Stock Code: 1515
Annual Report inquiry website: http://mops.twse.com.tw
Company: http://www.rexon.net

Rexon Industrial Corp., Ltd.

2025 Annual Report

Integrity Stability Growth

Creative · Effective
REXON®
REXON INDUSTRIAL CORP.,LTD

Printed on March 30, 2026

I. Spokesperson and Deputy Spokesperson of the Company:

Spokesperson: Kuo Pu-Chao

Title: Vice President

Tel.: (04)2491-4141 Ext. 6501

Email: [email protected]

Deputy Spokesperson: Hsu Sen-Yuan

Title: Director

Tel.: (04)2491-4141 Ext. 6777

Email: [email protected]

II. Address and Telephone Number of the Head Office, Branch and Factory

Address of head office: No. 261, Renhua Rd., Dali Dist., Taichung City

Tel.: (04)24914141

Branch: None

Address of factory: No. 261, Renhua Rd., Dali Dist., Taichung City

Tel.: (04)24914141

III. Stock Transfer Agency:

Name: Transfer Agency Department, CTBC Bank Co., Ltd.

Address: 5F., No. 83, Sec. 1, Chongqing S. Rd., ZhongzhengDist., Taipei City 100

Website: https://www.ctbcbank.com

Tel.: (02) 6636-5566

IV. CPAs for the Financial Reports in the Most Recent Year

Name of CPA: Chen Cheng-Hsueh, Chang Tzu-Hsin

Name of CPA firm: KPMG Taiwan

Address: 68F., No. 7, Sec. 5, Xinyi Rd., Taipei City 11049 (Taipei 101)

Website: http://www.kpmg.com.tw/

Tel.: (02) 8101-6666

V. Names of the Exchanges Where Our Securities Are Traded Offshore, and the Methods with

Which the Information of the Offshore Securities Is Accessed: None

VI. Company Website:

Company: http://www.rexon.net

One. Letter to Shareholders ... 1
Two. Corporate Governance Report ... 3
I. Information on directors, supervisors, President, Vice President, Director, and department and branch heads ... 3
II. Remuneration to directors, supervisors, President and Vice President in the most recent year ... 12
III. Status of corporate governance ... 16
IV. Information on CPA professional fees ... 50
V. Information on change of CPAs ... 50
VI. CPA firm or its affiliates at which the Company’s President, General Manager, or managerial officers responsible for financial or accounting matters ever served as an employee in the most recent year ... 51
VII. Details of equity transferred or pledged by directors, supervisors, managerial officers, or shareholders with more than 10% ownership interest in the most recent year up to the publication date of the annual report. Where the counterpart involved in the transfer or pledge of equity is a related party, the name of such counterpart, his/her relations with the Company, directors, supervisors, managerial officers, or shareholders with more than 10% ownership interest, and the number of shares acquired or pledged must be disclosed ... 52
VIII. Relationship information, if any one of the 10 largest shareholders is a related party, or is the spouse or a relative within the second degree of kinship with another shareholder: ... 53
IX. The total number of shares and total equity stake held in the same investee by the Company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the Company ... 53

Three. Offering of Securities ... 54
I. Capital and share ... 54
II. Issuance of corporate bonds ... 57
III. Issuance of preferred shares ... 58
IV. Issuance of overseas depositary receipts ... 58
V. Employee share subscription warrants ... 58
VI. Issuance of new shares in connection with mergers or acquisitions or with

acquisitions of shares of other companies 58

VII. Implementation of the Company’s capital utilization plans 59

Four. Operational Overview 61

I. Business contents 61
II. Overview of market and production/sales 67
III. Employees 76
IV. Information on environmental protection expenses 76
V. Labor-management relationship 78
VI. Cyber security management 85
VII. Important contracts: 86

Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment 87

I. Financial status 87
II. Financial performance 87
III. Cash flow 88
IV. The Impact of major capital expenditures in the most recent year on finance and business 88
V. The reinvestment policy for the most recent year, the main reasons for the profit/loss generated thereby, the improvement plan, and the investment plan for the coming year 88
VI. Risk management and assessment 89
VII. Other important matters 91

Six. Special Items 92

I. Information on affiliated companies 92
II. Private placement of securities in the most recent year up to the publication date of the annual report 94
III. Other necessary supplementary explanations 94

One. Letter to Shareholders

Dear shareholders,

In 2025, the global economy faced headwinds from geopolitical tensions, international trade frictions, and shifts in monetary policy, leading to a slowdown in overall growth. Market demand remained weak, inventory destocking progressed slowly, and the operating environment continued to present significant challenges.

The Company remained committed to a steady and disciplined management approach, focusing on its core strategies while maintaining strict cost controls. By leveraging its operational flexibility and solid business foundation, the Company sustained stable operations in an uncertain environment and continued to demonstrate its core competitive strengths.

I. Business results in 2025

(I). Implementation status of the business plan

The consolidated operating revenue in 2025 was NT$5,419,291 thousand with a decrease of NT$679,995 thousand (11.15%) in comparison with the amount of NT$6,099,286 thousand in 2024. The consolidated net profit after tax in 2025 was NT$173,956 thousand with earnings per share of about NT$0.97.

(II). Implementation status of budgets

Since we did not make 2025 publication of financial forecasts, no budget implementation status needs to be disclosed.

(III). Analysis of financial expenditure and profitability

Item		2024	2025
Financial structure (%)	Debt to assets ratio %	46.18	51.79
Solvency (%)	Current ratio %	109.15	110.68
	Quick ratio %	93.29	95.48
Profitability (%)	Return on assets (%)	4.06	2.48
	Return on equity (%)	8.18	4.37
	Earnings per share (NTD) (current period)	1.76	0.97

(IV) R&D status

In the field of power tools, the Company continues to invest in technological innovation and leverage its patent portfolio, aiming to deliver products that exceed customer expectations. At the same time, through strategic alliances in branding and retail channels, combined with flexible utilization of multiple production locations, the Company achieves the benefits of a diversified product portfolio.

In the field of fitness equipment, the Company has accelerated the pace of new product development and expanded its product range to respond to fast-changing and diversified customer needs, fostering growth together with its customers. Meanwhile, the Company continues to pursue high-quality standards to ensure product performance and customer satisfaction.

In new business ventures, the Company, leveraging its core technologies, actively responds

One. Letter to Shareholders

to industry development trends and seizes market opportunities. It is gradually expanding into new business product areas to strengthen long-term growth momentum.

II. Summary of the 2026 Business plan

(I). Operating guidelines and important policies

(A). With sustainable business development as the core objective, the Company seeks to balance the interests of shareholders, customers, employees, and other stakeholders, creating the greatest overall value.

(B). Leveraging its leading electromechanical integration technologies, the Company continues to provide high-quality products and professional services to brand customers, thereby strengthening long-term cooperative relationships.

(C). Guided by a spirit of thorough investigation and continuous improvement, the Company promotes lean manufacturing and lean management to enhance operational efficiency and competitiveness, with the ultimate goal of sustainable business development and maximizing overall benefits for all corporate stakeholders.

(II). Business expectations and critical production/marketing policies

Looking ahead to 2026, the global economy and supply-demand markets remain highly uncertain. The Company's management team will continue to uphold the corporate culture of 'Integrity, Stability, and Growth.' By comprehensively promoting lean management and deepening technological innovation, the Company aims to cultivate differentiated competitive advantages, respond to and meet customer needs, and establish win-win partnerships with clients, thereby pursuing high-quality corporate growth and sustainable business development.

(III). Our development strategies will be affected by the external competitive environment, regulatory environment and overall business environment.

The Company adheres to the legacy of the 'More Than Better' centering on its vision of leveraging leading electromechanical integration technologies and providing comprehensive services to brand customers. It continues to strengthen its core competitive advantages, including 'technology leadership,' 'manufacturing excellence,' 'quality first,' and 'customer trust,' striving to deliver products and services that meet customer needs and achieve stable revenue and profit growth.

The management team and all employees embrace the spirit of continuous improvement—'there is no best, only better'—constantly reinforcing the Company's market-leading position and enhancing differentiation from competitors, while pursuing high-quality corporate growth and sustainable business development. At the same time, the Company actively responds to changes in the competitive, regulatory, and overall business environment, prudently manages and effectively controls operational risks, and ensures the Company's long-term stable development.

Finally, we sincerely extend our appreciation to all of our shareholders for your support. Please continue to offer your encouragement and comments to our management team.

May we wish you all

Good Health and Good Luck

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

Two. Corporate Governance Report

I. Information on directors, supervisors, President, Vice President, Director, and department and branch heads

(I). Information on directors and supervisors

Information on directors and supervisors (I)

March 22, 2026

Title	Nation ally or place of region a/see	Name	Gender Age	Date elected (appointed)	Term of office	Date first elected	Shares held when elected		Current shareholding		Current shares held by spouse or minor children		Shares held in the names of others		Education and experience	Other managers, directors or supervisors in a spousal relationship or within the second degree of identity
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio		Title	Name	Relationship
Chairman	R.O.C.	Wang Kuan-Hsiang	Male 41-50	2023.05.30	3 years	2002.06.26	3,750,178	2.07%	1,986,178	1.09%	0	0.00%	7,600,345	4.19%	Master, National Chung Hong University
Recon Industrial Corp., Ltd., General Manager	Recon Industrial Corp., Ltd., Chairman
Procur Text Specialists Inc., PTO, Director
Gold Tech Group Ltd., Director
Tangxiang Recon Industrial Co., Ltd., Director
TASOC Materials Corp., Independent Director	Director	Wang Kuan-Chuan	brother and sister	None
Director	R.O.C.	Kim Forever Co., Ltd.	N/A	2023.05.30	3 years	2021.08.26	20,196,000	11.13%	26,369,472	14.53%	0	0.00%	0	0.00%
		Representative: Wang Kuan-Chuan	Female 41-50	2023.05.30	3 years	2023.05.30			2,302,550	1.27%	1,338,243	0.74%	3,109,782	1.71%	Department of Public Finance, Feng Chia University
Middlesex University, Master of Money banking and Finance
Recon Industrial Corp., Ltd., Sales Senior Specialist
KPMG Taiwan	Recon Industrial Corp., Ltd., Special Assistant
Procur Text Specialists Inc., Director	President	Wang Kuan-Hsiang	brother and sister	None
Director	R.O.C.	Huang Chin-Hsiang	Male 51-60	2023.05.30	3 years	2017.06.13	852,094	0.47%	800,094	0.44%	70,000	0.04%	0	0.00%	Sha De Institute of Technology
Recon Industrial Corp., Ltd., Vice President	Recon Industrial Corp., Ltd., Vice President
Tangxiang Recon Industrial Co., Ltd, Chairman
Gold Tech Group Ltd., Director
Fine Chun Co., Ltd., Director	None	None	None	None
Director	R.O.C.	Chen Chun-Wei	Male 41-50	2023.05.30	3 years	2023.05.30	592,350	0.33%	592,350	0.33%	379,943	0.21%	0	0.00%	Master, Department of Electrical Engineering, Taising University
Tangxiang Recon Industrial Co., Ltd., Electrical Department, Manager
Recon Technology Corp., Ltd., Special Assistant	Tangxiang Recon Industrial Co., Ltd., Chairman
Gold Tech Group Ltd., Director	None	None	None	None
Director	R.O.C.	Kun Pu-Chao	Male 41-50	2023.05.30	3 years	2017.06.13	10,000	0.01%	107,000	0.06%	6,000	0.00%	0	0.00%	Master of Business Administration, Durham University, UK
Recon Industrial Corp., Ltd., Director	Recon Industrial Corp., Ltd., Vice President
Recon Technology Corp., Ltd., Director
Hongqian Investment Co., Ltd., Director	None	None	None	None
Director	R.O.C.	Yang Ching-Chi	Male 51-60	2023.05.30	3 years	2023.05.30	0	0.00%	0	0.00%	0	0.00%	0	0.00%	California State University, Fallavien, BS in Business Administration
Sunspring Metal Corporation, CEO	Sunspring Metal Corporation, CEO, Chairman
Bureau Metal (Zhongqing) Industrial Ltd., Executive Director
Sunspring Metal (Zhuhui) Ltd., Executive Director
Heyi Investment Co., Ltd., Chairman
Sunspring Automation Corporation, Chairman
Sunspring Holding Corp., Director
Sunspring America Inc., Director	None	None	None	None

Two. Corporate Governance Report

Title	Nation ality or place of opi- uration	Name	Gender Age	Date elected (appointed)	Term of office	Date first elected	Shares held when elected		Current shareholding		Current shares held by spouse or minor children		Shares held in the names of others		Education and experience	Other managers, directors or supervisors is a spousal relationship or within the second degree of kinship
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio		Title	Name	Relationship
Independent director	R.O.C.	Lee Cheung	Male 61-70	2023.05.30	3 years	2020.06.18	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Director of Laws, Tulane University USA
Associate Professor, Department of Law, Tanglai University
Lawyer, Federal and State of New York, USA	Adjunct EMBA Associate Professor, Tanglai University
Tupkey Corporation, Independent Director
Harum Biochemical Technology Co., Ltd Independent Director	None	None	None	None
Independent director	R.O.C.	Wu Chwan-Chyuan	Male 71-80	2023.05.30	3 years	2020.06.18	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Department and Graduate Institute of Accounting, University of Oklahoma, USA
RPMS Taiwan, Hosted by Carmel District CPA	Taiwan Steel Union Co., Ltd., Independent Director	None	None	None	None
Independent director	R.O.C.	Chen Li-Tsung	Male 41-50	2023.05.30	3 years	2023.05.30	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Ph.D. of organizational behavior, The Hong Kong Polytechnic University
Department of Economics, National Taiwan University
Diamond Group, CEO	Diamond Group, CEO
Intramit Inc. Co-founder, Director
Taishui Dreamers, Executive Director
Dreamers Academy, Chairman
National Taiwan University, Adjunct Assistant Professor, College of Management	None	None	None	None

Note 1: If the President and General manager, or any other equivalents (senior management), are the same person, or spouse or relative within first degree of kinship with each other, the information about the reason, reasonableness, necessity and corresponding measures (e.g. increasing the number of independent directors, and having a majority of directors that do not work as employees or managers of the Company, etc.) shall be provided: None.

Two. Corporate Governance Report

Table 1: Major shareholders of corporate shareholders: March 22, 2026

Name of corporate shareholder (Note 1)	Major shareholders of corporate shareholders (Note 2)
Kun Forever Co., Ltd.	Chen, Li-Mei (39.81%), Wang Kuan-Hsiang (7.72%), Wang Kuan-Chuan (11.04%), Wang Yu-Chen (4.55%), Wang Yu-Hsi (4.55%), Lin Lu-Cheng (4.18%), Lin Lu-Yen (4.18%), Lin,Chia-Jung (12.06%), Lin,Yi-Chien (6.81%)

Note 1: If directors and supervisors serve as representatives of corporate shareholders, the names of the corporate shareholders must be provided.
Note 2: Name the major shareholders (the top 10 owners) of corporate shareholders and their shareholding percentage. Table 2 below is applicable if any of the major shareholders is an institution.
Note 3: If the legal person shareholder is not a company organization, the shareholder name and shareholding that should be disclosed above are the names of the investors or donors (you can refer to the Judicial Yuan announcement for inquiries) and their investment or donations. If the person has passed away, the note "deceased" shall be added.

