REXON — AGM Information 2024

Jun 4, 2024

Stock Code: 1515

Rexon Industrial Corp., Ltd. Agenda Handbook for the 2024 Annual Meeting of Shareholders

Integrity‧Stability‧Growth

==> picture [157 x 45] intentionally omitted <==

Date: May 30, 2024 (Thu), at 9 am

Place: No. 261, Renhua Rd., Dali Dist., Taichung City (meeting room of the Company)

Type of Meeting: Physical shareholders’ meeting

Table of Contents

Table of Contents	Table of Contents
ONE.MEETING AGENDA ................................................................................................................................................ 1
I.	CALL TO ORDER ....................................................................................................................................................... 2
II.	CHAIRPERSON REMARKS .................................................................................................................................... 2
III.	MANAGEMENT PRESENTATION ........................................................................................................................ 2
IV.	MATTERS TO BE RATIFIED .................................................................................................................................. 3
V.	DISCUSSIONS ............................................................................................................................................................. 4
VI.	EXTRAORDINARY MOTIONS ............................................................................................................................... 4
VII.	ADJOURNMENT ........................................................................................................................................................ 4
TWO. ATTACHMENT ........................................................................................................................................................ 5
I.	2023 BUSINESS AND FINANCIAL REPORTS OF THE COMPANY .............................................................. 5
II.	AUDIT REPORT OF THE AUDIT COMMITTEE ............................................................................................. 25
III.	EARNINGS DISTRIBUTION TABLE .................................................................................................................. 26
IV.	COMPARISON TABLE FOR THE AMENDMENTS OF THE “ARTICLES OF INCORPORATION” .. 27
THREE. APPENDIX ......................................................................................................................................................... 28
I.	ARTICLES OF INCORPORATION (BEFORE AMENDMENT) .................................................................... 28
II.	RULES OF PROCEDURE FOR SHAREHOLDERS’ MEETING ................................................................... 34
III.	SHAREHOLDING OF DIRECTORS .................................................................................................................... 36

One. Meeting Agenda

Rexon Industrial Corp., Ltd. Agenda for the 2024 Annual Meeting of Shareholders

Time: May 30, 2024 (Thu), at 9am

Place: No. 261, Renhua Rd., Dali Dist., Taichung City (meeting room of the Company)

• I. Call to Order

• II. Chairperson Remarks

• III. Management Presentation

• (I). 2023 Business report.

• (II). Audit Committee’s review report on the 2023 financial statements.

• (III). Report on distribution of the remuneration to employees and directors in 2023.

• (IV). Distribution of cash dividends from profits in 2023.

• IV. Matters to be Ratified

• (I). Ratification of 2023 financial statements.

• (II). Ratification of earnings distribution for 2023.

• V. Discussions

• (I). Amendment of the “Articles of Incorporation” of the Company

• VI. Extraordinary Motions

• VII. Adjournment

1

I. Call to Order

II. Chairperson Remarks

III. Management Presentation

Proposal 1: 2023 Business report.

Description: For the 2023 business report of the Company, please refer to the Attachment 1 of the Handbook on pages 5-24.

Proposal: Audit Committee’s review report on the 2023 financial statements.

Description: For the Audit Committee’s review report for 2023, please refer to Attachment 2 of the Handbook on page 25.

• Proposal 3: Report on distribution of the remuneration to employees and directors in 2023.

• Description: For the distribution of the remuneration to employees and directors in 2023, the Board of Directors adopted a resolution to distribute 2023 employee compensation of NT$36,188,541 and Directors' remuneration of NT$6,400,000 in cash.

Proposal 4: Distribution of cash dividends from profits in 2023. Description:

1. According to Article 25 of the Company’s Articles of Incorporation,if all or part of the dividends are distributed in the form of cash, the board of directors is authorized to do so with the attendance of more than twothirds of the directors and the approval of more than half of the directors present, and report to the shareholders' meeting .

2. The total dividends distributed to shareholders in 2023 were NT$217,768,200, all of which were cash dividends, with a distribution of NT$1.2 per share.

3. Board of Directors authorized the chairman to set up the base date of dividend distribution and the date of distribution.

2

IV. Matters to be Ratified

Proposal 1: [Proposed by the Board of Directors] Proposal: The 2023 financial statements of the Company submitted for ratification.

Description:

1. The 2023 final accounting reports have been adopted by the Board of Directors and audited by the Audit Committee. They are herewith submitted for ratification.

2. For the final accounting reports, please refer to Attachment 1 of the Handbook on pages 5-24.

Resolution:

Proposal 2: [Proposed by the Board of Directors] Proposal: The Company’s 2023 earnings distribution for ratification. Description:

1. 2023 earnings distribution was planed from 2023 net profit after tax, deducting the appropriation of legal reserve as required by regulations , and distributing dividends to shareholders.

2. For the 2023 earnings distribution Table of the Company, please refer to Attachment 3 of the Handbook on page 26.

Resolution:

3

V. Discussions

Proposal 1: [Proposed by the Board of Directors] Proposal: Discussion on the amendment of the “Articles of Incorporation” of the Company.

