibility

Relying on its global layout iRay Technology promotes the

inclusive medical care. We provide efficient safe and afford-

able high-end medical equipment and service to developing

countries delivering warmth and care to society. Meanwhile we

are well aware of the importance of X-ray imaging and

high-end manufacturing technicians to medical quality and

industrial development. The Company therefore leverages its

resources to train high-quality practical talents contributing to

national medical imaging and high-end manufacturing.SDGs75 iRay Technology ESG Report 2023 76

Case iRay Technology delivered products to 300+ hospitals in India for inclusive medical care Case iRay Taicang set a practical training classroom with on-site practice by internal experts to nur-

ture practical talents

Our Mars 1417V product is a 14×17-inch wireless static flat panel detector that utilizes AED and other technologies to pro- In May 2023 iRay’ s Training Centre in Taicang welcomed 44 apprentices from the Jiangsu Taicang Secondary Vocation

vide clear images stable and reliable wireless performance and long battery life. With its many advantages our Mars School to start a new round of joint training programmes. Equipped with an independent R&D centre a non-mass pro-

1417V and other products to 300+ hospitals in India in 2023 which will greatly contribute to the construction of the local duction pilot line a simulation production line and all the high-end professional instruments and tools involved in produc-

basic healthcare system in India and enhance the well-being of human health with technological innovation. tion the iRay’ s Training Centre creates an environment that is realistic and close to the actual production and

establishes a comprehensive practical training environment for the cultivation of a new generation of " innovative

advanced and leading" talents.In addition in order to improve the quality of the training iRay Taicang sent engineers with rich production experience to

lead the students to master the practical ability through knowledge training skill explanation and on-site practice etc. so

as to cultivate new talents for the development of the industry.Case The company joins hands with universities to verify innovative technologies and deepen the

cooperation of "industry-university-research".With the deepening of "industry-university-research" cooperation we have carried out mutual cooperation with Huazhong

University of Science and Technology Shanghai University and other universities. Based on scientific and technological

innovation projects the company provides a platform for the scientific research and innovation ideas verification for

teachers and students. And we help scientific research and technological innovation implement in line with industry. At the

same time the company provides training opportunities for students majoring in medical image helping the cultivation of

industry talents and cultivates high-quality skilled talents with profound theoretical knowledge and strong practical ability.Case The company serves hospitals and jointly cultivates clinical medical engineering talents

We provide innovative medical imaging products to six tertiary hospitals in Shanghai (Shanghai Sixth People's Hospital

Xinhua Hospital affiliated to Shanghai Jiao Tong University School of Medicine Huashan Hospital affiliated to Fudan Uni-

versity and Tongji Hospital of Tongji University etc. We assist in comparative research on the application of domestic and

imported devices helping product innovation and further meet the actual needs of medical imaging. At the same time

we assist the hospital in cultivating medical engineering talents with clinical knowledge and experience.77 iRay Technology ESG Report 2023 78

Feedback From Readers

Thank you for reading the Environmental Social and Governance Report of iRay Technology 2022. We sincerely invite

you to give your comments and suggestions on this report to help us better communicate valuable information to stake-

holders and improve our ESG management.You can fill in the feedback form and give it back to us via:

Email: ir@iraygroup.com

Address: Building 45 No. 1000 Jinhai Road Pudong New Area Shanghai

Postcode: 201206

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6. What are your other comments and suggestions on iRay Technology and this report:iRay Technology Company Limited