Table 2: Major shareholders in Table 1 if they are institutions March 22, 2026

Name of institution (Note 1)	Major shareholders of institution (Note 2)
N/A	N/A
N/A	N/A

Note 1: If any of the major shareholders listed in Table 1 is an institution, the name of the institution must be provided.
Note 2: Name the major shareholders (the top 10 owners) of the institution and their shareholding percentage.
Note 3: If the legal person shareholder is not a company organization, the shareholder name and shareholding that should be disclosed above are the names of the investors or donors (you can refer to the Judicial Yuan announcement for inquiries) and their investment or donations. If the person has passed away, the note "deceased" shall be added.

Two. Corporate Governance Report

Information on directors and supervisors (II):

(1). Disclosure of information on the professional qualification of directors and supervisors and the independence of independent directors
March 22, 2026

Criteria Name	Professional qualifications and experience (Note 1)	Independence (Note 2)	Number of public companies where the person concurrently acts as an independent director
Wang Kuan-Hsiang	Business and other experienced that the Company needs	N/A	None
Representative of Kun Forever Co., Ltd.: Wang Kuan-Chuan	Business and other experienced that the Company needs	N/A	None
Huang Chin-Hsiang	Business and other experienced that the Company needs	N/A	None
Kuo Pu-Chao	Business and other experienced that the Company needs	N/A	None
Chen Chun-Wei	Business and other experienced that the Company needs	N/A	None
Yang Ching-Chi	Business and other experienced that the Company needs	N/A	None
Lee Cherng	An instructor or higher up in a department of business, law, or other academic department required for the business of the Company in a public or private junior college, college, or university, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	2
Wu Chwan-Chyuan	CPA or other professional or technical specialist who has passed a national examination and has been awarded a certificate in a professional capacity that is necessary for the business of the Company, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	1
Chen Li-Tsung	An instructor or higher up in a department of business, law, or other academic department required for the business of the Company in a public or private junior college, college, or university, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
2. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	None

Note 1: Describe the professional qualifications and experience of respective directors and supervisors. In case of Audit Committee members specialized in accounting or finance, describe their accounting or finance background and work experience. Whether there are any circumstances under Article 30 of the Company Act shall be described additionally.

Note 2: In case of independent directors, the compliance with independence requirements shall be described, including but not limited to whether the independent director and his/her spouse or relatives within the second degree of kinship are the directors, supervisors or employees of the Company or any of its affiliates; whether the independent director or his spouse or relative within the second degree of kinship holds any stocks of the Company on his/her own or in the name of others; whether the independent director is a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies); and whether the independent director received compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.

Note 3: As for the disclosure method, refer to the best practice references on the website of the Corporate Governance Center of TWSE.

Two. Corporate Governance Report

Criteria Name	More than 5 years of work experience and following professional qualifications			Compliance with independence requirements												Number of public companies where the person concurrently acts as an independent director
	An instructor or higher up in a department of business, law, finance, accounting, or other academic department required for the business of the Company in a public or private junior college, college, or university	A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and has been awarded a certificate in a professional capacity that is necessary for the business of the Company.	Work experience in business, law, finance or accounting, or other areas required for the business of the Company	1	2	3	4	5	6	7	8	9	10	11	12
Wang Kuan-Hsiang			✓				✓	✓	✓	✓	✓	✓		✓	✓	1
Wang Kuan-Chuan			✓				✓	✓	✓	✓	✓	✓		✓	✓	0
Huang Chin-Hsiang			✓			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Chen Chun-Wei			✓			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Kuo Pu-Chao			✓			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Yang Ching-Chi			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Lee Cherng	✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	2
Wu Chwan-Chyuan		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	1
Chen Li-Tsung	✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0

Note 1: Place a “✓” in the box if the director or supervisor met the following conditions at any time during active duty and two years prior to the date elected.
(1) Not a director or supervisor of the Company or our affiliates.
(2) Not a director or supervisor of the Company or our affiliates (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(3) Not a natural-person shareholder who holds shares, together with those held by his/her spouse, minor children, or held by the person under others' names, in an aggregate of 1% or more of the total number of issued shares of the Company, or ranking among the top 10 natural-person shareholders in holdings.
(4) Not a spouse, or relative within the second degree of kinship, or lineal relative within the third degree of kinship, of an executive officer falling under Point (1) above, or of any of the persons in Point (2) or (3) above.
(5) Not a director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the total number of issued shares of the Company, or ranks as one of its top five shareholders, or designates its representative to serve as a director or supervisor of the Company under Article 27, paragraph 1 or 2 of the Company Act. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(6) In case a majority of the Company's director seats or voting shares and those of any other company are controlled by the same person, not a director, supervisor, or employee of that other company. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)

Two. Corporate Governance Report

(7) In case the President, General manager, or person holding an equivalent position of the Company and a person in any of those positions at another company or institution are the same person or are spouses, not a director, supervisor or employee of that other company or institution. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)

(8) Not a director, supervisor, or managerial officer, or a shareholder directly holding 5% or more of the shares, of any specific company or institution that has a business or financial relationship with the Company. (The same does not apply, however, in cases where the specific company or institution holds 20% or more and not more than 50% of the total number of the Company's issued shares and is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)

(9) Not a professional individual who, or an owner, partner, director, supervisor, or managerial officer of a sole proprietorship, partnership, company, or institution that, provides auditing services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the most recent two years with an accumulated service compensation of NT$500,000 or less, or a spouse thereof; provided that this restriction does not apply to a member of the Compensation Committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Securities and Exchange Act or to the Business Mergers and Acquisitions Act or related laws or regulations.

(10) Not a spouse nor a relative within the second degree of kinship of another director.

(11) None of the circumstances under Article 30 of the Company.

(12) Not elected in the capacity of a government agency, a juristic person, or a representative thereof, as provided in Article 27 of the Company Act; Not a director or supervisor of the Company or our affiliates.

Two. Corporate Governance Report

(2). Diversity and independence of the Board of Directors

A. Diversity of the Board of Directors: Describe the Board’s diversity policy, objectives and achievement status. The diversity policy includes but is not limited the director election criteria, the professional qualifications and experience that the Board of Directors must have, and the formation and proportion in respect of gender, age, nationality, and culture. The specific objectives and their achievement status with respect to these policies shall also be described.

a. To enhance the governance of the Company and promote the sound development of the Board’s formation and structure, Article 20 “Diversity Policy of Board Members” in “Corporate Governance Best Practice Principles” that the Company established in 2017 states that diversity shall be taken into account for the formation of the Board of Directors and an appropriate policy of diversity shall be devised based on the operations, type of business and development requirements, such as basic requirements and values (e.g. gender, age, nationality, and culture), professional background (e.g., law, accounting, industry, finance, marketing, technology), professional skills, and industry experience.

b. The current Board of Directors is composed of 9 directors, including 6 directors and 3 independent directors. The Board members have extensive experience and professionalism in the fields of law, business, and management. All the directors are the citizens of the Republic of China. As for their ages, 5 directors fall within the range from 41 to 50, 2 directors within the range of 51 to 60, 1 within the range of 61 to 70, 1 within the range of 71 to 80. The equity of gender in the formation of the Board of Directors is another concern of the Company. The goal of the female director ratio is set to more than 10%. Currently, one of the nine directors is female at a ratio of 11%. We will strive to increase the number of female directors in the future to achieve this goal. The Company has 3 independent directors. One of them have a term of office for less than 3 years and another two have a term of office for 5 years. None of the independent directors have served for more than three consecutive terms of service.

c. The diversity of the Board members depends on the continuous implementation of the Company’s “Corporate Governance Best Practice Principles”. We will stay abreast of the latest development to adopt more policies for the diversity of the Board members depending on the operations of the Board of Directors and the development requirements of the Company to ensure that the Board members have the necessary knowledge, skill, and experience to perform their duties.

Two. Corporate Governance Report

Table 1: The implementation status of the diversity policy on the composition of the Board members

Name	Nationality	Gender	Employee status	Age				Term of office for independent directors		The ability to make judgments about operations	Accounting and financial analysis ability	Business management ability	Crisis management ability	Knowledge of the industry	International market perspective	Leadership ability	Decision-making ability
				41-50	51-60	61-70	71-80	Less than 3 years	3 to 9 years
Wang Kuan-Hsiang	R.O.C.	Male	V	V						V	V	V	V	V	V	V	V
Wang Kuan-Chuan	R.O.C.	Female	V	V						V	V	V	V	V	V	V	V
Huang Chin-Hsiang	R.O.C.	Male	V		V					V	V	V	V	V	V	V	V
Chen Chun-Wei	R.O.C.	Male		V						V	V	V	V	V	V	V	V
Kuo Pu-Chao	R.O.C.	Male	V	V						V	V	V	V	V	V	V	V
Yang Ching-Chi	R.O.C.	Male			V					V	V	V	V	V	V	V	V
Lee Cherng	R.O.C.	Male				V			V	V	V	V	V	V	V	V	V
Wu Chwan-Chyuan	R.O.C.	Male					V		V	V	V	V	V	V	V	V	V
Chen Li-Tsung	R.O.C.	Male		V				V		V	V	V	V	V	V	V	V

B. Independence of the Board of Directors: Describe the number and proportion of the independent directors and their independence; describe whether the circumstances set forth in Paragraphs 3 and 4, Article 26-3 of the Securities and Exchange Act do not apply and give reasons, including description of the spousal relationship or the relationship within the second degree of kinship among directors, supervisors or between any director and supervisor.

a. The current Board of Directors is comprised of 9 directors including 3 independent directors (33%). They have the independence needed for execution of their duties. The circumstances set forth in Paragraphs 3 and 4, Article 26-3 of the Securities and Exchange Act do not apply to the 3 independent directors, including description of the spousal relationship or the relationship within the second degree of kinship among directors, supervisors or between any director and supervisor.

Two. Corporate Governance Report

(II). Information on President, Vice President, Director, and department and branch heads

March 22, 2026

Title	Nationality	Name	Gender	Date elected (appointed)	Shareholding		Shares held by spouse or minor children		Shares held in the names of others		Education and experience	Concurrent posts in other companies	Managerial officer in a spousal relationship or within the second degree of kinship			Remarks
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Title	Name	Relations hip
General Manager	R.O.C.	Lo Cheng-Chou	Male	2022.04.01	84,145	0.05%	0	0.00%	0	0.00%	Department and Graduate Institute of Business Administration, Chayyung University of Technology / Recon Industrial Corp., Ltd., Guantou VP	Gold Tech Group Ltd., Director	None	None	None	None
Executive Vice President	Malaysia	Pang Mang-Wei	Male	2025.01.01
2021.06.01	66,000	0.04%	0	0.00%	0	0.00%	National Chung Hong University / Recon Industrial Corp., Ltd., Marketing & Products Dept. VP, Sales And Technical Division VP	Power Tool Specialists Inc, Chairman	None	None	None	None
Vice President	R.O.C.	Cheng Mei-Ling	Female	2021.01.01	16,000	0.01%	0	0.00%	0	0.00%	Chonkan Technology University / Recon Industrial Corp., Ltd., Technical Division VP	Tongxiang Recon Industrial Co., Ltd., Director	None	None	None	None
Vice President	R.O.C.	George Ku	Male	2021.06.01	2,000	0.00%	0	0.00%	0	0.00%	EMBA, National Chung Hong University / Recon Industrial Corp., Ltd., Technical Division VP	None	None	None	None	None
Vice President Accounting Manager Corporate Governance Officer	R.O.C.	He Hsiu-Yuan	Female	2021.06.01
2018.11.08
2023.05.09	31,448	0.02%	0	0.00%	0	0.00%	EMBA, National Chung Hong University / Recon Industrial Corp., Ltd., General Administration Division and HR Division VP	Gold Tech Group Ltd., Director
Tongxiang Recon Industrial Co., Ltd., Supervisor
Recon Technology Corp., Ltd., Director	None	None	None	None
Vice President	R.O.C.	Huang Chin-Hsiang	Male	2021.06.01	800,094	0.44%	70,000	0.04%	0	0.00%	Health Institute of Technology / Recon Industrial Corp., Ltd., General Manager's Office VP	Tongxiang Recon Industrial Co., Ltd. (Business)
Gold Tech Group Ltd., Director
Fan Chai Co., Ltd., Director	None	None	None	None
Vice President	R.O.C.	Chang Yu-Ming	Male	2021.06.01	5,000	0.00%	0	0.00%	0	0.00%	Internal Institute of Technology / Recon Industrial Corp., Ltd., Manufacturing Division VP	Tongxiang Recon Industrial Co., Ltd., Director
Recon Industrial (Vietnam) Co., Ltd, Director	None	None	None	None
Vice President	R.O.C.	Tunk Chuang	Male	2021.06.01	5,000	0.00%	0	0.00%	0	0.00%	Mantai, National Tanka University of Science and Technology / Recon Industrial Corp., Ltd., President's Office VP	Recon Technology Corp., Ltd., Director	None	None	None	None
Vice President	R.O.C.	Huang Liang-Wei	Male	2021.12.01	1,000	0.00%	0	0.00%	0	0.00%	Department and Graduate Institute of Chemical Engineering, National Chung Hong University / Recon Industrial Corp., Ltd., Manufacturing Division VP	None	None	None	None	None
Vice President	R.O.C.	Chiang Yao-Tsang	Male	2021.12.01	5,806	0.00%	0	0.00%	0	0.00%	Department and Graduate Institute of Business Administration, Tangjia University / Recon Industrial Corp., Ltd., Global Procurement Dept. VP	None	None	None	None	None
Vice President	R.O.C.	Kuo Pu-Chao	Male	2025.01.01	107,000	0.06%	6,000	0.00%	0	0.00%	Master of Business Administration, Durham University, UK / Recon Industrial Corp., Ltd., Director	Recon Technology Corp., Ltd., Director
Hangqiao Investment Co., Ltd, Director	None	None	None	None
Director	R.O.C.	Li Wen-Tu	Male	2021.01.01	0	0.00%	0	0.00%	0	0.00%	Global Institute of Technology / Recon Industrial Corp., Ltd., Technical Division Director	None	None	None	None	None
Director	R.O.C.	Chen Kuo-Jung	Male	2021.01.01	52,000	0.03%	7,000	0.00%	0	0.00%	Chayyung University of Technology / Recon Industrial Corp., Ltd., Manufacturing Division Director	Allison Electrical And Mechanical Tech (Thailand) Co. Ltd. Director	None	None	None	None
Director	R.O.C.	Feng Hsu-Hui	Male	2021.06.01	5,000	0.00%	0	0.00%	0	0.00%	EMBA, National Chung Hong University / Recon Industrial Corp., Ltd., Global Procurement Dept. Director	None	None	None	None	None
Director	R.O.C.	Chang Chih-Hao	Male	2021.06.01	5,000	0.00%	0	0.00%	0	0.00%	Chiao Tai High School / Recon Industrial Corp., Ltd., Manufacturing Division Director	None	None	None	None	None
Director	R.O.C.	Kuo Han-Yu	Male	2021.06.01	11,161	0.01%	0	0.00%	0	0.00%	Langhwa Institute of Technology / Recon Industrial Corp., Ltd., Global Procurement Dept. Director	None	None	None	None	None
Director CFO	R.O.C.	Hsu Sen-Yuan	Male	2021.06.01
2022.05.06	5,000	0.00%	121,000	0.07%	0	0.00%	Department and Graduate Institute of Finance, Chayyung University of Technology / Recon Industrial Corp., Ltd., General Administration Division Director	Tongxiang Recon Industrial Co., Ltd., Supervisor	None	None	None	None