Description:

1. In order to add business items,the Company plans to amend some provisions of the “Articles of Incorporation”.

2. For the comparison table for the amendments, please refer to Attachment 4 of the Handbook on page 27.

Resolution:

VI. Extraordinary Motions

VII. Adjournment

4

Attachment 1

Two. Attachment

I. 2023 Business and Financial Reports of the Company

(I). Business Report

The war, geopolitics, stagflation, unceasing increase of the interest rate and loosening of the lockdown restrictions in 2023 resulted in weak demand, high stock quantity and decreased demand. Despite the adverse business environment, we operated prudently and steadily and persisted in the core value of our fundamental business by manifesting our competitive advantages and operating our business firmly in this wave of economic changes.

1. Business results in 2023

• (1). Implementation status of the business plan

The consolidated operating revenue in 2023 was NT$6,708,461 thousand with a increase of NT$2,159,153 thousand (47.46%) in comparison with the amount of NT$4,549,308 thousand in 2022. The consolidated net profit after tax in 2023 was NT$311,039 thousand with earnings per share of about NT$1.70.

(2). Implementation status of budgets

Since we did not make 2023 publication of financial forecasts, no budget implementation status needs to be disclosed.

(3). Analysis of financial expenditure and profitability

	Item	2022	2023
Financial structure(%)	Debt to assets ratio %	54.74	58.51
Solvency (%)	Current ratio %	96.00	99.98
	Quick ratio %	78.64	85.08
Profitability (%)	Return on assets(%)	-2.77	3.97
	Return on equity (%)	-7.71	8.48
	Earnings per share (NTD) (current period)	-1.65	1.70

(4). R&D status

As for machine tools, we continued to innovate and used patents to provide products that exceeded the customer’s expectations. The diversification of the product mix was achieved through the model of brand and retailer strategy alliances and the interactions among places of origin. As for fitness devices, we accelerated the development of new products and increased the items to meet the quick-

5

changing and multiple demands of the customers. We grew together with them and pursued high quality to their satisfaction. As for new business, we used our core technologies in line with the market trend and grasped the opportunity to develop product areas for our new business.

2. Summary of the 2024 business plan

• (1). Operating guidelines and important policies

• (A).Create the best benefit for related parties with sustainable operations as the goal.

• (B). Provide premium products and services for brand customers with our leading electromechanical technique.

• (C). Uphold the philosophy of getting to the bottom of matters and continual improvement to achieve lean manufacturing and management.

• (2). Business expectations and critical production/marketing policies

The global economy and market supply and demand will remain uncertain in 2024. The management team of the Company will uphold our corporate culture of “Integrity, Stability and Growth” and create competitive differentiation with total lean management and technical innovation to meet the requirements of the customer, create a win-win relationship with our partners, and achieve the optimal growth and sustainable development of the Company.

• (3). Our development strategies will be affected by the external competitive

environment, regulatory environment and overall business environment.

With the inherited attitude of “More Than Better”, the leading

electromechanical integration technique, and the vision to provide brand customers with total services, we will be dedicated to the core competitive advantages of “leading technique”, “excellent manufacturing”, “quality first” and “customer trust” to provide services that meet the requirements of the customers and achieve the goals of growth in both revenue and profit. With the spirit of “More than Better” and “Continuous Improvement”, the management team and outstanding employees will create and consolidate our leading position and enhance the differentiation against

6

our competitors to achieve the optimal growth and sustainable development of the Company, overcome the challenges in the external competitive environment, regulatory environment and overall business environment, and understand and control all the operational risks.

Finally, we sincerely extend our appreciation to all of our shareholders for your support. Please don’t hesitate to give encourage and comments to our management team in the future.

May we wish you all

Good Health and Good Luck

President:Wang Kuan-Hsiang General Manager:Lo Cheng-Chou Accounting Manager:He Hsiu-Yuan

7

4

(II). Financial Reports

1. Please refer to pages 5-24 of the Handbook.

2. Independent Auditors’ Report, KPMG Taiwan

INDEPENDENT AUDITORS ’ REPORT

To the Board of Directors of Rexon Industrial Corp., Ltd.:

Opinion

We have audited the consolidated financial statements of Rexon Industrial Corp., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2023 and 2022, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee ( “ IFRIC ” ) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Revenue recognition

Please refer to Note 4(o) and Note 6(s) of the consolidated financial statements for accounting policies on revenue recognition and revenue recognition, respectively.

8

4-1

Description of key audit matter:

The Group recognizes revenue when the control over a product has been transferred to the customer as specified on the various sales terms in each individual contract with customers. Revenue is recognized in each individual contract with customers. The improper timing in recongnition of revenue before and after the financial reporting date may materially impact financial statements. Therefore, revenue recognition is one of the key areas our audit focused on.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures include testing the effectiveness of internal control on recongnition of revenue; ensuring the transaction conditions and revenue of the sale contracts have been properly recorded; random sampling of sales transactions within a certain period before and after the financial reporting date; analyzing the client contract of the sample; and evaluating the transaction conditions contained in the sales contract to confirm that revenue recognition has been recorded in an appropriate period.

