ACES — AGM Information 2021

Sep 14, 2021

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ACES ELECTRONICS CO., LTD.

Handbook for the 2021 Annual Meeting of Shareholders

Date: June 25, 2021

Place: No.530-6, Sec. 2, Guoling Rd., Zhongli District, Taoyuan City, Taiwan (ACES’s Precision Engineering Center)

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 2021 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 2021 Annual Meeting of Shareholders

Time：9:00 a.m. on Friday, June 25, 2021

• Place：No.530-6, Sec. 2, Guoling Rd., Zhongli District, Taoyuan City, Taiwan (ACES’s Precision Engineering Center)

Meeting Agenda：

1. Report on attending shares of shareholders

2. Call the Meeting to Order

3. Chairman Remarks

4. Reports Items

(1) The 2020 Business Report

(2) The Supervisor’s Review Report on the 2020 Financial Statements

(3) The 2020 Employees’, Directors’ and Supervisors’ Remuneration

(4) Cash dividend distribution report of 2020 Earnings Distribution

1. Proposals Items

(1) Adoption of the 2020 Financial Statements and Business Report

(2) Adoption of the proposal for distribution of 2020 Earnings

1. Discussion Items

(1) Amendment to the Articles of Incorporation

1. Extemporary Motions

2. Meeting Adjourn

2

Reports Items

1. The 2020 Business Report.

The 2020 Business Report is attached as page 6-7.

1. The Supervisor’s Review Report on the 2020 Financial Statements. The 2020 Supervisor’s Review Report is attached as page 8-10.

2. The 2020 Employees’, Directors’ and Supervisors’ Remuneration.

   • The Board of Directors meeting on March 29, 2021 approved the employees’ remuneration totaling NT$29,672,453 and the Directors’ and Supervisors’ remuneration totaling NT$8,851,729, both are paided in cash.

3. Cash dividend distribution report of 2020 Earnings Distribution.

   • (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.

   • (2)The Board of Directors meeting on March 29, 2021 approved to distribute the cash dividends of NT$85,677,119 and a dividend of NT$0.7 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.

   • (3)In the event of that the outstanding shares are affected by any other factors in future, it is proposed that the Chairman 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 2020 Financial Statements and Business Report. (Proposed by the Board of Directors) Explanation：

   • (1)The Company’s 2020 Financial Statement, including the balance sheet, income statement, statement of changes in shaeholders’ equity, and statement of cash flows, were audited by Heng-Shen Lin and Pei-Chi Chen, accountants at CPA firm of KPMG.

   • (2)The 2020 Business report, independent auditors’ audit report, and the above-mentioned Financial Statements are attached in the Meeting Agenda, page 6-7 and page 11-24.

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

1. Adoption of the proposal for distribution of 2020 Earnings. (Proposed by the Board of Directors) Explanation：

   • (1)The 2020 Earnings Distribution was approved by the Board of Directors and reviewed by the Supervisors.

(2)The 2020 Earnings Distribution Table, please refer to the page 25.

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

4

Discussion Items

1. Amendment to the Articles of Incorporation.

(Proposed by the Board of Directors)

Explanation：

• (1)In order to conform to amendments to related Compnay Act and the establishment of an Audit Committee in 2022, the company hereby proposes to amend the Articles of Incorporation.

• (2)Please refer to Page 26-27 for details.

(3)The proposal is submitted for discussion.

Resolution：

Extemporary Motions

Meeting Adjourn

5