Two. Corporate Governance Report

II. Remuneration to directors, supervisors, President and Vice President in the most recent year

(I). Remuneration to directors including independent directors

Unit: NTD thousand, December 31, 2025

Title	Name	Remuneration to directors	Ratio of sum of A, B, C and D to net income after tax	Remuneration received in the capacity as concurrent employee	Ratio of sum of A, B, C, D, E, F and G to net income after tax	Remuneration received from directors after than substitute
Remuneration (A)	Pension (B)	Director remuneration (C)	Business expenses (D)	Salary, bonus and special disbursement (E)	Pension (F)	Employee remuneration (G)
Recon Industrial Corp., Ltd.	All companies included in the financial reports	Recon Industrial Corp., Ltd.	All companies included in the financial reports	Recon Industrial Corp., Ltd.	All companies included in the financial reports	Recon Industrial Corp., Ltd.
Chairman	Wang Kuan-Hsiang	0	0	0	0	3,200
2.01%	2.01%	7.74%	7.74%	None
Director	Kun Forever Co., Ltd.	0	0	0	0	800
0.45%	0.45%	0.45%	0.45%	None
Representative: Wang Kuan-Chuan	0	0	0	0	0	0
0.19%	0.19%	1.03%	1.03%
Director	Huang Chin-Hsiang	0	0	0	0	800
0.65%	0.65%	2.46%	2.46%
Director	Chen Chan-Wei	0	0	0	0	800
0.64%	0.64%	0.64%	None
Director	Kuo Pu-Chao	0	0	0	0	800
0.65%	0.65%	2.15%	2.15%
Director	Yang Ching-Chi	0	0	0	0	0
0.56%	0.56%	0.56%	0.56%
Independent director	Lee Cherng	0	0	0	0	0
0.41%	0.41%	0.41%	0.41%
Independent director	Wu Chwan-Chyuan	0	0	0	0	0
0.41%	0.41%	0.41%
Independent director	Chen Li-Tsung	0	0	0	0	0
0.41%	0.41%	0.41%	0.41%
Total	0	0	0	0	6,400	6,400

Please describe the payment policy, system, standard and structure of the remuneration to independent directors, and the association of their responsibility, risk, and investment of time with the amount of the remuneration paid: The Board of Directors is authorized to determine the remuneration to the directors and independent directors of the Company based on individual participation in and contribution to the Company's operations and with reference to the general level in the industry.
Further to the aforementioned disclosure, the remunerations received by the directors of the Company for rendering service to all companies included in the financial reports (e.g. serving as a consultant but not the employee of the Company) in the most recent year: None.

Note 1: The amount of the pension actually paid in 2025 is zero. The pension is a provision under expenditure. The remunerations to directors (C) and employees (G) are estimates.

Two. Corporate Governance Report

(II). Remuneration to General Manager and Vice President

Unit: NTD thousand, December 31, 2025

Title	Name	Salary (A)		Pension (B)		Bonus and special disbursement (C)		Amount of remuneration to employees (D)				Ratio of sum of A, B, C and D to net income after tax (%)
		Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.		All companies included in the financial reports		Rexon Industrial Corp., Ltd.	All companies included in the financial reports
								Cash amount	Stock amount	Cash amount	Stock amount
General Manager	Lo Cheng-Chou	2,040	2,040	122	122	4,151	4,151	1,532	0	1,532	0	7,841
4.45%	7,841
4.45%	None
Vice President	Peng Meng-Wei	1,680	1,680	101	101	2,016	2,016	833	0	833	0	4,610
2.63%	4,610
2.63%	None
Vice President	Cheng Mei-Ling	1,440	1,440	86	86	1,992	1,992	833	0	833	0	4,351
2.47%	4,351
2.47%	None
Vice President	George Ku	1,140	1,140	68	68	1,567	1,567	433	0	433	0	3,208
1.82%	3,208
1.82%	None
Vice President	He Hsiu-Yuan	1,440	1,440	86	86	2,259	2,259	980	0	980	0	4,765
2.70%	4,765
2.70%	None
Vice President	Huang Chin-Hsiang	1,140	1,140	68	68	1,526	1,526	462	0	462	0	3,196
1.81%	3,196
1.81%	None
Vice President	Chang Yu-Ming	1,140	1,140	68	68	1,724	1,724	504	0	504	0	3,436
1.95%	3,436
1.95%	None
Vice President	Tank Chuang	1,806	1,806	108	108	2,013	2,013	693	0	693	0	4,620
2.62%	4,620
2.62%	None
Vice President	Huang Liang-Wei	1,740	1,740	104	104	1,073	1,073	447	0	447	0	3,364
1.91%	3,364
1.91%	None
Vice President	Chiang Yao-Tsung	1,140	1,140	68	68	1,679	1,679	553	0	553	0	3,440
1.95%	3,440
1.95%	None
Vice President	Kuo Pu-Chao	1,320	1,320	79	79	736	736	475	0	475	0	2,610
1.48%	2,610
1.48%	None
Total		16,026	16,026	958	958	20,736	20,736	7,745		7,745	-	45,405
25.79%	45,405
25.79%

Note 1: The pension is a provision under expenditure. The amount of the remuneration to employees (D) is an estimate.

(III). Remuneration to five highest remunerated management personnel of the TWSE/TPEx listed company

Unit: NTD thousand, December 31, 2025

Title	Name	Salary (A)		Pension (B)		Bonus and special disbursement (C)		Amount of remuneration to employees (D)				Ratio of sum of A, B, C and D to net income after tax (%)
		Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.	All companies included in the financial reports	Rexon Industrial Corp., Ltd.		All companies included in the financial reports		Rexon Industrial Corp., Ltd.	All companies included in the financial reports
								Cash amount	Stock amount	Cash amount	Stock amount
General Manager	Lo Cheng-Chou	2,040	2,040	122	122	4,151	4,151	1,532	0	1,532	0	7,841
4.45%	7,841
4.45%	None
Vice President	He Hsiu-Yuan	1,440	1,440	86	86	2,259	2,259	980	0	980	0	4,765
2.70%	4,765
2.70%	None
Vice President	Peng Meng-Wei	1,680	1,680	101	101	2,016	2,016	833	0	833	0	4,610
2.63%	4,610
2.63%	None
Vice President	Tank Chuang	1,806	1,806	108	108	2,013	2,013	693	0	693	0	4,620
2.62%	4,620
2.62%	None
Vice President	Cheng Mei-Ling	1,440	1,440	86	86	1,992	1,992	833	0	833	0	4,351
2.47%	4,351
2.47%	None

*Note: The pension is a provision under expenditure. The amount of the remuneration to employees (D) is an estimate.

Two. Corporate Governance Report

(IV). Names of managerial officers entitled to employee remuneration and status of the distribution

Unit: NTD thousand, December 31, 2025

Title	Name	Stock amount	Cash amount	Total	Total amount as a percentage of net income after tax %
General Manager	Lo Cheng-Chou	0	9,639	9,639	5.47%
Executive Vice President	Peng Meng-Wei
Vice President	Cheng Mei-Ling
Vice President	George Ku
Vice President (Account manager/Corporate Governance Officer)	He Hsiu-Yuan
Vice President	Huang Chin-Hsiang
Vice President	Chang Yu-Ming
Vice President	Tank Chuang
Vice President	Huang Liang-Wei
Vice President	Chiang Yao-Tsung
Vice President	Kuo Pu-Chao
Director	Li Wen-Tu
Director	Chen Kuo-Jung
Director	Feng Hsu-Hui
Director	Chang Chih-Hao
Director	Kuo Han-Yu
Director (CFO)	Hsu Sen-Yuan

Note: The aforementioned amounts are estimates. The amount of employee remuneration (in shares and in cash) distributed to the managerial officers based on the resolution of the Board of Directors in the most recent year shall be specified. If it is impossible to forecast the same, the amount to be distributed for the year shall be calculated based on the actual distribution ratio in the previous year. The net income after tax refers to the net income after tax in the most recent year; for the data to which the International Financial Reporting Standards are applied, the net income after tax refers to the net income after tax in the separate or individual financial reports in the most recent year.

Analysis of the total remuneration paid to directors, supervisors, President and Vice President of the Company as a percentage of the net income after tax stated in the separate or individual financial reported in the most recent two years, and description of the policies, standards, and portfolios for payment of the remuneration, the procedures for determining the remuneration, and the association with the operation performance and future risk exposure.

Analysis of the total remuneration paid to directors, supervisors, President and Vice President of the Company as a percentage of the net income after tax stated in the financial reported in the most recent two years: The total remuneration paid to directors in fiscal year 2025 decrease compared to 2024, primarily due to the reduce in net income after tax. The total remuneration of the President and Vice President increased, mainly due to personnel changes and a higher portion allocated to performance-based bonuses.

Title	Rexon Industrial Corp., Ltd.				All companies included in the financial reports
	2025		2024		2025		2024
	Amount	Ratio to net profit after tax	Amount	Ratio to net profit after tax	Amount	Ratio to net profit after tax	Amount	Ratio to net profit after tax
Director	28,290	16.05%	30,706	7.89%	28,290	16.05%	30,706	7.89%
Supervisor		0.00%	-	0.00%		0.00%	-	0.00%
General Manager and Vice President	45,465	25.79%	39,582	12.41%	45,465	25.79%	39,582	12.41%
Net profit after tax	176,307		318,832		176,307		318,832	0.00%

Policies, standards, and portfolios for payment of the remuneration, the procedures for determining the remuneration, and the association with the operation performance and future risk exposure:

Two. Corporate Governance Report

(1). The remuneration to directors includes travel allowance and distribution of earnings to directors and supervisors. The travel allowance is paid with reference to the level of other companies in the industry and the attendance of the directors in Board meetings. 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. Director remuneration is in accordance with Article 25 of the company's articles of association: If the company makes a profit in the year, no more than 5% will be used as director remuneration, and it shall be reviewed and approved by the Remuneration Committee and the Board of Directors. Independent directors shall not participate in the distribution of director remuneration. Independent Directors: The independent directors of the Company receive a fixed monthly remuneration and travel and attendance fees for attending board meetings. The relevant performance appraisal and reasonableness of remuneration have been reviewed by the Remuneration Committee and the Board of Directors: 2.43% of the pre-tax profit before deducting the profit distributed to employees and directors in 2025 is the director's remuneration, which is NT$6,400,000.

(2). The remuneration of the President and Vice President includes salary, performance bonuses, employee profit-sharing, and employee stock warrants. It is determined based on their respective positions and responsibilities, with reference to industry standards for equivalent roles. In addition, if the Company records a profit for the year, pursuant to Article 25 of the Company's Articles of Incorporation, not less than 5% of the annual profit shall be allocated as employee remuneration. This distribution must be reviewed and approved by the Remuneration Committee and the Board of Directors.

(3). The Company's remuneration policy and related compensation standards and systems are reviewed primarily based on its overall operating performance. Compensation is determined according to performance achievement rates and individual contributions, with the goal of enhancing the overall organizational effectiveness of the Board of Directors and the management team. Industry salary benchmarks are also considered to ensure that the remuneration of the Company's executives remains competitive and helps retain top management talent. Major management decisions are made with a balanced assessment of risk factors, and their outcomes are reflected in the Company's profitability. Accordingly, management remuneration is closely tied to risk control performance.

(4). The remuneration paid by the Company to the General Manager and Deputy General Manager includes employee stock ownership, the actual value of which is related to the future stock price, which means that the employee shares the future operating risks with the Company.

(5). To ensure sustainable development aligns with business objectives and creates long-term value, the Board of Directors of the Company passed the "Senior Manager Compensation and ESG-Related Performance Incentive Method" on November 6, 2024.

15 -

Two. Corporate Governance Report

III. Status of corporate governance

(I). Information on operation of the Board of Directors

The Board of Directors held 5 meetings in the most recent year (2025). The presence and attendance of the directors are as follows

Title	Name	Actual number of presence (attendance) B	Actual presence (attendance) rate (%) [B/A]
Chairman	Wang Kuan-Hsiang	5	100%
Director	Wang Kuan-Chuan	5	100%
Director	Huang Chin-Hsiang	5	100%
Director	Kuo Pu-Chao	5	100%
Director	Chen Chun-Wei	5	100%
Director	Yang Ching-Chi	5	100%
Independent director	Lee Cherng	5	100%
Independent director	Wu Chwan-Chyuan	5	100%
Independent director	Chen Li-Tsung	4	80%

Other matters to be specified:

I. Where any of the following circumstances occurs to any meeting of the Board of Directors, the date, term and proposal of the meeting as well as the opinions of all the independent directors and actions taken by the Company on such opinions shall be specified:

(I) Matters referred to in Article 14-3 of the Securities and Exchange Act:

Date	Proposal	Opinions of the independent directors	Actions of the Company on such opinions	Resolution
2025.02.26
1st meeting in 2025	Proposal for to Invest and establish a subsidiary in Vietnam.	Consent	N/A	All the present directors approved the proposal unanimously when the chairperson asked for their opinions.
2025.02.26
2nd meeting in 2025	Proposal for the “Statement of Internal Control System”	Consent	N/A	All the present directors approved the proposal unanimously when the chairperson asked for their opinions.
2025.05.07
3rd meeting in 2025	Proposal for amendment of the “Internal Control System”, and “Internal Audit Implementation Rules”.	Consent	N/A	All the present directors approved the proposal unanimously when the chairperson asked for their opinions.

(II) In addition to the matters mentioned above, any resolution of the Board of Directors for which dissent or reservation is expressed by any independent director, and recorded in the minutes or a written statement: None.