2. Valuation of Inventories

The accounting principle of inventory, refer to consolidated financial statements Note 4 (h), the assessment of accounting estimate and assumption uncertainty, refer to consolidated financial statements Note 5 (b); the explanation of inventory assessment refers to consolidated financial statements Note 6 (d).

Description of key audit matter:

Due to the introduction of new products such as machine tools or fitness machines may cause significant changes in consumer demand, the original product outdated may no longer meet the market demand, or by the electric tool market recession and competitors’ low-cost strategy and other factors so that the sale of related products may be volatile, it easily leads to the cost of inventory may exceed its net realizable value of the risk; therefore, inventory valuation is considered as one of a key audit matter.

How the matter was addressed in our audit:

In relation to the key audit matter above, includes the allowance for uncollectible inventory valuation losses of the Group and the rationale of calculation method, implementation of the sampling procedures to check the inventory and the net realized value to compare with the past period situation and analyze whether the loss of the value of the deposit in the current period is disclosure appropriately.

Other Matter

Rexon Industrial Corp., Ltd. has prepared its parent-company-only financial statements as of and for the years ended December 31, 2023 and 2022, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

9

4-2

’ Those charged with governance (including the Audit Committee) are responsible for overseeing the Group s financial reporting process.

Auditors ’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

10

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Kuo, Shyh-Huar and Chang, Tzu-Hsin.

KPMG

Taipei, Taiwan (Republic of China) February 27, 2024

11

3. Consolidated balance sheet

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar)

==> picture [915 x 409] intentionally omitted <==

12

4. Consolidated statement of comprehensive income

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar , except earnings per share)

==> picture [612 x 666] intentionally omitted <==

14

5. Consolidated statement ~~of changes in equity~~

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar)

==> picture [904 x 352] intentionally omitted <==

15

6. Consolidated statement of cash flow

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar)

==> picture [603 x 687] intentionally omitted <==

16

3

7. Audit report

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Rexon Industrial Corp., Ltd.:

Opinion

We have audited the financial statements of Rexon Industrial Corp., Ltd.(“the Company”), which comprise the balance sheets of December 31, 2023 and 2022, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statements Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the parent company only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Revenue recognition

Please refer to Note 4(o) and Note 6(s) of the parent company only financial statements for accounting policies on revenue recognition and revenue recognition, respectively.

17

3-1

Description of key audit matter:

Revenue is recognized when the control over a product has been transferred to the customer as specified in each individual contract with customers. Revenue is recognized in each individual contract with customers. The improper timing in recognition of revenue before and after the financial reporting date may materially impact financial statements. Therefore, revenue recognition is one of the key areas our audit focused on.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures include testing the effectiveness of internal control on recognition of revenue; ensuring the transaction conditions and revenue of the sale contracts have been properly recorded; random sampling of sales transactions within a certain period before and after the financial reporting date; analyzing the client contract of the sample; and evaluating the transaction conditions contained in the sales contract to confirm that revenue recognition has been recorded in an appropriate period.

2. Valuation of Inventories

The accounting principle of inventory, refer to parent company only financial statements Note 4 (g), the assessment of accounting estimate and assumption uncertainty, refer to parent company only financial statements Note 5 (a); the explanation of inventory assessment refers to parent company only financial statements Note 6 (d).

Description of key audit matter:

Due to the introduction of new products such as machine tools or fitness machines may cause significant changes in consumer demand, the original product outdated may no longer meet the market demand, or by the electric tool market recession and competitors’ low-cost strategy and other factors so that the sale of related products may be volatile, it easily leads to the cost of inventory may exceed its net realizable value of the risk; therefore, inventory valuation is considered as one of a key audit matter.

How the matter was addressed in our audit:

In relation to the key audit matter above, includes the allowance for uncollectible inventory valuation losses of the Company and the rationale of calculation method, implementation of the sampling procedures to check the inventory and the net realized value to compare with the past period situation and analyze whether the loss of the value of the deposit in the current period is disclosure appropriately.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’ s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

18

3-2

’ Those charged with governance (including the Audit Committee) are responsible for overseeing the Company s financial reporting process.

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

19

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Kuo, Shyh-Huar and Chang, Tzu-Hsin.

KPMG

Taipei, Taiwan (Republic of China) February 27, 2024

20

8. Balance Sheet

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD.

Balance Sheets

December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollar)

==> picture [949 x 384] intentionally omitted <==

21

9. Statement of comprehensive income

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)

REXON INDUSTRIAL CORP., LTD. Statements of Comprehensive Income For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar , except earnings per share)

==> picture [583 x 565] intentionally omitted <==

22

10. Statement of changes in equity

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)

REXON INDUSTRIAL CORP., LTD. Statements of Changes in Equity For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar)

==> picture [972 x 391] intentionally omitted <==

23

11. Statement of cash flow

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. Statements of Cash Flows For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollar)

==> picture [536 x 628] intentionally omitted <==

24

Attachment 2

II. Audit Report of the Audit Committee

Audit Report of the Audit Committee

We, the Audit Committee of the Company, hereby acknowledge that the

Board of Directors has worked out and submitted hereto the business report,

financial statements, and earnings distribution proposal of the Company for 2023 and that among them, the financial statements have been duly audited by KPMG with an audit report issued. The above business report, financial reports and earnings distribution proposal have been audited by the Audit Committee and no discrepancy has been found. We, therefore, prepare this report for your reference in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

To

Rexon 2024 Annual Shareholders’ Meeting

Rexon Industrial Corp., Ltd.

