ACES — AGM Information 2020

Jul 6, 2020

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ACES ELECTRONICS CO., LTD.

Handbook for the 2020 Annual Meeting of Shareholders

Date: June 24, 2020

Place: 3F, No.398, Minquan Rd, Zhongli District, Taoyuan City (Hotel Kuva Chateau)

Table of Contents

Item	Page
I. Meeting procedure�������������������������������������������������������������	1
II. Meeting Agenda��������������������������������������������������������������	2
1. Reports Items������������������������������������������������������������	3
2. Proposals Items����������������������������������������������������������	4
3. Discussion Items���������������������������������������������������������	5
4. Extemporary Motions��������������������������������������������������	5

ACES ELECTRONICS CO., LTD.

Procedure for the 2020 Annual Meeting of Shareholders

1. Call the Meeting to Order

2. Chairman Remarks

3. Reports Items

4. Proposals Items

5. Discussion Items

6. Extemporary Motions

7. Meeting Adjourn

1

ACES ELECTRONICS CO., LTD.

Agenda of 2020 Annual Meeting of Shareholders

Time：9:00 a.m. on Wednesday, June 24, 2020

Place：3F, No.398, Minquan Rd, Zhongli District, Taoyuan City (Hotel Kuva Chateau)

Meeting Agenda：

1. Report on attending shares of shareholders

2. Call the Meeting to Order

3. Chairman Remarks

4. Reports Items

(1) The 2019 Business Report

(2) The Supervisor’s Review Report on the 2019 Financial Statements

(3) The 2019 Employees’, Directors’ and Supervisors’ Remuneration

(4) Cash dividend distribution report of 2019 Earnings Distribution

1. Proposals Items

(1) Adoption of the 2019 Financial Statements and Business Report

(2) Adoption of the proposal for distribution of 2019 Earnings

1. Discussion Items

(1) To Release Directors from Non-competition Restrictions

1. Extemporary Motions

2. Meeting Adjourn

2

Reports Items

1. The 2019 Business Report.

The 2019 Business Report is attached as page 6-7.

1. The Supervisor’s Review Report on the 2019 Financial Statements. The 2019 Supervisor’s Review Report is attached as page 8-10.

2. The 2019 Employees’, Directors’ and Supervisors’ Remuneration.

3. The Board of Directors meeting on March 26, 2020 approved the employees’ remuneration totaling NT$27,478,133 and the Directors’ and Supervisors’ remuneration totaling NT$9,795,438, both are paided in cash.

4. Cash dividend distribution report of 2019 Earnings Distribution.

5. (1)According to Article 25 of the Articles of Incorporation, the Board of Directors is authorized to make a decision to distribute all or part of the dividends and bonuses to be paid in cash and report to the shareholders' meeting.

6. (2)The Board of Directors meeting on March 26, 2020 approved to distribute the cash dividends of NT$91,796,913 and a dividend of NT$0.75 per share. The cash dividends will be calculated to the nearest NT dollars. The remainder will be transferred into the account of the company’s other income.

7. (3)In the event of that the outstanding shares is affected by any other factors in future, it is proposed that the Board of Directors be authorized to adjust the dividend rate. And, it’s proposed that the Chairman be authorized to resolve the ex-dividend date and other relevant issues.

3

Proposals Items

1. Adoption of the 2019 Financial Statements and Business Report.

2. (Proposed by the Board of Directors) Explanation：

   • (1)The Company’s 2019 Financial Statement, including the balance sheet, income statement, statement of changes in shaeholders’ equity, and statement of cash flows, were audited by Shu-Chih Yang and Pei-Chi Chen, accountants at CPA firm of KPMG.

   • (2)The 2019 Business report, independent auditors’ audit report, and the above-mentioned Financial Statements are attached in the Meeting Agenda, page 6-7 and page 11-26.

(3)The proposal is submitted for discussion. Resolution：

1. Adoption of the proposal for distribution of 2019 Earnings. (Proposed by the Board of Directors) Explanation：

2. (1)The 2019 Earnings Distribution was approved by the Board of Directors and reviewed by the Supervisors.

(2)The 2019 Earnings Distribution Table, please refer to the page 27.

(3)The proposal is submitted for discussion. Resolution：

4

Discussion Items

1. To Release Directors from Non-competition Restrictions.

(Proposed by the Board of Directors) Explanation：

• (1)According to Article 209 of Company Act, adopt a proposal for release the prohibition on directors from participation in competitive business. The details of releasing of Non-competition restrictions for the director, please refer to the following table.

• (2)The proposal is submitted for discussion.

Positions Description for Directors serve in Other Companies

Name of Director

Positions in Other Companies

WEI-JI Investment Limited Company Representative: Huang Wen- Cheng

Chairman of Global Vision International Investment Corp. Chairman of Global Fortune Management Corp. Chairman of Hua Chun Venture Capital Corporation Independent Director of YFY Inc. Independent Director of Chenbro Micom Co., Ltd. Director of TungThih Electronics Co., Ltd. Independent Director of Entire Technology Co., Ltd. Supervisor of ezTravel Co., Ltd. Supervisor of ezTravel Travel Service Co., Ltd. Director of Eland Information Co., Ltd. Director of Global Fortune Investment Corp. Director of Phoenix Innovation Investment Corporation

Resolution：

Extemporary Motions

Meeting Adjourn

5