II. Regarding the situation of a director’s recusal of conflict of interest, the name of the director, proposal, reasons for the recusal, and participation in the voting shall be described:

Date	Director	Proposal	Reasons for the recusal	Participation in the voting
2025.05.07
3rd meeting in 2025	Wang Kuan-Hsiang, Wang Kuan-Chuan, Huang Chin-Hsiang, Chen Chun-Wei, Kuo Pu-Chao	Proposal for remunerations to directors	Related party	Except for the directors who did not participate in the discussion and voting due to conflict of interest, the rest of the present members approved the proposal unanimously when the chairperson asked for their opinions.
2025.05.07
3rd meeting in 2025	Wang Kuan-Hsiang, Wang Kuan-Chuan, Huang Chin-Hsiang, Kuo Pu-Chao	Proposal for remunerations to employee	Related party	Except for the directors who did not participate in the discussion and voting due to conflict of interest, the rest of the present members approved the proposal unanimously when the chairperson asked for their opinions.

III. Please disclose the interval, period, scope, method and item of the self-evaluation (or peer evaluation) of the Board of Directors, and specify the implementation status of this evaluation:

Evaluation interval	Evaluation period	Evaluation scope	Evaluation method	Evaluation item	Evaluation result

16 -

Two. Corporate Governance Report

| Once a year | January 1, 2025 to December 31, 2025 | 1. Entire Board of Directors
2. Individual members
3. Functional committees (Audit Committee/Compensation Committee/Sustainable Development Committee) | Self-evaluation of the Board of Directors | Evaluation Items of Board of Directors (functional committees Audit Committee/Compensation Committee/Sustainable Development Committee)
A. Participation in the operations of the company
B. Improvement of the Board of Directors' decision-making quality
C. Composition and structure of the Board of Directors
D. Election and continuing education of the directors
E. Internal control
Evaluation items of Board members (self-evaluation or peer evaluation):
A. Understanding of the goals and missions of the Company
B. Awareness of the duties of a director
C. Participation in the operations of the company
D. Management of internal relationship and communication
E. Professionalism and continuing education of directors
F. Internal control | Overall score of the Board of Directors: 5 points; evaluation result: 4.98 points.
Overall score of the functional committees (Audit Committee/Compensation Committee/Sustainable Development Committee): 5 points; evaluation result: 4.92 points.
Overall score of the Board members: 5 points; evaluation result: 4.91 points. This indicates that the directors give positive evaluation to the efficiency and outcome of the indicators in terms of their implementation. |
| --- | --- | --- | --- | --- | --- |

IV. Evaluation of the goals (e.g. establishment of the Audit Committee, improvement of information transparency, etc.) and implementation with respect to enhancement of the function of the Board of Directors in the current and most recent year:
(I) The Company has established the "Ethical Corporate Management Best Practice Principles" and the "Code of Ethical Conduct", and has uploaded them to the MOPS and the official website of the Company.
(II) The directors are elected under the candidate nomination system as stated in the Company's Articles of Incorporation. We carefully assess the qualifications of the candidates and their willingness to be elected.
(III) The Company arranges continuing education courses for directors and supervisors every year to enhance their legal knowledge with respect to the themes of corporate governance.
(IV) The directors of the Company were reelected at the annual meeting of shareholders on May 30, 2023. The three independent directors were commissioned to serve as the members of the Company's 2nd Audit Committee. It shall hold at least one meeting every quarter. The Audit Committee held 5 meetings in 2025 with the CPAs and the chief auditor attending as nonvoting participants. The Audit Committee performed well in operation and communication.
(V) On November 7, 2023, the board of directors of our company established a sustainable development committee, and appointed 3 independent directors and 3 directors as the first sustainable development committee members of the company. The committee will be held at least once a year. In 2025, the sustainable development committee held 2 meetings. During the meetings, the management team and the audit supervisor were present, and the operation and communication were good.
(VI) The Company has established the Regulations Governing the Performance Evaluation of the Board of Directors and discussed corresponding action plans after making assessment every year to enhance the operation efficiency of the Board of Directors on an ongoing basis.
(VII) On November 6, 2024, the company's board of directors established the "Senior Manager Compensation and ESG-related Performance Incentive Method", incorporating ESG indicators into performance management, specifically linking senior executives' remuneration with ESG performance, implementing the company's sustainable development vision and achieving the set sustainable development goals.

(II). Operation of the Audit Committee or participation of the supervisors in the operation of the Board of Directors:

Operation of the Audit Committee.

(1). The Audit Committee is composed of all the independent directors and holds at least one meeting every quarter. The cores of the annual tasks are described below:
A. Financial Statement Audit and Accounting Policies and Procedures.
B. Internal control system and related policies and procedures.
C. Transaction involving material asset or derivatives.
D. compliance with relevant regulations.
E. Performance of duties of the Audit Committee.
F. Audit Committee Performance Evaluation Self-Assessment Questionnaire.

(2). Operation of the Audit Committee:

The Audit Committee held 4 meetings (A) in the most recent year (2025). The presence and attendance of the independent directors are as follows

Two. Corporate Governance Report

Title	Name	Actual number of presence (B)	Number of presence by proxy	Actual presence rate (%) (B/A)(Note)	Remarks
Independent director	Lee Cherng	5	0	100
Independent director	Wu Chwan-Chyuan	5	0	100
Independent director	Chen Li-Tsung	4	0	100
Other matters to be specified:
I. Where any of the following circumstances occurs to the operation of the Audit Committee, the date, term and proposal of the Audit Committee meeting as well as the dissent, reservation or major suggestion of any independent director, the Audit Committee resolution, and actions taken by the Company on the Audit Committee’s opinions shall be specified.
(I) Matters referred to in Article 14-5 of the Securities and Exchange Act.
Date	Proposal	Dissent and reservation of independent director	Major suggestions of independent directors	Audit Committee resolution	Actions of the Company on the Audit Committee’s opinions
2025.01.21
1st meeting in 2025	Proposal for to Invest and establish a subsidiary in Vietnam.	None	None	Approved and adopted by all the Audit Committee members.	N/A
2025.01.21
1st meeting in 2025	Proposal for to acquire the land use rights on behalf of the unestablished Vietnam subsidiary.	None	None	Approved and reserved by all the Audit Committee members.	N/A
2025.02.26
2nd meeting in 2025	Internal audit activity report.
Proposal for 2024 financial reports.
Proposal for the “Statement of Internal Control System”.
Proposal for independent report assessing visa statistics.
Proposal for plan is to formulate "general principles for pre-approved non-confirmation service policies".
Proposal for to acquire the land use rights on behalf of the unestablished Vietnam subsidiary.	None	None	Approved and adopted by all the Audit Committee members.	N/A
2025.05.07
3rd meeting in 2025	Internal audit activity report.
2025 Q1 financial reports
Proposal for the “Statement of Internal Control System” and “Internal Audit Implementation Rules”.	None	None	Approved and adopted by all the Audit Committee members.	N/A
2025.08.06
4th meeting in 2025	Internal audit activity report.
2025 Q2 financial reports.	None	None	Approved and adopted by all the Audit Committee members.	N/A
2025.11.03
5th meeting in 2025	Internal audit activity report.
Proposal for 2026 audit plan.
Proposal for visa accountant public funding case.
2025 Q3 financial reports.	None	None	Approved and adopted by all the Audit Committee members.	N/A
(II) In addition to the matters mentioned above, any resolution unapproved by the Audit Committee but passed by more than two-thirds of the directors: None.
II. Regarding the situation of an independent director’s recusal of conflict of interest, the name of the independent director, proposal, reasons for the recusal, and participation in the voting shall be described: None.
III. Communication between independent directors and internal chief auditor/CPAs (including material matters, methods and results of communication on the Company’s financial and business conditions, etc.)
(I) Communication between independent directors and internal chief auditor/CPAs and the communication methods:

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The internal chief auditor of the Company regularly reports the audit activities to the independent directors at the Audit Committee meeting, and communicates the results in the audit report and the follow-up of the implementation status to them.
The CPAs of the Company report the review and audit of the financial reports and internal control of the Company to the independent directors at the quarterly Audit Committee meeting, and perform adequate explanation and communication on the review and audit of the financial reports and the results thereof, the results of the internal control audit, and relevant laws and regulations.

(II) The major matters for communication between the independent directors and the internal chief auditor in 2025 are summarized as follows: There was good communication with the independent directors regarding the implementation of the audit activities and its effectiveness.

Date	Matters for communication	Communication result
2025.02.26
2nd meeting in 2025	Internal audit activity report.
Proposal for the “Statement of Internal Control System”.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.05.07
3rd meeting in 2025	Internal audit activity report.
Proposal for the “Statement of Internal Control System” and “Internal Audit Implementation Rules”.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.08.06
4th meeting in 2025	Internal audit activity report.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.11.03
5th meeting in 2025	Internal audit activity report.
Proposal for 2025 audit plan	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.

(III) The major matters for communication between the independent directors and the CPAs in 2025 are summarized as follows: There was good communication between the independent directors and CPAs.

Date	Matters for communication	Communication result
2025.02.26
2nd meeting in 2025	The CPAs’ review result report of 2024 financial statements.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.05.07
3rd meeting in 2025	The CPAs’ review result report of 2025 Q1 financial statements.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.08.06
4th meeting in 2025	The CPAs’ review result report of 2025 Q2 financial statements.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.
2025.11.03
5th meeting in 2025	The CPAs’ review result report of 2025 Q3 financial statements.	The independent directors has full understanding and the result was incorporated in the Audit Committee meeting minutes.

Participation of the supervisors in the operation of the Board of Directors: None.
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(III). Status of corporate governance, deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and reasons for such deviations:

Evaluation item	Operation			Reasons for the deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
I. Has the Company established and disclosed its corporate governance principles based on the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”?	V		The Company has established the “Corporate Governance Best Practice Principles.”	No significant deviation
II. Shareholding structure and shareholder’s equity
(I) Does the Company have an internal procedure and handle shareholders’ suggestions, doubts, disputes, and litigations accordingly?
(II) Does the Company have the name list of the major shareholders who actually control the Company and the persons who have the ultimate control of the major shareholders?
(III) Has the Company established and implemented risk control and firewall mechanisms between the Company and its affiliates?
(IV) Has the Company established internal regulations to prohibit insiders from using the information not available to the market to trade securities?	V
V
V
V	(I) The Company has established the “Material Internal Information Handling Procedure” and appointed a spokesman and a deputy spokesman to deal with shareholder affairs.
(II) We have designated shareholder service personnel to deal with relevant matters and commissioned Chinatrust Commercial Bank - Stock Agency Department as our stock service agent to give assistance to ensure the services for major shareholders.
(III) The Company has established the “Affiliates Management Regulations” and other relevant internal rules to build appropriate risk control mechanisms and firewalls.
(IV) The company has formulated "internal major information handling procedures" and publicizes them to insiders at least once every quarter. Stocks will be traded during the closed period fifteen days before the report announcement.	(I) No significant deviation
(II) No significant deviation
(III) No significant deviation
(IV) No significant deviation
III. Composition and responsibilities of Board of Directors
(I) Has the Board of Directors established and implemented diversity policies and specific management objectives?	V	(I) Board of Directors’ member diversity policy and implementation thereof
1. The Board of Directors of the Company adopted the “Corporate Governance Best Practice Principles” on August 9, 2017 and defined the diversity policy in Chapter 3 “Enhancement of the Functionality of the Board of Directors”. In addition, the candidate nomination system is fully applied to the election of the directors as stated in the Article of Incorporation. The education, experience, and quantifications of the candidates are subject to assessment. The “Corporate Governance Best Practice Principles” is observed to ensure the diversity of the Board members.
2. Regarding the implementation status of the diversity policy on the composition of the Board members (Table 1): The current Board of Directors comprises 9 directors, including 6 directors and 3 independent directors (33%). The Board members possess extensive experience and	(I) No significant deviation

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Evaluation item	Operation			Reasons for the deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
(II) Has the Company voluntarily formed other functional committees in addition to the Compensation Committee and Audit Committee set up pursuant to relevant laws and regulations?	V		professionalism in law, business, and management. Gender equity in the Board's composition is another concern for the Company. The target for the female director ratio is set at over one-third. Currently, one of the nine directors is female, representing a ratio of 11%. The company has achieved its specific management goal of diversifying its board of directors..	(II) No significant deviation
(III) Does the Company have regulations and methods for the performance evaluation of the Board of Directors and conduct regular performance evaluation every year? Does the Company submit the results of the performance evaluation to the Board of Directors? Are the results used as the basis for the remuneration to and nomination for re-election of individual directors?	V		(II) The Company voluntarily sets up a Sustainability Committee and Nomination Committee. We will set up other functional committees in accordance with the law and the operations of the Company.	(III) No significant deviation
(IV) Does the Company review the independence of the CPAs on a regular basis?	V		(III) The Company has established the Regulations Governing the Performance Evaluation of the Board of Directors and performed the evaluation once a year. The results of the performance evaluation are submitted to the Board of Directors and used as the basis for the remuneration to and nomination for re-election of individual directors. The self-evaluation of the Board performance showed a good result in 2025. It was submitted to the Board of Directors on February 26, 2026. We will use it as reference for the remuneration to and nomination for re-election of individual directors.	(III) No significant deviation
IV. Does the Company, as a TWSE/TPEx listed company, have an adequate number of corporate governance personnel with appropriate qualifications as well as a chief corporate governance officer to be in charge of corporate governance affairs including, but not limited to, providing directors and supervisors with required information for fulfillment of their duties, assisting directors and supervisors in observance of laws and regulations, handling relevant matters for Board meetings and shareholders' meetings according to the laws, and preparing minutes of Board meetings and shareholders' meetings?	V		The Company has set up part-time personnel to handle corporate governance matters.	No significant deviation