Audit Committee Convener: Wu Chwan-Chyuan

February 27, 2024

25

Attachment 3

III. Earnings Distribution Table

Rexon Industrial Corp., Ltd. Earnings Distribution Table 2023

Rexon Industrial Corp., Ltd. Earnings Distribution Table 2023
	Unit: NTD thousand
Undistributed earnings at beginning of period	1,192,412,449
Plus: Remeasurement of defined benefit plan	10,255,580
Minus: Appropriation Special reserve as reserved deduction of equity	(8,375,662)
Plus: Net profit (loss) in current year	308,768,111
Distributable earnings	1,503,060,478
Distribution:
Minus: Appropriation of legal reserve	(31,064,803)
Minus: shareholder dividends-cash(NT$1.2per share)	(217,768,200)
Undistributed earnings at end of period	1,254,227,475

President:Wang Kuan-Hsiang General Manager:Lo Cheng-Chou Accounting Manager:He Hsiu-Yuan

26

Attachment 4

IV. Comparison table for the amendments of the “Articles of Incorporation”

	Amended Provision	Current Provision	Description
	Article 2: The Company is engaged in the following businesses: (Omitted) 50.CC01060 Wired Communication Equipment and Apparatus Manufacturing 51.CC01070 Wireless Communication Mechanical Equipment Manufacturing 52.CC01080Electronics Components Manufacturing 53.CD01060 Aircraft and Parts Manufacturing 54.CD01990 Other Transport Equipment and Parts Manufacturing 55.E603050 Automatic Control Equipment Engineering 56.F113110 Wholesale of Batteries 57.F119010 Wholesale of Electronic Materials 58.I101100 Aviation Consulting 59.I301010 Software Design Services 60.I301020 Data Processing Services 61.JE01010 Rental and Leasing 62.ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval	Article 2:The Company is engaged in the following businesses: (Omitted) 50.ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval.	Bsiness items is added.
	Article 29: (Omitted) The 36th amendment was on May 30, 2024.	Article 29: (Omitted)	An amendment date is added.

27

Appendix 1

Three. Appendix

I. Articles of Incorporation (Before amendment)

Rexon Industrial Corp., Ltd. Articles of Incorporation

Chapter 1 General Provisions

Article 1: The Company is founded in accordance with the requirements of Company Limited by Shares in the Company Act and named “力山工業股份有限公司” in Chinese and “REXON INDUSTRIAL CORPORATION LTD.” in English. .

Article 2: The Company is engaged in the following businesses:

1. C305010 Printing, Dyeing, and Finishing

2. C401030 Tanning and Dressing of Leather; Dressing and Dyeing of Fur

3. C501060 Manufacture of Wooden Containers

4. C501990 Manufacture of other products of wood

5. C801060 Synthetic Rubber Manufacturing

6. C801100 Synthetic Resin and Plastic Manufacturing

7. C802200 Coating, Paint, Dye and Pigment Manufacturing

8. C805010 Manufacture of Plastic Sheets, Pipes and Tubes

9. C805030 Plastic Daily Necessities Manufacturing

10. C805050 Industrial Plastic Products Manufacturing

11. C805060 Plastic Leathers Products Manufacturing

12. C805070 Reinforced Plastic Products Manufacturing

13. C805990 Other Plastic Products Manufacturing

14. C901070 Cutting, Shaping and Finishing of Stone

15. CA01030 Iron and Steel Casting

16. CA01090 Aluminum Casting

17. CA01100 Aluminium Rolling, Drawing and Extruding

18. CA02010 Manufacture of Metal Structure and Architectural Components

19. CA02030 Screw, Nut and Rivet Manufacturing

20. CA02040 Spring Manufacturing

21. CA02060 Metal Containers Manufacturing

22. CA02090 Metal Wire Products Manufacturing

23. CA02990 Other Metal Products Manufacturing

24. CB01010 Mechanical Equipment Manufacturing

25. CB01990 Other Machinery Manufacturing

26. CB01030 Pollution Controlling Equipment Manufacturing

27. CC01010 Manufacture of Power Generation, Transmission and Distribution Machinery

28. CC01110 Computer and Peripheral Equipment Manufacturing

29. CC01030 Electrical Appliances and Audiovisual Electronic Products Manufacturing

30. CC01040 Lighting Equipment Manufacturing

31. CD01030 Motor Vehicles and Parts Manufacturing

32. CD01040 Motorcycles and Parts Manufacturing

33. CD01050 Bicycles and Parts Manufacturing

34. CE01010 General Instrument Manufacturing

35. CE01030 Optical Instruments Manufacturing

28

1. CH01010 Sporting Goods Manufacturing

2. CI01020 Rug and Felt Manufacturing

3. CK01010 Footwear Manufacturing

4. CN01010 Furniture and decoration manufacturing

5. CP01010 Hand tool manufacturing

6. CQ01010 Mold and Die Manufacturing

7. CZ99990 Manufacture of Other Industrial Products Not Elsewhere Classified

8. F106020 Wholesale of Daily Commodities

9. F113100 Wholesale of Pollution Controlling Equipments

10. F113060 Wholesale of Measuring Instruments

11. F213050 Retail Sale of Measuring Instruments

12. F401010 International Trade

13. H701040 Specific Area Development

14. H701060 New Towns, New Community Development

15. ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval.

