REXON — AGM Information 2024

Jun 4, 2024

Stock Code: 1515

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

Shareholders

Integrity‧Stability‧Growth

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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

Rexon Industrial Corp., Ltd. Meeting Minutes 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) Total outstanding Rexon shares: 181,473,500 shares

Total shares represented by shareholders present in person or by proxy: 104,452,211 shares Percentage of shares held by shareholders present in person or by proxy: 57.55%

Present: Chairman / Wang Kuan-Hsiang, Director/ Kun Forever Co., Ltd. Representative: Wang KuanChuan (Sustainable Development Committee convener), Director/ Huang Ching-Hsiang, Director/ Chen Chun-Wei, Director/ Kuo Pu-Chao, Director/ Yang Ching-Chi, Independent director/ Lee Cherng, (Compensation Committee convener), Independent director/ Chen Li-Tsung, / KPMG CPA/ Lawyer Wei Chairman: Wang Kuan-Hsiang

Secretary: He Hsiu-Yuan

I. Call to Order: The aggregate shareholding of the shareholders present in person or by proxy constituted a quorum. The Chairman called the meeting to order.

II. Chairperson Remarks (omitted)

III. Management Presentation

• (I). 2023 Business report. (see Attachment)

• (II). Audit Committee’s review report on the 2023 financial statements. (see Attachment) (III). Report on distribution of the remuneration to employees and directors in 2023: 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.

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

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.

IV. Matters to be Ratified

• (I). Ratification of 2023 financial statements. (Proposed by the Board of Directors) Explanatory Notes:

• (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.

Voting Results: Shares represented at the time of voting: 104,452,211 votes

Voting Results*	Voting Results*	% of the total represented share present
Votes in favor	91,675,429 votes	87.76%
Votes against	96,857 votes	0.09%
Votes invalid	0 votes	0.00%
Votes abstained	12,679,925 votes	12.13%

RESOLVED, that the above proposal was hereby approved as proposed.

• (II). Ratification of earnings distribution for 2023.(Proposed by the Board of Directors) Explanatory Notes:

• (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.

Voting Results: Shares represented at the time of voting: 104,452,211 votes

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Voting Results*	Voting Results*	% of the total represented sharepresent
Votesin favor:	91,751,434votes	87.84%
Votes against:	92,849 votes	0.08%
Votes invalid:	0 votes	0.00%
Votes abstained:	12,607,928 votes	12.07%

RESOLVED, that the above proposal was hereby approved as proposed.

V. Discussions

(I). Amendment of the “Articles of Incorporation” of the Company. (Proposed by the Board of Directors)

Explanatory Notes:

• (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.

Voting Results: Shares represented at the time of voting: 104,452,211 votes

Voting Results*	Voting Results*	% of the total represented sharepresent
Votes in favor:	91,756,417 votes	87.84%
Votes against:	84,864 votes	0.08%
Votesinvalid:	0 votes	0.00%
Votes abstained:	12,610,930 votes	12.07%

RESOLVED, that the above proposal was hereby approved as proposed.

VI. Extraordinary Motions: None

Questions from shareholder (Account Number:111313):

• (1) What is the largest client proportion of fitness equipment revenue?

• (2) What is the future forecast about fitness equipment revenue?

• (3) Does the company have any plans for automatic equipment?

• (4) Does the company consider moving the power tool factory from China back to Taiwan or other countries?

• (5) Besides the largest fitness equipment clients, is it possible to establish own-brand or strive for other fitness equipment clients ?

General Manager reply:

• (1) The proportion of the largest client in fitness equipment revenue is about 70%.

• (2) Fitness equipment accounts for the largest proportion of our revenue, and we continue to strive for the growth of other major clients.

• (3) The factory outline will be planned to satisfy demand for our clients and products. Some products are manufactured in automation system. In the future, automation planning will be carried out in line with the needs of power tool clients.

• (4) This is a global issue. We will evaluate Taiwan and Southeast Asia in response to our client needs.

• (5) The company mainly focuses on OEM and ODM, and has no plans to establish ownbrand currently. We will continue to serve clients in power tool, fitness equipment and new businesses through OEM and ODM.

VII. Adjournment: May 30, 2024 (Thu), at 9:21am .

The meeting minutes of shareholders only records main point of the meeting, and state main point of Shareholders’ statements, the meeting content, procedures and shareholder statements shall still be subjected to the audio and video records of the meeting.

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Attachment 1

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 quickchanging 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.

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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 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

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(II). Financial Reports

1. Please refer to pages 7-21 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.

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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.

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’ 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.

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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

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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)

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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)

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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)

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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)

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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.

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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.

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’ 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.

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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

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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)

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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)

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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)

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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)

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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

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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

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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 Article 2:The Company is Bsiness items is added. businesses: (Omitted) engaged in the following 50.CC01060 Wired Communication Equipment and businesses: (Omitted) Apparatus Manufacturing 50.ZZ99999 All business 51.CC01070 Wireless Communication Mechanical activities that are not Equipment Manufacturing prohibited or restricted by 52.CC01080Electronics Components Manufacturing law, except those that are 53.CD01060 Aircraft and Parts Manufacturing subject to special approval. 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 29: (Omitted) Article 29: (Omitted) An amendment date is The 36th amendment was on May 30, 2024. added.

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