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Evaluation item	Operation			Reasons for the deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
V. Has the Company established a communication channel for the stakeholders (including but not limited to shareholders, employees, customers and suppliers), set a stakeholder section on the Company's website, and responded to the concerns of the stakeholders on the material issues related to corporate social responsibilities?	V		The Company provides communication channels and practices for stakeholders with respect to the issues that they are concerned about. We have set up a stakeholder section and provided the contact information of the corresponding units on our website in order to respond properly to the issues that the stakeholders are concerned about.	No significant deviation
VI. Does the Company commission a professional stock service agent to deal with the matters of shareholders' meetings?	V		The Company has commissioned Chinatrust Commercial Bank - Stock Agency Department as our stock service agent for dealing with the matters of shareholders' meetings.	No significant deviation
VII. Disclosure of information
(I) Has the Company established a website to disclose the financial, operational and corporate governance information?
(II) Has the Company adopted other means to disclose information (e.g. English website, designation of specific personnel to collect and disclose corporate information, implementation of a spokesperson system, disclosure of investor conferences on the Company's website)?
(III) Has the Company announced and reported annual financial statements within two months after the end of a fiscal year, and announced and reported Q1, Q2, Q3 financial statements and the operating status of each month in advance of the prescribed deadline?	V	(I) The Company has set up a website (www.rexon.net) and disclosed the information on our financial, operational and corporate governance information.
(II) We have set up our website and provided relevant English and Chinese information as a reference for our shareholders and stakeholders. Mr. Kuo Pu-Chao, a vice president of the Company, is designated to serve as the spokesman and Mr. Hsu Sen-Yuan as the deputy spokesman. The public relation department is responsible for maintaining the channels of communication with the media. Any material information that may affect the shareholders and stakeholders are disclosed timely and adequately. The Company has established the “Material Internal Information Handling Procedure” to govern the handling of material internal information. This management procedure has been communicated to all the employees, managerial officers and directors.
(III) The Company has made announcements and submitted reports within the required timeframe. The 2025 financial statements were announced in February 2026.	(I) No significant deviation
(II) No significant deviation
(III) No significant deviation
VIII. Does the Company have other information that enables a better understanding of the Company's corporate governance practices (including but not limited to employee rights, employee care, investor relations, supplier relations, stakeholders' rights, continuing education of directors and supervisors, implementation of risk management policies and risk assessment standards, implementation of customer policies, and insuring against liabilities of Company's directors and supervisors)?	V	I. Employee rights: In addition to protecting the legal rights of the employees according to the Labor Standards Act, the Company has set up the Employee Welfare Committee to provide various benefits for employees.
II. Employee care: The Company has established a good relationship of mutual trust and independence with our employees through the employee welfare system and education and training system. We also arrange health checkup on a regular basis.
III. Investor relations: A spokesman and deputy	No significant deviation

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Evaluation item	Operation
	Yes	No	Summary
			spokesman system has been set up for outward relationship and communication, and a person has been designated to disclose the information of the Company on the MOPS according to laws and regulations.
IV. Supplier relations: The Company will continue to maintain a good relationship with the suppliers based on the principles of mutual trust and benefit.
V. Stakeholders’ rights: The Company maintains smooth communication and recommendation channels with the stakeholders to protect the legal rights that they deserve. A spokesman and deputy spokesman system has been set up for answering the questions and dealing with the recommendations that shareholders raise.
VI. Continuing education of directors: the company encourages the directors to take continuing education courses. the continuing education courses that the directors of the company took in 2025 included analysis of copyright disputes and related legal liabilities in the artificial intelligence (AI) boom, global economic conditions and industry prospects, analysis of three key practical issues for corporate ESG sustainability: greenwashing, human rights, and integrity, corporate governance and securities regulations, the importance and practical cases of enterprise artificial intelligence applications, etc.
VII. Implementation of risk management policies and risk assessment standards: The company has established the SOP and an internal management system in line with relevant laws and the actual operational requirements. In addition to organizing education and training to ensure the correct concept of the employees, we promote and implement different risk management regulations to reduce the risk that may occur to our finance and business. In addition, the internal auditors checks the implementation of the Company’s risk management regulations. The Company makes improvement for the deficiencies, performs proper assessment, and effectively supervises the operation of the risk management mechanism.
VIII. Implementation of customer policies: The Company protects the confidentiality of the customers strictly. For the customers who have a competitive relationship with each other, designs are conducted in different specific sections and firewalls are built for this purpose.
IX. The Company takes out liability insurance for our directors and supervisors. These have been reported on the MOPS.

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Two. Corporate Governance Report

Evaluation item	Operation
	Yes	No	Summary
			X. Internal and external education and training on ethical management have been organized (including the courses on ethical management, corporate governance, professional ethics and security management, and accounting system and internal control.)
IX. Improvements made based on the corporate governance evaluation result announced by the Corporate Governance Center of TWSE in the most recent year, and the prioritized improvements and measures for the areas to be improved. There is no needed to be described for the companies that are not included in the evaluation):
1. Improvements that the Company has made:
A. Disclose the policy on linking senior executive compensation with ESG-related performance evaluations.
B. Establish written rules for financial operations with related parties.
2. Prioritized improvements and measures for the areas to be improved:
A. Develop specific measures to enhance corporate value.
B. Develop an intellectual property management plan that is linked to operational objectives.

Two. Corporate Governance Report

Table 1: The implementation status of the diversity policy on the composition of the Board members

Name	Nationality	Gender	Employee status	Age				Term of office for independent directors		The ability to make judgments about operations	Accounting and financial analysis ability	Business management ability	Crisis management ability	Knowledge of the industry	International market perspective	Leadership ability	Decision-making ability
				41-50	51-60	61-70	71-80	Less than 3 years	3 to 9 years
Wang Kuan-Hsiang	R.O.C.	Male	V	V						V	V	V	V	V	V	V	V
Wang Kuan-Chuan	R.O.C.	Female	V	V						V	V	V	V	V	V	V	V
Huang Chin-Hsiang	R.O.C.	Male	V		V					V	V	V	V	V	V	V	V
Chen Chun-Wei	R.O.C.	Male		V						V	V	V	V	V	V	V	V
Kuo Pu-Chao	R.O.C.	Male	V	V						V	V	V	V	V	V	V	V
Yang Ching-Chi	R.O.C.	Male			V					V	V	V	V		V	V	V
Lee Cherng	R.O.C.	Male				V			V	V	V	V	V		V	V	V
Wu Chwan-Chyuan	R.O.C.	Male					V		V	V	V	V	V		V	V	V
Chen Li-Tsung	R.O.C.	Male		V				V		V	V	V	V		V	V	V

Table 2: Assessment criteria of CPA independence

Serial no.	Assessment item	CPA ChenCheng-Hsueh	CPA Chang Tzu-Hsin
1	Not a director or supervisor of the Company or our affiliates.	Yes	Yes
2	Not a director or supervisor of the Company or our affiliates (except for an independent director of the Company, or the parent of the Company, or a subsidiary in which the Company directly or indirectly holds more than 50% voting shares.)	Yes	Yes
3	Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate amount of 1% or more of the total number of issued shares of the Company or ranks as one of the Top 10 shareholders.	Yes	Yes
4	Not a spouse, or relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any persons under the preceding three paragraphs.	Yes	Yes
5	Not a director, supervisor or employee of an corporate shareholder holding more than 5% of the issued shares of the Company, or of any Top 5 corporate shareholders.	Yes	Yes
6	Not a director, supervisor, managerial officer, or shareholder holding more than 5% of the issued shares of a specific company or institution that has a financial or business relationship with the Company.	Yes	Yes
7	Not a spouse nor a relative within the second degree of kinship of another director.	Yes	Yes
8	None of the circumstances under Article 30 of the Company.	Yes	Yes
9	Not elected in the capacity of a government agency, a juristic person, or a representative thereof, as provided in Article 27 of the Company Act;	Yes	Yes
10	Other valid reference information: CPA's Statement of Independence	Yes	Yes

Two. Corporate Governance Report

(IV). If the Company has a compensation committee, its formation and operation shall be disclosed:

Information on Compensation and Nomination Committee members:

CriteriaStatus Name		Professional qualifications and experience	Independence
Independent director (convener)	Lee Cherng	An instructor or higher up in a department of business, law, or other academic department required for the business of the Company in a public or private junior college, college, or university, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5–8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	2
Independent director	Wu Chwan-Chyuan	CPA or other professional or technical specialists who have passed a national examination and have been awarded a certificate in a professional capacity that is necessary for the business of the Company, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5–8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	1
Independent director	Chen Li-Tsung	An instructor or higher up in a department of business, law, or other academic department required for the business of the Company in a public or private junior college, college, or university, without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5–8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	None
Director	Yang Ching-Chi	Work experience in business, law, or other areas required for the business of the Company without the circumstances under Article 30 of the Company Act.	1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates.
2. The independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others.
3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5–8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.	None

Note 1: Professional qualifications and experience : Describe the professional qualifications and experience of individual directors and supervisors. If they are

Two. Corporate Governance Report

members of the audit committee and have accounting or financial expertise, they should describe their accounting or financial background and work experience, and also explain whether they have not met the requirements of Article 30 of the Company Act.

Note 2: Independent directors should describe the circumstances that satisfy their independence, including but not limited to the person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates; the independent director or his spouse or relative within the second degree of kinship does not hold any stocks of the Company on his/her own or in the name of others; whether the independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (with reference to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies); the independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent two years.

Note 3: For disclosure methods, please refer to the Best Practice Reference Examples on the TWSE website.

| Status
(Note 1) | Criteria
Name | More than 5 years of work experience and following professional qualifications | Compliance with independence requirements (Note 2) | Number of other public companies where the person also serves in a compensation committee |
| --- | --- | --- | --- | --- |
| An instructor or higher up in a department of commerce, law, finance, accounting, or other academic department related to company business in a public or private junior college, college, or university | A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and has been awarded a certificate in a professional capacity that is necessary for the business of the Company. | Work experience in business, law, finance, accounting, or other areas required for the business of the Company | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Independent director | Lee Cherng | V | | V | V | V | V | V | V | V | V | V | V | 2 |
| Independent director | Wu Chwan-Chyuan | | V | V | V | V | V | V | V | V | V | V | V | 1 |
| Independent director | Chen Li-Tsung | V | | V | V | V | V | V | V | V | V | V | V | 0 |
| Director | Yang Ching-Chi | | | V | V | V | V | V | V | V | V | V | V | 0 |

Note 1: Please fill in the column under "Status" with "director," "independent director" or "others".
Note 2: Place a "V" in the box if the member met the following conditions at any time during active duty and two years prior to the date elected.
(1) Not a director or supervisor of the Company or our affiliates.
(2) Not a director or supervisor of the Company or our affiliates (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(3) Not a natural-person shareholder who holds shares, together with those held by his/her spouse, minor children, or held by the person under others' names, in an aggregate of 1% or more of the total number of issued shares of the Company, or ranking among the top 10 natural-person shareholders in holdings.
(4) Not a spouse, or relative within the second degree of kinship, or lineal relative within the third degree of kinship, of an executive officer falling under Point (1) above, or of any of the persons in Point (2) or (3) above.
(5) Not a director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the total number of issued shares of the Company, or ranks as one of its top five shareholders, or designates its representative to serve as a director or supervisor of the Company under Article 27, paragraph 1 or 2 of the Company Act. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(6) In case a majority of the Company's director seats or voting shares and those of any other company are controlled by the same person, not a director, supervisor, or employee of that other company. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(7) In case the President, General Manager, or person holding an equivalent position of the Company and a person in any of those positions at another company or institution are the same person or are spouses, not a director, supervisor or employee of that other company or institution. (The same does not apply, however, in cases where the person is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(8) Not a director, supervisor, or managerial officer, or a shareholder directly holding 5% or more of the shares, of any specific company or institution that has a business or financial relationship with the Company. (The same does not apply, however, in cases where the specific company or institution holds 20% or more and not more than 50% of the total number of the Company's issued shares and is an independent director of the Company, the parent of the Company, or any subsidiary, or any subsidiary of the same parent, as appointed and concurrently serving as such in accordance with the Act or the regulations of the local country.)
(9) Not a professional individual who, or an owner, partner, director, supervisor, or managerial officer of a sole proprietorship, partnership, company, or institution that, provides auditing services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the most recent two years with an accumulated service compensation of NTS500,000 or less, or a spouse thereof; provided that this restriction does not apply to a member of the Compensation Committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Securities and Exchange Act or to the Business Mergers and Acquisitions Act or related laws or regulations.
(10) None of the circumstances under Article 30 of the Company. Not a director or supervisor of the Company or our affiliates.

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Information on the operation of the Compensation and Nomination Committee

(1). The Compensation and Nomination Committee of the Company is comprised of 4 members.

(2). Term of office of the current Committee members: May 30, 2023 to May 29, 2026; the Compensation and Nomination Committee held 2 meetings (A) in the most recent year (2025). The qualifications of the members and their presence status are as follows:

Title	Name	Actual number of presence (B)	Number of presence by proxy	Actual presence rate (%) [B/A]
Convener	Lee Cherng	2	0	100%
Member	Wu Chwan-Chyuan	2	0	100%
Member	Chen Li-Tsung	1	0	50%
Member	Yang Ching-Chi	2	0	100%
Other matters to be specified:
I. If the Board of Directors does not adopt or revise the suggestions of the Compensation Committee, the date, term and proposal of the Board of Directors meeting, the Board of Directors resolution and actions taken by the Company on the Compensation Committee’s opinions shall be specified (if the amount of remuneration adopted by the Board of Directors is higher than that suggested by the Compensation Committee, the differences and reasons must be indicated): None.
II. For any resolution of the Compensation Committee for which dissent or reservation is expressed by any of the members and recorded in the minutes or a written statement, the date, term and proposal of the Compensation Committee meeting, opinions of all members and actions taken on such opinions shall be specified: None.

(3). Discussion matters and resolutions of the Compensation and Nomination Committee in 2025, and the actions of the Company on the opinions of the Committee members:

Date	Proposal	Resolution
2025.02.26
1st meeting in 2025	1. Minutes and Implementation of the Last Meeting.
2. Report on changes in position and salary.
3. Proposal for the distribution of the measurement to the employees and directors in 2024.
4. Proposal for definition and Scope of Frontline Employees.	All the present members approved the proposal unanimously when the chairperson asked for their opinions.	N/A
2025.05.07
2nd meeting in 2025	1. Minutes and Implementation of the Last Meeting.
2. Report on changes in position and salary.
3. Proposal for the directors’ and managers’ compensation distribution in 2024.
4. Proposal for implementing a Bonus-Based Employee Stock Ownership Trust Plan and a Case Involving Managers’ Participation in a Bonus-Based Employee Stock Ownership Trust.	All the present members approved the proposal unanimously when the chairperson asked for their opinions.	N/A

Information about the members of the nomination committee and its operation: On November 3, 2025, The Company's Board of Directors approved the renaming of the "Compensation Committee" to "Compensation and Nomination Committee", Nomination committee information is the same as above, and the operational status is not specified.

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(V). Promotion and implementation status of sustainable development, deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and reasons for such deviations:

Operation of the Sustainability Committee.

(1). The Sustainability Committee is composed of 3 independent directors and 3 directors, and holds at least one meeting every year. The cores of the annual tasks are described below:

A. Formulation of the company’s sustainable development policy.
B. The sustainable development of the company includes the formulation of sustainable governance, honest management, environmental and social goals, strategies and execution plans.
C. Review, track and revise the implementation and effectiveness of the company's sustainable development, and report to the board of directors regularly.
D. Pay attention to issues of concern to all stakeholders, including shareholders, customers, suppliers, employees, governments, non-profit organizations, communities, and the media, and supervise communication plans.