Article 2-1: Where the Board of Directors consents, the Company may invest in other companies to the amount more than 40% of the paid-in capital.

Article 3: The Company sets up the head office in Taichung City and, if necessary, may establish branches domestically and overseas upon resolution of the Board of Directors. Article 4: The public announcements of the Company are made in accordance with Article 28 of the Company Act.

Chapter 2 Shares

Article 5: The Company has authorized capital of NT$3.8 billion in 380 million shares. Each share has a par value of NT$10. The Board of Directors is authorized to issue the shares over multiple offerings as deemed necessary to support business activities.

Article 6: The shares of the Company shall be registered and affixed with the signatures or personal seals of the director representing the Company, The shares of the Company may only be issued after being certified by the competent authority or a registration institution approved by the competent authority for the issuance thereof. The Company may be exempted from printing any share certificate for the shares issued, but shall register such issued shares with a centralized securities depositary enterprise.

Article 7: The assignment, transfer, loss, damage, split, or exchange of the Company’s shares or creation of pledge thereof shall be dealt with in accordance with the Company Act as well as related laws and regulations.

Article 8: The transfer of shares shall cease within 60 days prior to the convening date of an annual shareholders’ meeting, or within 30 days prior to the convening date of a special shareholders’ meeting, or within 5 days prior to the record date fixed by the Company for distribution of dividends, bonus or other benefits.

Chapter 3 Shareholders’ Meeting

Article 9: There are annual and special shareholders’ meetings. The annual shareholders’ meeting is held by the Board of Directors within six months after the end of a fiscal year, while the special shareholders’ meeting is held in accordance with applicable laws whenever necessary. Article 9-1: The shareholders’ meeting of the Company may be convened in the form of visual communication network or in other ways promulgated by the central competent authority. Article 10: The date and place of and the reason for the convention shall be communicated to the shareholders thirty days prior to the convention of the annual shareholders’ meeting and fifteen

29

days prior to the convention of the special shareholders’ meeting.

With the consent of the addressee, the meeting notice of the shareholders’ meeting may be delivered in electronic form.

Article 11: Any shareholder who is unable to attend the shareholders’ meeting in person for whatever reasons may appoint a proxy to attend the meeting by executing a power of attorney in accordance with Article 177 of the Company Act.

When a shareholder is unable to attend the shareholders’ meeting in person for whatever reasons, the “Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies” shall apply.

Article 12: If a shareholders’ meeting is convened by the Board of Directors, the meeting shall be chaired by the Chairman. When the Chairman is on leave or for any reason unable to exercise the powers of the Chairman, one of the directors shall be appointed by the Chairman to act as the chair. Where the Chairman does not make a designation, the remaining directors shall elect one among themselves to perform the Chairman’s duties on his/her behalf.

If a shareholders’ meeting is convened by a party with the convening power other than the Board of Directors, the chair shall be determined in accordance with Article 182-1 of the Company Act. Article 13: Except as otherwise specified in laws and regulations, a shareholder of the Company shall be entitled to one vote for each share held.

Article 14: Resolutions at a shareholders’ meeting shall, unless otherwise provided for in the Company Act or other laws and regulations, be adopted by a majority vote of the shareholders present at the meeting who represent more than one-half of the total number of the issued shares. As specified by the competent authority, the shareholders may exercise their voting rights by electronic means. A shareholder who exercises his/her voting right by electronic means shall be deemed to have attended the shareholders’ meeting in person. The relevant matters shall be handled according to the laws and regulations.

Article 15: Matters relating to the resolutions of a shareholders’ meeting shall be recorded in the meeting minutes. The meeting minutes shall be signed or sealed by the chair of the meeting, and a copy shall be distributed to each shareholder within 20 days after the conclusion of the meeting. The distribution of the meeting minutes shall be subject to the Company Act. The meeting minutes shall be retained in the Company together with the attendance book for the shareholders present at the meeting and the power of attorney of the proxy.

Chapter 4 Director and Audit Committee

Article 16: The Company assigns 5 to 9 directors that serve a term of three years. All the directors shall be elected from persons of adequate capacity during shareholders’ meetings, and may be re-elected for consecutive terms. The number of directors shall include no fewer than three independent directors that represent no less than one-fifth of the Board members. The election of the directors is held under the candidates nomination system specified in the Company Act. The matters related to the implementation of the system is subject to the Company Act, Securities and Exchange Act and related laws and regulations. After election, the Company may take out liability insurance for the directors upon resolution of the Board of Directors. The Company may pay remuneration to directors for their implementation of the Company’s duties regardless of the operating profit and loss. The Board of Directors is authorized to determine the remuneration for the directors based on their individual involvement in and contribution to the Company’s operations without exceeding the highest grade of the pay scale specified in the remuneration standard. If there are earnings, the Company may distribute it to remuneration pursuant to Article 25 of the Article of Incorporation.