(2). Operation of the Sustainability Committee: Recent year (2023) The Sustainability Committee was established on Nov 7, 2023.

the Compensation Committee held 2 meetings (A) in the most recent year (2025). The qualifications of the members and their presence status are as follows:

Title	Name	Actual number of presence (attendance) B	Number of presence by proxy	Actual presence (attendance) rate (%) [B/A]
Director	Wang Kuan-Chuan	2	0	100%
Independent director	Lee Cherng	2	0	100%
Independent director	Wu Chwan-Chyuan	2	0	100%
Independent director	Chen Li-Tsung	1	0	50%
Director	Wang Kuan-Hsiang	2	0	100%
Director	Yang Ching-Chi	2	0	100%
Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
---	---	---	---	---
	Yes	No	Summary
I. Does the Company have a governance structure that promotes sustainable development and have a dedicated unit or designate an existing unit for the task of sustainable development promotion? Does the Board of Directors of the Company authorize the top management to handle relevant matters? How does the Board of Directors conduct supervision?	V		1. Governance Structure for Sustainable Development
The Board of Directors serves as the highest decision-making body for sustainable development-related matters. In November 2023, the Company established a functional committee, the Sustainable Development Committee, chaired by Director Wang Guanjuan. Together with directors from diverse professional backgrounds, the Committee reviews the Company’s core operational capabilities and formulates its mid- to long-term sustainable development strategies.
The Sustainability Office is responsible for supporting the planning and execution of sustainability strategies, while the Rexon Sustainability Management Committee (the “ESG Committee”) is responsible for driving implementation.
2. Implementation by Organizational Units
(1) Dedicated sustainability unit
The Rexon Sustainability Management Committee was formally established in November 2021 under the authorization of the Board of Directors.	No significant deviation

Two. Corporate Governance Report

Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
	Yes	No	Summary
			Directors.
(2) Composition, operation, and implementation status
The Committee is composed of senior management from various functions. Each functional head is responsible for:
Providing customers with competitive and innovative products and services
Promoting green and low-carbon practices among suppliers
Providing a safe and healthy working environment
Supporting employee development and growth
Strengthening corporate governance and safeguarding stakeholders' rights
Participating in social welfare initiatives
These efforts aim to create value in sustainable growth, green operations, talent attraction and retention, shared prosperity, and social contribution.
(3) Reporting to the Board of Directors
The Committee reports to the Board of Directors at least twice a year. In 2025, reports were presented on February 26 and August 6.
3. ESG Committee Governance
The Chairperson of the ESG Committee is designated by the Chairman, and the members consist of the Company’s senior management. The Chairperson regularly reports to the Board of Directors on sustainability strategies, objectives, management policies, and the status of implementation and review.
4. Sustainable Development Committee Operations
The Chairperson of the Sustainable Development Committee reports to the Board of Directors semi-annually on implementation results and future plans. Two meetings were held in 2025. Key agenda items included:
(1) Identification of material sustainability issues and formulation of action plans
(2) Sustainability-related goals, policies, and action plans
(3) Oversight and evaluation of sustainability implementation
II. Does the Company conduct risk assessment for environmental, social and corporate governance issues related to the Company’s operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?	V		This disclosure covers the company’s sustainable development performance at its major locations from January to December 2025. The boundary for risk assessment is centered on the Company, primarily covering operations in Taiwan. Based on the relevance to our core business and the extent of impact on major topics, our subsidiaries, Rexon Technology Co., Ltd. and Power Tool Specialists Inc., are also included in this scope.	No significant deviation

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Implementation item	Implementation status (Note 1)
	Yes	No	Summary
			The Sustainability Committee gathers opinions from internal and external stakeholders through diverse channels, considering domestic and international research reports as well as industry trends. By combining these with operational assessments from various departments and subsidiaries, the committee conducts materiality analyses and prioritizes issues to identify sustainability themes with a critical impact on the company. Simultaneously, the company has established risk and opportunity assessment mechanisms for each major theme and formulated corresponding management policies and action plans to strengthen operational resilience and mitigate potential impacts.
Based on the materiality analysis results for 2025, the Company's major themes are summarized into five main axes, with corresponding risks and management measures explained as follows:
Geopolitical Risks: Primarily involve the impact of political intervention on sales or costs in key product markets. All departments collaborate in management through weekly Vice President-level meetings and monthly Business Performance Review meetings to develop countermeasures against abnormal fluctuations.
Exchange Rate Fluctuations: Primarily involve exchange gains or losses due to differences in the currencies of receipts and payments.
Led by the General Management Office, countermeasures are proposed and reported to the Chairman and General Manager during periods of abnormal fluctuation.
Product Risks: Primarily involve products failing to meet customer quality standards and low production yields. Led by the Technical Department, these issues are reviewed at weekly quality meetings and reported monthly at Vice President-level meetings.
Market Risks: Primarily involve high sales concentration with a single customer, significant changes in customer management teams, the potential emergence of substitute products, and shifts in consumer trends. Led by the Sales Department, these are managed through weekly Vice President-level meetings and monthly Business Performance Review meetings to address abnormal fluctuations.
R&D and Technology Risks: Primarily involve a lack of new technologies or materials, making it difficult to improve process precision or reduce costs, slow product innovation, reduced customer cooperation interest, and longer-than-expected development times.
Led by the Technical Department, these are managed and proposed through weekly Vice President-level meetings and monthly Green Innovation Committee meetings.

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Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
	Yes	No	Summary
III. Environmental issues
(I) Does the Company have an appropriate environmental management system established in accordance with its industrial characteristics?	V		(I) The Company implemented the ESH management system and acquired the ISO14000 certificate in 1999, and ISO14001 and ISO-45001 certificate in 2023. The recycle, disposal and use of waste are performed in accordance with the laws and regulations governing the environmental management system and environmental protection. We review the implementation effectiveness whenever necessary and make improvement continually. A environment and safety department has been set up as the dedicated management unit.	No significant deviation
(II) Is the Company dedicated to enhancing energy efficiency and using recycled materials with low impact on the environment?	V		(II) The Company is dedicated to enhancing energy efficiency and using recycled materials with low impact on the environment:
1. Improve energy efficiency, reduce energy consumption and emissions, minimize environmental impact and lower operating costs, while enhancing corporate resilience and competitiveness, helping to meet customer and international market requirements for low-carbon supply chains. This includes promoting the establishment of energy management systems, regularly reviewing energy data such as electricity and fuel consumption; implementing energy-saving projects (such as equipment improvement, lighting replacement, and production line optimization); setting annual carbon reduction and energy-saving targets and tracking improvement results; analyzing greenhouse gas inventory results and proposing reduction strategies; and gradually introducing renewable energy and high-efficiency equipment.
2. Deeply integrate sustainability thinking into the entire product lifecycle, from source management in the early stages of R&D and material conservation in the production process to energy efficiency improvement at the product end and waste reduction in packaging materials at the end, striving to reduce the environmental impact at each stage. Implement environmental sustainability goals through data-driven management and continue research on the application of low-carbon materials and circular design in 2025.	No significant deviation
(III) Does the Company assess the current and future risks and opportunities which climate change potentially brings to the Company? Does the Company take measures in response to climate-related issues?	V		(III) Regarding climate change-related risk management, the Company's Board of Directors serves as the highest governance body to oversee and implement the measures. The ESG Management Committee under the Board of Directors promotes and regularly reports to the Board of Directors on the Company's current and future potential risks and	No significant deviation

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Implementation item	Implementation status (Note 1)
	Yes	No	Summary
(IV) Does the Company make statistics of the greenhouse gas emissions, water consumption and total waste weight in the past two years? Does the Company have policies for energy saving and carbon reduction, reduction of greenhouse gas emissions, reduction of water consumption, or other waste management policies?	V	(IV)	opportunities, and the corresponding countermeasures are disclosed in the Company's sustainability report.
In 2025, the Company commissioned SGS (SGS Taiwan Ltd.) to perform GHG inventory verification. In addition to acquiring the ISO 14064-1 certificate, we statistically calculate the GHG emissions and the weight of the waste every year, and establish the annual reduction goal to optimize the environmental performance year by year.
Rexon is committed to responsible water resource management, adhering to domestic and international regulations on water pollution prevention and resource sustainability to ensure that its operations do not impose a burden on the environment. The company's water source is tap water supplied by Taiwan Water Corporation, originating from Liyutan Reservoir. Since the plant does not have a water storage and reuse system, the water intake equals the actual water consumption, primarily for employee domestic use. The company's processes do not involve large water consumption and do not generate industrial wastewater; domestic wastewater discharged from the plant is subject to long-term monitoring and management by a legally qualified third-party environmental monitoring agency to ensure that the discharged water meets relevant standards before being released into local surface water bodies.
To assess the water resource risks of its operating sites, the company refers to the World Resources Institute (WRI) Aqueduct water risk map to conduct risk assessments of the operating locations. The results show that the Dali Industrial Zone is classified as low to moderate water risk, indicating that Rexon currently does not have a significant or immediate negative impact on the local water environment. Furthermore, an environmental sensitivity assessment determined that none of Rexon's operating sites are adjacent to areas with high biodiversity conservation value, and the potential ecological impact is considered insignificant.
Rexon has established a "Waste Management Regulations," which are strictly followed and implemented by all employees. After waste sorting, the main outputs are recyclable metals, waste plastics, waste cardboard boxes, and other resource-based waste, as well as non-recyclable hazardous and non-hazardous waste. These are treated through incineration,	No significant deviation

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Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
	Yes	No	Summary
			thermal treatment, and other methods, ensuring that final disposal does not pollute the external environment. Rexon conducts risk assessments in accordance with ISO 14001 environmental standards and has established reduction and recycling management measures. In accordance with the Waste Management Regulations, environmental control standards are followed during waste disposal. Simultaneously, the company is increasingly concerned about the environmental impact of waste from upstream and downstream suppliers and is committed to collaborating with suppliers to achieve strategies for reducing and mitigating environmental impact. Note: The total non-hazardous waste statistics for 2025 are based on incineration projects.
IV. Social issues (I) Does the Company have management policies and procedures in accordance with relevant regulations and international human rights conventions?	V		(I) Rexon is committed to following international human rights standards, including the United Nations Universal Declaration of Human Rights, the United Nations Global Compact and the International Labor Organization Declaration on Fundamental Principles and Rights at Work, and complying with relevant laws and regulations. We strive to maintain harmonious labor-management relations, achieve equal rights in the workplace, ensure health and safety in the workplace, and improve the physical, mental and spiritual balance of our employees. We have established company management regulations, including "Work Rules", "Prevention Plan for Illegal Harm in Performance of Duties" and "Human Resources Management Regulations", which clearly declare the protection of employees' human rights. This includes basic legal requirements, freedom of employment, humane treatment, and prohibitions against unfair discrimination and sexual harassment. In order to strengthen employees' awareness of human rights and protect their rights from infringement, we have established a diversified and effective communication mechanism, a sound salary and benefits system, and provided training and development opportunities and courses. The human rights management policies and specific plans are summarized as follows: Rexon established a Gender Equality Committee in 2023. In 2025, the Gender Equality Committee held four meetings to ensure the review and updating of existing policies and to continuously monitor and evaluate their effectiveness. As of the end of December 2025, neither Rexon nor Rexon	No significant deviation

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Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
		Yes	No		Summary
(II)	Does the Company establish and implement reasonable employee benefit measures (including remuneration, leave and other benefits)? Is the operating performance or results properly reflected in the remuneration for employees?	V		Technology had received any complaints of employment discrimination. This further solidified the company's commitment to sustainable development. In response to the high level of concern regarding human rights issues in the global supply chain, the company initiated an upgrade of its human rights system at the end of 2025. A team of professional consultants was invited to conduct specialized explanations and suitability assessments of international human rights norms and social responsibility standards, and to identify gaps between the current system and international standards, gradually building a management system that meets the requirements of international clients. This work was not done in response to a single client's request, but rather based on the company's long-term sustainable development strategy, proactively establishing a human rights management system that conforms to international standards, demonstrating the company's positive commitment to social responsibility.
(II) The Company has established and implemented reasonable employee benefit measures (including remuneration, leave and other benefits). The employee remuneration policy is determined in consideration of the personal capability, contribution to the Company, performance, competitiveness, and the future operation. According to Article 25 of the Articles of Incorporation, if there is a profit in a fiscal year, No less than 5% should be allocated to employee compensation, and no less than 1% should be allocated to adjust salaries or distribute compensation to frontline employees. When the allocated amount is used as compensation for frontline employees, it can be included in the employee compensation allocation amount. It may be distributed in shares or cash as resolved by the Board of Directors. The employees of the subsidiaries who meet certain criteria are entitled to receiving the remuneration. The board of directors approved a 14% increase in employee compensation for 2025, to appropriately reflect operating performance or results in employee remuneration.
(III) The company has obtained ISO 45001 certification. The company has followed “Occupational Safety and Health Act” and set up qualified first-aid personnel and adequate first-aid kits, and arranged education and training for new employees, the personnel involved in changes of jobs, and newly appointed managerial officers in charge of safety and	No significant deviation
(III)	Does the Company provide employees with a safe and healthy work environment, and regularly provide them with safety and health education?	V			No significant deviation

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Implementation item	Implementation status (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons for such deviations
	Yes	No	Summary
(IV) Does the Company have effective programs for development and training regarding employees' career skills?	V		health education and training. Also, we have set up breastfeeding rooms pursuant to the “Act of Gender Equality in Employment”. The Company has established an emergency response team, defined the emergency response process, and formulated the Industrial Safety and Health Work Rules to cope with emergencies including power failure, water supply failure, fire, flood, typhoon, earthquake, personal injury (that may lead to temporary or permanent disability, food poisoning, statutory infectious disease (SARS), water pollution, and other emergencies that may lead to loss of personal life or property and environmental pollution. The information on the measures for protection of the work environment and personal safety.	No significant deviation
(V) With respect to the issues related to products and services, such as customer health and safety, customer privacy, marketing and labeling, does the Company conform to the relevant regulations and international standards and establish the relevant rights protection policies and complaint procedures for the consumers or customers?	V		(IV) The Company has set up the HR Division, established effective employee career development and training plans, and implemented internal and external education and training. In 2025, intensive training for talent echelons and a mentor-apprentice case experience learning model, the company has been able to adapt more flexibly to future challenges and ensure long-term competitiveness.	No significant deviation
(VI) Does the Company have a supplier management policy that requires suppliers to comply with the regulations concerning environmental protection, occupational safety and health or labor rights? What’s the status of its implementation?	V		(VI) Promote the supply chain's understanding and practice of sustainability, fully implement evaluation mechanisms, and strengthen the sustainability capabilities of the supply chain. In 2025, a total of 164 suppliers completed the signing of the "Supplier Code of Conduct," representing 72% of the annual total procurement value. Additionally, 181 suppliers completed the "Social Responsibility Self-Assessment," which covers four major dimensions: corporate governance, employee rights, occupational health and safety, and environmental protection. The assessment results indicated that 97% of these vendors achieved a rating of "Good" or above. Furthermore, 20 new suppliers underwent the "Sustainability Dimension Evaluation," with 100% of the newly added suppliers that year meeting the target scores. In 2025, two annual supplier conferences were held in conjunction with sustainability	No significant deviation