Article 17: The Board consists of directors. A Chairman shall be elected among Board members at a Board meeting with more than two-thirds of directors present, and with the consent of more than half of all the directors present at the meeting. The Board of Directors deal with all the

30

matters of the Company pursuant to laws, regulations, Articles of Incorporation and the resolutions or the Shareholders’ meeting and Board meeting.

Article 18: The Board meeting shall be called by the Chairman. Except as otherwise specified by the Company Act or the Articles of Incorporation, the resolutions of the Board of Directors shall be adopted by a majority of the present directors at a meeting attended by more than half of all the directors. Any director who is unable to be present at the meeting in person for whatever reasons may appoint another director to attend the meeting on his/her behalf by issuing a proxy. The use of the proxy is subject to related laws and regulations.

For convention of a Board meeting, a notice shall be delivered to each director seven days prior to the commencement of the meeting. However, a Board meeting may be convened at any time in case of emergency.

The aforementioned notice for a Board meeting shall contain the reasons for the convention and may be effected in writing or by fax or e-mail.

Article 19: The duties and powers of the Board of Directors are as follows:

• (1) Planning of business plans.

• (2) Determination of earnings distribution

• (3) Resolution of increase/decrease of capital.

• (4) Review and approval of important regulations, rules and contracts.

• (5) Appointment and dismissal of top managerial officers of the Company.

• (6) Employment of advisors for the Company.

• (7) Establishment and dissolution of branches.

• (8) Review and approval of budges and final accounts.

• (9) Review and approval of trading of properties and investment in other businesses.

• (10) Decision on other significant matters.

• Article 20: The Company’s Board of Directors may set up other functional committees in accordance with laws.

Article 21: Discussions at a Board meeting shall be recorded in the meeting minutes. The meeting minutes shall be signed or sealed by the directors present at the meeting, and a copy shall be distributed to each shareholder within 20 days after the conclusion of the meeting. The meeting minutes shall be retained in the Company together with the attendance book for the shareholders present at the meeting and the power of attorney of the proxy.

Article 22: The Company has the Audit Committee set up in accordance with Article 14-4 of the Securities and Exchange Act. The Committee is comprised of all the independent directors and one of them acts as the convener. At least one of the Committee members shall be specialized in accounting or finance. The Audit Committee and its members exercise the power of supervision pursuant to the Company Act, Securities and Exchange Act and other laws and regulations. Article 23: The Company may appoint manager officers. Their appointment, dismissal and remuneration shall be handled in accordance with the requirements of Article 29 of the Company Act.

Chapter 5 Accounting

Article 24: Upon close of each fiscal year, the Board of Directors shall prepare following documents and submit them to the annual shareholders’ meeting for ratification pursuant to statutory procedures:

• (1) Business report.

• (2) Financial statements.

• (3) Earnings distribution or loss make-up proposal.

Article 25: If there is a profit in a fiscal year, the Company shall allocate at least 5% of the profit as the remuneration to the employees and no higher than 5% as the remuneration to the directors. However, if the Company has accumulated loss, an amount used to cover the loss shall be set

31

aside first. The employees to which remuneration is paid in shares (treasury or new shares) or cash may include those of the controlled or affiliated companies who meet certain criteria. If there are earnings for a year, the Company shall first pay taxes and make up previous losses, followed by setting aside 10% of the earnings as legal reserve; however, no further provision is needed when legal reserve has accumulated to the same amount as the Company’s paid-in capital. A portion of the earnings shall be set aside as special reserve if this is required by the operations of the Company or laws and regulations. The remaining earnings, if any, shall be combined with the undistributed earnings at the beginning of the period, and the Board of Directors shall draft an earnings distribution proposal and submit it to the shareholders’ meeting for approval.

Where all or part of the distributable dividends and bonuses are distributed in cash, the Board of Directors is authorized to adopt the distribution with more than two-thirds of the directors present at the meeting and with the consent of more than half of all attending directors, and report the distribution to the shareholders’ meeting.

Article 25-1: The Company’s dividend policy is adopted in consideration of the current and future development plans, investment environment, funding requirements and domestic and international competition status as well as the interests of the shareholders. The amount of dividends and bonuses allocated to shareholders shall not be less than 20% of the distributable earnings in a given year. Dividends and bonuses may be paid in shares or cash, and cash dividends shall not fall below 20% of total dividends allocated to shareholders.

Article 25-2: If the Company distributes the legal reserve (limited to the portion of the legal reserve which exceeds 25 percent of the paid-in capital may be distributed) and all or part of the capital reserve subject to the Company Act in cash, the Board of Directors is authorized to determine the distribution by a majority of the Directors at a meeting attended by two-thirds or more of the total number of Directors, and then report it to the shareholders’ meeting. Chapter 6 Supplemental Provisions Article 26: The organizational regulations of the Company and their enforcement rules shall be prescribed by the Board of Directors separately. Article 27: The Company may provide guarantees to external parties if required by business. Article 28: Any matters not specified in these Articles of Incorporation shall be governed by the Company Act and other laws and regulations.

Article 29: The Articles of Incorporation was established on April 13, 1973. They were submitted to the competent authority and brought into force after being approved thereby and registered. The 1st amendment was on December 26, 1975.

The 2nd amendment was on November 6, 1976.

The 3rd amendment was on May 18, 1978. The 4th amendment was on May 20, 1980.

The 5th amendment was on January 15, 1982. The 6th amendment was on March 10, 1982.

The 7th amendment was on December 10, 1983. The 8th amendment was on January 16, 1984. The 9th amendment was on April 30, 1984. The 10th amendment was on July 5, 1985. The 11th amendment was on September 1, 1987. The 12th amendment was on August 1, 1989. The 13th amendment was on October 4, 1989. The 14th amendment was on May 25, 1990. The 15th amendment was on April 18, 1991. The 16th amendment was on January 10, 1992. The 17th amendment was on March 25, 1992.

32

The 18th amendment was on March 27, 1993.

• The 19th amendment was on April 19, 1994. The 20th amendment was on June 9, 1995. The 21st amendment was on May 30, 1996. The 22nd amendment was on June 11, 1997. The 23rd amendment was on June 5, 1998. The 24th amendment was on June 9, 1999. The 25th amendment was on June 21, 2000. The 26th amendment was on June 26, 2002. The 27th amendment was on May 20, 2005. The 28th amendment was on June 14, 2006. The 29th amendment was on June 13, 2007. The 30th amendment was on June 19, 2008. The 31st amendment was on June 29, 2010. The 32nd amendment was on June 19, 2012. The 33rd amendment was on May 31, 2016. The 34th amendment was on June 18, 2020. The 35th amendment was on May 30, 2023.

Rexon Industrial Corp., Ltd. Chairman: Wang Kuan-Hsiang

33

Appendix 2

II. Rules of Procedure for Shareholders’ Meeting

Rexon Industrial Corp., Ltd.

Rules of Procedure for Shareholders’ Meeting

• I. Except as otherwise provided by law, the Company’s shareholders’ meetings are held in accordance with these Rules.

• II. The Company shall furnish the attending shareholders with an attendance book to sign, or the attending shareholders may hand in a sign-in card in lieu of signing in. The number of shares represented by the shareholders present at the meeting shall be calculated based on the attendance book or the submitted sign-in cards.

• III. The attendance and voting at a shareholders’ meeting shall be calculated based on the number of shares.

• IV. The venue for a shareholders’ meeting shall be the premises of the Company, or a place that is easily accessible to shareholders and is suitable for a shareholders’ meeting. The meeting shall begin no earlier than 9 a.m. and no later than 3 p.m.

• V. If a shareholders’ meeting is convened by the Board of Directors, the meeting shall be chaired by the Chairman of the Board. When the chairperson of the Board is on leave or for any reason unable to exercise the powers of the chairperson, the vice chairperson shall act in place of the chairperson. If there is no vice chairperson or the vice chairperson is also on leave or for any reason unable to exercise the powers of the vice chairperson, the chairperson shall appoint one of the managing directors to act as the chair, or, if there are no managing directors, one of the directors shall be appointed to act as the chair. Where the chairperson does not make such a designation, the managing directors or the directors shall select from among themselves one person to serve as chair. If a shareholders’ meeting is convened by a party with the power to convene but other than the Board of Directors, the convening party shall chair the meeting.

• VI. The Company may appoint its attorneys, certified public accountants, or other related persons retained by it to attend a shareholders’ meeting in a non-voting capacity. Staff handling administrative affairs of a shareholders’ meeting shall wear identification cards or arm bands.

• VII. The Company shall record with an audio or video tape the whole proceedings of the shareholders’ meeting, and said video or audio tape shall be kept for at least one year.

• VIII. The chair shall call the meeting to order at the appointed meeting time. However, when the attending shareholders do not represent a majority of the total number of issued shares, the chair may announce a postponement, provided that no more than two such postponements, for a combined total of no more than one hour, may be made. If the quorum is not met after two postponements, but the attending shareholders represent one third or more of the total number of the issued shares, a tentative resolution may be adopted pursuant to Paragraph 1, Article 175 of the Company Act. If the attending shareholders represent a majority of the total number of issued shares before the end of the meeting, the chair may resubmit the tentative resolution for a vote at the shareholders’ meeting pursuant to Article 174 of the Company Act.

• IX. If a shareholders’ meeting is convened by the Chairman of the Board of Directors, the meeting agenda shall be set by the Board of Directors and the meeting shall proceed in the order set by the agenda, which may not be changed without a resolution of the shareholders’ meeting. The provisions of the preceding paragraph apply mutatis mutandis to a shareholders’ meeting convened by a party with the power to convene but other than the Board of Directors. The chair may not declare the meeting adjourned before the completion of deliberation on the meeting agenda (including extraordinary motions) as set forth in the preceding two paragraphs, except by a resolution of the shareholders’ meeting. After the meeting is adjourned, no shareholders shall elect a chair and continue the meeting at the same or a different place. However, in case the chair declares the meeting adjourned in violation of the Rules of Procedure, the shareholders present at the meeting may elect a chair with a majority of the voting rights and proceed with the meeting

34

• continuously.