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Implementation item	Implementation status (Note 1)
	Yes	No	Summary
			initiative meetings. During these conferences, ESG principles were promoted and advocated to suppliers through three main themes: "Global Sustainability Trends," "Rexon's Sustainability Progress," and "Sustainability Initiative Communication."
V. Does the Company use internationally accepted standards or guidelines for preparation of reports as reference in preparing the corporate sustainability report and other reports disclosing non-financial information of the Company? Are assurance or guarantee opinions from any third-party verifying agent acquired for the aforementioned reports?		V	經核對您提供的中英文段落，內容在數據（2026/115年）、專業準則（GRI, TCFD, SASB, ISSB, SDGs, AA1000）以及驗證機構（SGS）等關鍵資訊上均完全一致。
為了使英文版更符合國際年報的書寫專業度與修辭流暢性，建議對部分句式進行微調：
建議修正處：
動詞一致性：中文提到「依據」、「遵循」、「參照」，英文建議使用 "in accordance with" 或 "adheres to" 以展現更高程度的合規性。
時態一致性：由於 2026 年永續報告書的查證是「預計」在 5 月完成，英文建議統一使用未來式或現在進行式。
產業別翻譯：SASB 的產業別建議使用其官方慣用的標準名稱，例如 "Household Appliances"。
專業術語優化：
「第一類型中度保證等級」：建議為 "Type 1, Moderate Level of Assurance"。
「當責性原則」：建議為 "Accountability Principles"。
修改後的英文建議版本：
The preparation of our sustainability reports is primarily conducted in accordance with the Global Reporting Initiative (GRI) Standards 2021, which serves as the core framework for sustainability disclosure, comprehensively presenting the company's performance across economic, environmental, and social dimensions.
Simultaneously, we comply with the "Regulations Governing the Preparation and Filing of Sustainability Reports by Listed Companies" set by the Taiwan Stock Exchange (TWSE) to ensure regulatory compliance and enhance transparency. Regarding climate change, we reference the Task Force on Climate-related Financial Disclosures (TCFD) framework proposed by the Financial Stability	No significant deviation

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Implementation item	Implementation status (Note 1)
	Yes	No	Summary
			Board (FSB) to gradually establish mechanisms for identifying, assessing, and managing climate risks and opportunities. Furthermore, to enhance industry relevance and decision-making value, our company references the integrated disclosure framework of the International Sustainability Standards Board (ISSB) and follows the Sustainability Accounting Standards Board (SASB) standards. We disclose financially material sustainability issues specifically for the "Household Appliances" and "Toys and Sporting Goods" industries. In alignment with global trends, we also refer to the United Nations (UN) Sustainable Development Goals (SDGs) to examine the connection between our operations and global issues, incorporating these into our strategic planning to strengthen our long-term sustainability contribution. Our sustainability report to be published in 2026 is being verified by the international agency SGS Taiwan Ltd. in accordance with the AA1000 Assurance Standard (v3) Type 1, Moderate Level of Assurance. This report ensures compliance with GRI 2021 guidelines and the AA1000 Accountability Principles (2018). The verification process is currently underway; a formal assurance statement is expected to be obtained in May 2026 and will be included in the appendix of the 2025 Sustainability Report (Note: refers to the report published in 2026).
VI. In the event that the Company has established sustainable development best practice principles based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies," please describe the differences between the implementation and the established principles: The Company implement the corporate social responsibility in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies."
VII. Other information that enables a better understanding of the Company's promotion of sustainable development: For the Company's various sustainable development operations, please refer to the Company's website (https://www.rexon.net/) and related publications (such as: Annual Sustainability Report, etc.).

Note 1: When "yes" is selected for the implementation status, please specify the important policies, strategies and measures taken and the implementation status thereof; on the other hand, if "no" is selected, please describe the deviations, reasons and plans regarding the future policies, strategies and measures in the column of "deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and reasons thereof."
Note 2: The materiality principle means that the issues related to the aspects of environment, society and corporate governance have material impact on the Company's investors and other stakeholders.
Note 3: As for the disclosure method, refer to the best practice references on the website of the Corporate Governance Center of TWSE.

Two. Corporate Governance Report

(VI). Climate-related information of TWSE/TPEx listed companies

Climate-related information and implementation status

Item	Implementation status
1. Description of the monitoring and governance that the Board of Directors and management perform with respect to the climate-related risks and opportunities.	Our company designates the Board of Directors as the highest decision-making body for climate change risk management, responsible for reviewing policies, approving major decisions, and supervising oversight mechanisms. Under the Board, a Sustainability Committee has been established; it is convened by the Chief Sustainability Officer (CSO) and composed of the Chairman and independent directors. This committee is responsible for strategic oversight and decision-making, submitting an annual assessment report to the Board. At the executive management level, the ESG Management Committee (composed of the CSO and 12 senior managers) is tasked with identifying climate-related risks and opportunities, formulating countermeasures, and tracking implementation progress. This committee reports its findings and progress to the Sustainability Committee twice a year.
2. Description of the short-term, medium-term and long-term impact of the identified climate risks and opportunities on the business, strategy and finance of the Company.	Risks include: Medium-term: Increased raw material costs, impacting manufacturing costs and supply chain stability. Short-term: R&D expenditures for low-carbon transformation and compliance with greenhouse gas (GHG) reduction regulations, leading to higher operating and regulatory costs. Long-term: Implementation of carbon pricing mechanisms (such as carbon fees) and the increasing frequency of extreme weather events, which may lead to operational disruptions and physical asset damage. Opportunities include: Short-term: Business growth in emerging markets, such as drones and E-Bikes. Medium-term: Development of low-carbon products to attract new customer segments, alongside the implementation of renewable energy and energy-saving measures to optimize the overall energy cost structure.
3. Description of the impact of extreme climate events and transformation actions on the finance.	Extreme Weather: Severe typhoons may lead to operational disruptions (resulting in revenue loss), occupational injuries (incurring compensation and compliance costs), and supply chain interruptions. Transformation Initiatives: The adoption of low-carbon materials and innovative processes will lead to increased R&D expenses and capital expenditures (CAPEX), which may impact gross profit margins in the short term. However, in the long term, these initiatives are expected to mitigate the risk of order loss and strengthen overall market competitiveness. Energy Transition: We anticipate an increase in capital expenditures for initiatives such as solar power installations; however, these investments are expected to be offset by a reduction in long-term energy-related operating expenses.
4. Description of how the climate risk identification, assessment and management processes are integrated in the overall risk management system.	Our company follows the TCFD framework for the identification, assessment, and management of climate-related risks. The Sustainability Office consolidates risk factors from various departments to evaluate their likelihood and impact levels. Subsequently, responsible units develop response strategies, quantify financial impacts, and set specific targets. This process is fully integrated with the company's comprehensive risk management system, with results regularly reported to the Sustainability Committee and the Board of Directors. Furthermore, relevant risk indicators are embedded into the annual budget and business strategic plans.
5. If scenario analysis is used to assess the resilience against climate change risks, the scenario, parameter, assumption, and analysis factor used as well as the major impact on finance shall be specified.	Scenarios and Parameters: Physical risks are assessed using the SSP1-2.6 (limiting warming to below 2°C) and SSP5-8.5 (warming exceeding 4°C) scenarios. Transition risks are evaluated using the NGFS "Net Zero 2050" and "Fragmented World" scenarios. Assumptions and Analysis Factors: Key factors considered include population trends, GDP growth, the stringency of climate policies, the pace of technological development, and maximum 24-hour rainfall intensity. Financial Impact: The assessment indicates that the projected financial impact of transition risks accounts for less than 5% of total assets. Regarding physical risks, analysis shows that both our own operating sites and major suppliers are currently located outside of flood-prone areas.
6. If there is a transformation plan in response to the management of the climate-related risks, describe the contents of the plan, the indicators used for identification and management of physical and transformation risks, and the goals.	Rexon has realigned its sustainability mindset, moving from "regulatory compliance" to "strategic leadership," and is implementing its transformation plan through the following concrete actions: Green Operations and Lean Transformation: Internally, we promote process energy efficiency and smart energy management. Externally, we collaborate with suppliers to eliminate the "Seven Green Wastes" and reduce product carbon footprints from the R&D stage by establishing a comprehensive low-carbon material database. Global Supply Chain Resilience: We are expanding overseas production bases in Thailand and Vietnam, strengthening our ability to respond to global fluctuations through diversified manufacturing locations. We have set a target for sustainable products to account for 25% of total revenue by 2030 and 75% by 2050, with at least 12 new low-carbon material profiles added to our database annually. Physical Risk Mitigation: To strengthen supply chain resilience against physical risks, we commit to increasing the second-source supplier parts ratio for our top 10 product models by 3% annually.
7. If internal carbon pricing is used as a planning tool, the pricing basis shall be specified.	Rexon has realigned its sustainability mindset, moving from "regulatory compliance" to "strategic leadership," and is implementing its transformation plan through the following concrete actions: Green Operations and Lean Transformation: Internally, we promote process energy efficiency and smart energy management. Externally, we collaborate with suppliers to eliminate the "Seven Green Wastes" and reduce product carbon footprints from the R&D stage by establishing a comprehensive low-carbon material database. Global Supply Chain Resilience: We are expanding overseas production bases in Thailand and Vietnam, strengthening our ability to respond to global fluctuations through diversified manufacturing locations. We have set a target for sustainable products to account for 25% of total revenue by 2030 and 75% by 2050, with at least 12 new low-carbon material profiles added to our database annually. Physical Risk Mitigation: To strengthen supply chain resilience against physical risks, we commit to increasing the second-source supplier parts ratio for our top 10 product models by 3% annually.

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	physical risks, we commit to increasing the second-source supplier parts ratio for our top 10 product models by 3% annually.
8. If any climate-related goals have been set, the information on the activities covered, the scope of greenhouse gas emissions, the planned schedule, and the progress which shall be achieved every year shall be specified; if carbon offset or renewable energy certificate (REC) is used to achieve related goals, the source and amount of the offset carbon credit or the number of the renewable energy certificate (REC) shall be specified.	Greenhouse Gas (GHG) Targets: The scope includes Scope 1 (direct emissions) and Scope 2 (indirect energy emissions), with 2021 (Year 110) as the base year. This year's GHG inventory covers the Taiwan headquarters, Rexon Technology, and the US subsidiary, P.T.S. In 2025, total emissions (Scope 1+2+3) were 61,121.647 tCO2e, with Scope 1 and Scope 2 combined totaling 3,379.7396 tCO2e (a decrease of approximately 2% compared to 2024). Our long-term goal is to achieve Net-Zero emissions across all operating sites by 2050 (Year 139). Renewable Energy Targets: Medium-term Goal: 15% green electricity usage at the Dali plant by 2030 (Year 119). Long-term Goal: Expand to 30% green electricity usage across the entire Group by 2050 (Year 139). 2025 Progress: Completed solar power installations at Buildings C and D. Total green electricity generation reached 1,882,132 kWh, accounting for 30.5% of the plant's total electricity consumption (6,161,152 kWh). Sustainable Product Targets: Short-term (2030 / Year 119): Sustainable products to account for 25% of total operating revenue. Long-term (2050 / Year 139): Sustainable products to account for 75% of total operating revenue.
9. The GHG inventory and assurance are provided in 1-1) separately.	Inventory Scope: The 2025 greenhouse gas (GHG) inventory covered the Taiwan production headquarters, Rexon Technology (subsidiary), and P.T.S. (US subsidiary). Following ISO 14064-1:2018 and ISAE 3410 standards, the inventory included seven GHGs: CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3. Verification and Assurance: The 2025 GHG inventory for Rexon Industrial, Rexon Technology, and PTS is expected to be completed by May 2026. A limited assurance report from KPMG (based on ISO 14064-1 and ISAE 3410) is expected to be obtained by May 2026, with the assurance process for 2025 data scheduled to begin in April 2026. 2025 Emissions Data: Total emissions were 61,121.647 tCO2e, with an emission intensity of 11.2791 tCO2e per NT$ million of revenue. Reduction Strategies: We are actively promoting energy conservation measures, such as improving energy efficiency, replacing high-energy-consumption equipment, and process optimization. We are also evaluating the adoption of renewable energy and expanding supply chain decarbonization. In collaboration with 10 satellite suppliers, we have achieved a reduction of 1,449.7 tCO2e and electricity savings of 2.93 million kWh. Consolidated Subsidiary Inventory Plan: Subsidiaries in Tongxiang (China) and Vietnam are expected to complete their 2026 (Year 115) GHG inventories and obtain verification by May 2027 (Year 116). In accordance with the Financial Supervisory Commission (FSC) requirements, all consolidated subsidiaries will complete GHG inventory and verification by 2029 (Year 118).

physical risks, we commit to increasing the second-source supplier parts ratio for our top 10 product models by 3% annually.

8. If any climate-related goals have been set, the information on the activities covered, the scope of greenhouse gas emissions, the planned schedule, and the progress which shall be achieved every year shall be specified; if carbon offset or renewable energy certificate (REC) is used to achieve related goals, the source and amount of the offset carbon credit or the number of the renewable energy certificate (REC) shall be specified.

Greenhouse Gas (GHG) Targets: The scope includes Scope 1 (direct emissions) and Scope 2 (indirect energy emissions), with 2021 (Year 110) as the base year. This year's GHG inventory covers the Taiwan headquarters, Rexon Technology, and the US subsidiary, P.T.S. In 2025, total emissions (Scope 1+2+3) were 61,121.647 tCO2e, with Scope 1 and Scope 2 combined totaling 3,379.7396 tCO2e (a decrease of approximately 2% compared to 2024). Our long-term goal is to achieve Net-Zero emissions across all operating sites by 2050 (Year 139). Renewable Energy Targets: Medium-term Goal: 15% green electricity usage at the Dali plant by 2030 (Year 119). Long-term Goal: Expand to 30% green electricity usage across the entire Group by 2050 (Year 139). 2025 Progress: Completed solar power installations at Buildings C and D. Total green electricity generation reached 1,882,132 kWh, accounting for 30.5% of the plant's total electricity consumption (6,161,152 kWh). Sustainable Product Targets: Short-term (2030 / Year 119): Sustainable products to account for 25% of total operating revenue. Long-term (2050 / Year 139): Sustainable products to account for 75% of total operating revenue.