• X. Before speaking, an attending shareholder must specify on a speaker’s slip the subject of the speech, his/her/their shareholder account number (or attendance card number), and account name. The order in which shareholders speak will be set by the chair. A shareholder in attendance who has submitted a speaker’s slip but does not actually speak shall be deemed to have not spoken. When the content of the speech does not correspond to the subject given on the speaker’s slip, the spoken content shall prevail. When an attending shareholder is speaking, the other shareholders may not speak or interrupt unless they have sought and obtained the consent of the chair and the shareholder who has the floor. Any unrestrained action shall be discouraged by the chair.

• XI. Except with the consent of the chair, a shareholder may not speak more than twice on the same proposal, and a single speech may not exceed 5 minutes. If a shareholder speaks in contravention of the requirements in the previous sentence or beyond the scope of the subject, the chair may terminate his/her speech.

• XII. When a juristic person is appointed to attend the shareholders’ meeting as a proxy, it may designate only one person to represent it in the meeting. When a juristic person shareholder appoints two or more representatives to attend a shareholders’ meeting, only one of the representatives so appointed may speak on the same proposal.

• XIII. After an attending shareholder has spoken, the chair may respond in person or direct relevant personnel to respond.

• XIV. When the chair is of the opinion that a proposal has been discussed sufficiently to put it to a vote, the chair may announce the discussion closed and call for a vote.

• XV. Vote monitoring and counting personnel for the voting on a proposal shall be appointed by the chair, provided that all monitoring personnel shall be shareholders of the Company. The results of the voting shall be reported on the spot and recorded in the meeting minutes.

• XVI. When a meeting is in progress, the chair may announce a break in consideration of the schedule.

• XVII. Except as otherwise provided in the Company Act and in the Articles of Incorporation, the approval of a proposal shall require an affirmative vote of a majority of the voting rights represented by the attending shareholders. The chair may ask for objections during the voting. A proposal shall be deemed adopted if there are no objections and the adoption shall have the same effect as voting.

• XVIII.When there is an amendment or an alternative to a proposal, the chair shall present the amended or alternative proposal along with the original proposal and decide the order in which they will be put to a vote. When any one among them is passed, the other proposals will then be deemed rejected, and no further voting shall be required.

• XIX. The chair may direct the proctors or security personnel to help maintain order at the meeting place. When the proctors (or the security personnel) help maintain order at the meeting place, they shall wear armbands bearing the word “Proctor.”

• XX. These Rules shall take effect after having been submitted to and approved by a shareholders’ meeting. Subsequent amendments thereto shall be effected in the same manner.

35

III. Shareholding of Directors

Rexon Industrial Corp., Ltd.

Shareholding of Directors

Appendix 3

Base date: April 1, 2024

Title	Name	Dated Elected	Shareholding up election	Shareholding up election	Shareholding up election	Current Shareholding	Current Shareholding	Current Shareholding	Remarks
			Type	Number of shares	% In shares issued then	Type	Number of shares	% In shares issued then
President	Wang Kuan- Hsiang	2023.05.30	Ordinary share	3,750,178	2.07%	Ordinary share	1,950,178	1.07%
Director	Kun Forever Co., Ltd./Rep.: Wang Kuan- Chuan	2023.05.30	Ordinary share	20,196,000	11.13%	Ordinary share	26,369,472	14.53%
Director	Huang Ching-Hsiang	2023.05.30	Ordinary share	852,094	0.47%	Ordinary share	800,094	0.44%
Director	Chen Chun- Wei	2023.05.30	Ordinary share	592,350	0.33%	Ordinary share	592,350	0.33%
Director	Kuo Pu-Chao	2023.05.30	Ordinary share	10,000	0.01%	Ordinary share	170,000	0.09%
Director	Yang Ching- Chi	2023.05.30	Ordinary share	0	0.00%	Ordinary share	0	0.00%
Independent director	Lee Cherng	2023.05.30	Ordinary share	0	0.00%	Ordinary share	0	0.00%
Independent director	Wu Chwan- Chyuan	2023.05.30	Ordinary share	0	0.00%	Ordinary share	0	0.00%
Independent director	Chen Li- Tsung	2023.05.30	Ordinary share	0	0.00%	Ordinary share	0	0.00%
Total			25,400,622			29,882,094

Total number of shares issued as of May 30, 2023: 181,473,500 shares

Total number of shares issued as of April 1, 2024: 181,473,500 shares

Note:

All the directors of the Company shall hold 10,888,410 shares as required by law. They held 29,882,094 shares up to April 01, 2024.

The Company has set up the Audit Committee and, thus, the shareholding of the supervisors required by law is not applicable.

◎Shares held by the Independent directors are not included in the number of shares held by directors.

36