9. The GHG inventory and assurance are provided in 1-1) separately.

Inventory Scope: The 2025 greenhouse gas (GHG) inventory covered the Taiwan production headquarters, Rexon Technology (subsidiary), and P.T.S. (US subsidiary). Following ISO 14064-1:2018 and ISAE 3410 standards, the inventory included seven GHGs: CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3. Verification and Assurance: The 2025 GHG inventory for Rexon Industrial, Rexon Technology, and PTS is expected to be completed by May 2026. A limited assurance report from KPMG (based on ISO 14064-1 and ISAE 3410) is expected to be obtained by May 2026, with the assurance process for 2025 data scheduled to begin in April 2026. 2025 Emissions Data: Total emissions were 61,121.647 tCO2e, with an emission intensity of 11.2791 tCO2e per NT$ million of revenue. Reduction Strategies: We are actively promoting energy conservation measures, such as improving energy efficiency, replacing high-energy-consumption equipment, and process optimization. We are also evaluating the adoption of renewable energy and expanding supply chain decarbonization. In collaboration with 10 satellite suppliers, we have achieved a reduction of 1,449.7 tCO2e and electricity savings of 2.93 million kWh. Consolidated Subsidiary Inventory Plan: Subsidiaries in Tongxiang (China) and Vietnam are expected to complete their 2026 (Year 115) GHG inventories and obtain verification by May 2027 (Year 116). In accordance with the Financial Supervisory Commission (FSC) requirements, all consolidated subsidiaries will complete GHG inventory and verification by 2029 (Year 118).

1-1. Company in the most recent two years GHG inventory and assurance

1-1-1 GHG inventory

For listed companies with paid-in capital of less than NT$5 billion, the company will implement the timeline of the Financial Supervisory Commission's "Roadmap for Sustainable Development of Listed Companies" and complete the greenhouse gas inventory by 2026.

Note 1: Direct emissions (Category 1, i.e., emissions directly from sources owned or controlled by the company), energy-related indirect emissions (Category 2, i.e., indirect greenhouse gas emissions from input electricity, heat, or steam), and other indirect emissions (Category 3, i.e., emissions generated by the company's activities, not energy-related indirect emissions, but from emission sources owned or controlled by other companies).

Note 2: The scope of data on direct and energy-related indirect emissions shall be in accordance with the schedule stipulated in Article 10, Paragraph 2 of this guideline. Information on other indirect emissions may be disclosed voluntarily.

Note 3: Greenhouse gas inventory standards: Greenhouse Gas Protocol (GHG Protocol) or ISO 14064-1 published by the International Organization for Standardization (ISO).

Note 4: The intensity of greenhouse gas emissions can be calculated per unit of product/service or turnover, but data calculated in turnover (NT$ million) should be specified at least.

1-1-2 GHG assurance

The statement shall describe the confidence status for the two most recent years up to the date of publication of the annual report, including the scope of confidence, the confidence body, the confidence criteria and the confidence opinion.

For listed companies with paid-in capital of less than NT$5 billion, we will follow the timeline of the Financial Supervisory Commission's "Roadmap for Sustainable Development of Listed Companies" and complete the disclosure of reliable information by 2028.

Note 1: The procedures stipulated in Article 10, Paragraph 2 of this Guideline shall be followed. If the company fails to obtain a complete greenhouse gas confidence opinion by the date of publication of the annual report, it should indicate that "the complete confidence information will be disclosed in the sustainability report." If the company has not prepared a sustainability report, it should indicate that "the complete confidence information will be disclosed on the Public Information Observatory," and disclose the complete confidence information in the following year's annual report.

Note 2: The confidence institution should comply with the relevant regulations for sustainability report confidence institutions established by the Taiwan Stock Exchange Corporation and the Taiwan Stock Exchange Center.

Note 3: For the disclosure content, please refer to the Best Practices Examples on the Taiwan Stock Exchange Corporate Governance Center website.

1-2. Greenhouse Gas Reduction Targets, Strategies, and Specific Action Plans

It should describe the base year for greenhouse gas reduction and its data, reduction targets, strategies and specific action plans, and the status of achieving the reduction

Two. Corporate Governance Report

targets.
For listed companies with paid-in capital of less than NT$5 billion, the company will follow the timeline of the Financial Supervisory Commission's "Roadmap for Sustainable Development of Listed Companies" and complete the disclosure by 2027.

Note 1: The procedures stipulated in Article 10, Paragraph 2 of this Standard shall be followed.
Note 2: The base year shall be the year in which the consolidated financial statement audit was completed at the consolidation reporting boundary. For example, according to Article 10, Paragraph 2 of this Standard, companies with capital of NT$10 billion or more should complete the audit of their consolidated financial statements for the year 2014 by 2025. Therefore, the base year is 2025. If a company has completed its consolidated financial statement audit earlier, the earlier year may be used as the base year. Furthermore, the data for the base year may be calculated using the average of a single year or several years.
Note 3: For further disclosure, please refer to the Best Practice Examples on the Taiwan Stock Exchange Corporate Governance Center website.

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(VII). Implementation of corporate ethical management and measures taken: Implementation status of corporate ethical management, deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and reasons for such deviations

Evaluation item	Operation (Note 1)			Reasons for the deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
I. Development of ethical management policies and programs
(I) Are the Company’s guidelines on corporate conduct and ethics provided in internal policies and disclosed publicly? Have the Board of Directors and the senior management team demonstrated their commitments to implement the policies?	V		(I) The Company has established the “Ethical Corporate Management Best Practice Principles” and the “Code of Ethical Conduct”, and has disclosed them on the website of the Company and the MOPS. The ethics are our core value and the root for operation of a company. These Principles are applicable to the directors, managerial officers, employees and other related personnel of the Company.	No significant deviation
(II) Has the Company established an assessment mechanism for the risk of dishonesty behaviors? Does the Company regularly analyze and assess business activities with a higher risk of dishonesty in the business scope, and formulate a plan to prevent dishonesty behaviors, which at least covers Paragraph 2 of Article 7 in the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”?	V		(II) The Code of Ethical Conduct explicitly specifies the prohibited behaviors, including the principles and criteria for recusal of conflict of interest, gifts, entertainment, and political and charity donations, and the principles for review of the violation of ethical conduct.	No significant deviation
(III) Does the Company establish procedures, behavioral guidelines, disciplinary actions and complaint systems in action plans against unethical conduct? Are the plans implemented thoroughly and reviewed and modified regularly?	V		(III) The “Procedures for Ethical Management and Guidelines for Conduct” of the Company explicitly specifies the plans for prevention of unethical conduct, including procedures, behavioral guidelines,	No significant deviation

Two. Corporate Governance Report

Evaluation item	Operation (Note 1)			Reasons for the deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
			disciplinary actions and complaint systems. The Company has established the “Whistleblowing Case Management Regulations”. The Audit Office is responsible for setting up internal and external whistleblowing channels and handling procedures for the Company.
II. Implementation of ethical management
(I) Does the Company assess the ethics of all counterparties it has business relationships with? Are there any clauses of ethics in the agreements the Company enters into with business partners?	V		(I) As the “Rexon Group Employee Code of Conduct” of the Company specifies, the Company shall fully understand the ethical management of the counterparty with whom an agreement is entered into, and it is advisable to incorporate ethical management in the provisions of the agreement or explicitly specify ethical requirements.	No significant deviation
(II) Has the Company set up a dedicated unit in charge of the implementation of the ethical corporate management under the Board of Directors? Does the unit report to the Board of Directors regularly (at least once a year) on the ethical management policy, the plan for prevention of unethical conduct, and the supervision of the implementation?	V		(II) The Company’s Sustainable Development Committee is responsible for promoting honest business practices and regularly (at least once a year) reports to the Board of Directors on its honest business practices policies, measures to prevent dishonest behavior, and the implementation status. The report on the implementation status was submitted to the Board of Directors on February 26, 2026.	No significant deviation
(III) Does the Company have policies to prevent conflict of interest, provide adequate communication channels, and implement the policies?	V		(III) The Company has expressed the concern about conflict of interest in the ethical management policy. The conditions / criteria of the conflict of interest is specially described in our Code of Ethical Conduct and relevant personnel are requested to avoid it. If a	No significant deviation

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Two. Corporate Governance Report

Evaluation item	Operation (Note 1)			Reasons for the deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
(IV) Has the Company established effective accounting and internal control systems for the implementation of ethical management? Does the internal audit unit of the Company prepare audit plans according to the assessment result of unethical conduct risks, and audit the implementation of the unethical conduct prevention plans and the compliance thereto accordingly, or hire external auditors to audit such execution and compliance?
(V) Does the Company organize internal or external education and training on a regular basis to maintain ethical management?	V		director has a conflict of interest with a proposal put forward by the board of directors, or with a legal entity he or she represents, he or she shall explain the important details of his or her conflict of interest at the board meeting. If there is any risk that the proposal may be detrimental to the company's interests, he or she shall not participate in the discussion or voting, and shall abstain from the discussion and voting, nor act as a proxy for other directors to exercise his or her voting rights.
(IV) Assessment and self-inspection of the internal control system, including the accounting system, are performed based on the ethical management principles with respect to the design and implementation effectiveness of the systems. Amendment is performed, if necessary. The audit unit is responsible for review.	No significant deviation
	V		(V) All the new employees must take pre-service training on the date when they take office,91 people have been implemented in 2025 years. The Company organizes education and training on ethical management regularly, 496 people have been implemented in 2025 years.	No significant deviation
III. Operation status of the whistleblowing system
(I) Has the Company set up a specific whistleblower reporting and reward system and a convenient reporting channel, and designated appropriate personnel to deal with reported	V		(I) The Company has established the “Ethical Corporate Management Best Practice Principles” and the whistleblowing and Appeals system. Misconduct can be	No significant deviation
received risk of the whistleblowing system
(II) Has the Company been able to provide the information to the company and provide the information to the company to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and	V		the company is able to provide the information to the company and provide the information to the company to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available, and	No significant deviation
	V		the company is able to provide the information to the company to the extent that the product is not available, and to the extent that the product is not available, and to the extent that the product is not available.	No significant deviation

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Evaluation item	Operation (Note 1)			Reasons for the deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
matters?
(II) Has the Company developed any standard investigation procedures for reported misconduct, defined follow-up actions to be taken following the completion of the investigation, or had confidentiality systems in place?	V		reported to the audit department in writing and by email.
(II) The Company has established the “Ethical Corporate Management Best Practice Principles” and the whistleblowing and Appeals system. The regulations clearly define the procedures for handling inspections and will be published on the company's website. All stakeholders can report through telephone, email, or other means, and dedicated personnel will be assigned to handle reports according to the category of stakeholders.
(III) Our company will keep the identity of whistleblowers and the content of their reports confidential and protected. Personnel involved in the investigation of reported cases shall not disclose such information without authorization, and whistleblowers will be protected from unfair treatment, retaliation or threats.	No significant deviation
(III) Has the Company adopted any measures to protect whistleblowers from being improperly treated due to whistleblowing?	V			No significant deviation
IV. Enhancement of information disclosure
(I) Has the Company disclosed its ethical management principles and implementation results on the website and MOPS?	V		The Company has made the disclosure on our website.	No significant deviation
V. In the event that the Company has established ethical management principles based on the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies,” please describe its current practices and any deviations from the established principles:
Our company has established its own "Code of Conduct for Honest Business Operations" in accordance with the "Code of Conduct for Listed Companies". The operation and implementation of our company's Code of Conduct for Honest Business Operations is no different from the established code.
VI. Other important information that is helpful to understand the implementation of the ethical corporate management: (e.g. review and amendment of the Ethical Corporate Management Best Practice Principles established by the Company): None

(VIII). Other information that enables a better understanding of the Company’s corporate

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Two. Corporate Governance Report

governance:

(1). The Company has established the “Material Internal Information Handling Procedure” to govern the handling and disclosure mechanism for material internal information. It is established as a standard for the directors, managerial officers and employees to follow.

(2). Continuing education of directors and managerial officers

Title	Name	Date of course	Organizer	Title of course	Hours of course
Independent director	Wu Chwan-Chyuan	2025/02/24	Taiwan Corporate Governance Association	Understanding Related-Party Transactions and Unconventional Transactions Through Practical Case Studies	3
Chairman	Wang Kuan-Hsiang	2025/05/23	Taiwan Institute of Directors	Challenges and solutions for family business succession, mergers and acquisitions and anti-mergers	3
Independent director	Lee Cherng	2025/06/26	Taiwan Corporate Governance Association	Global Economic Situation and Industry Outlook	3
Chairman	Wang Kuan-Hsiang	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Director	Wang Kuan-Chuan	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Director	Huang Chin-Hsiang	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Director	Chen Chun-Wei	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Director	Kuo Pu-Chao	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Independent director	Lee Cherng	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Independent director	Wu Chwan-Chyuan	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Independent director	Chen Li-Tsung	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Director	Yang Ching-Chi	2025/08/07	Securities & Futures Institute (SFI)	The Trend of Sustainability Information Disclosure - The Release, Impact and Response of IFRS S1 and S2 Sustainability Disclosure Guidelines	3
Independent director	Lee Cherng	2025/08/12	Securities & Futures Institute (SFI)	Corporate Governance and Securities Regulations	3
Chairman	Wang Kuan-Hsiang	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing, Human Rights, and Integrity	3
Director	Wang Kuan-Chuan	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3
Director	Huang Chin-Hsiang	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3

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Two. Corporate Governance Report

Title	Name	Date of course	Organizer	Title of course	Hours of course
Director	Chen Chun-Wei	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	12
Director	Kuo Pu-Chao	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3
Independent director	Lee Cherng	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3
Independent director	Wu Chwan-Chyuan	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3
Independent director	Chen Li-Tsung	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3
Director	Yang Ching-Chi	2025/11/06	Securities & Futures Institute (SFI)	The Importance and Practical Cases of Enterprise Artificial Intelligence Applications	3
Independent director	Lee Cherng	2025/11/10	Taiwan Corporate Governance Association	In response to rapid industry changes, how can mergers and acquisitions/investments accelerate industrial transformation and upgrading	3
Independent director	Lee Cherng	2025/11/11	Securities & Futures Institute (SFI)	Corporate Governance and Securities Regulations	3

Continuing education of corporate governance officer

Title	Name	Date of course	Organizer	Title of course	Hours of course
corporate governance officer	He Hsiu-Yuan	2025/06/25	Taiwan Academy Of Banking AND Finance	Corporate Governance Forum	3
corporate governance officer	He Hsiu-Yuan	2025/07/21	Taiwan Corporate Governance Association	Greenhouse Gas Management Practical Workshop and Sustainable Development Promotion Meeting	9
corporate governance officer	He Hsiu-Yuan	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
corporate governance officer	He Hsiu-Yuan	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3

Continuing education of managerial officers

Name	Date of course	Organizer	Title of course	Hours of course
Lo Cheng-Chou, Cheng Mei-Ling, George Ku, Chang Yu-Ming, He Hsiu-Yuan, Peng Meng-Wei, Tank Chuang, Chiang Yao-Tsung, Kuo Pu-Chao, Hsu Sen-Yuan	2025/08/06	Accounting Research and Development Foundation	Analysis of Copyright Disputes and Related Legal Liabilities in the Artificial Intelligence (AI) Boom	3
Lo Cheng-Chou, Cheng Mei-Ling, George Ku, Chang Yu-Ming, He Hsiu-Yuan, Peng Meng-Wei, Tank Chuang, Chiang Yao-Tsung, Kuo Pu-Chao, Hsu Sen-Yuan	2025/11/03	Accounting Research and Development Foundation	Analysis of Three Key Practical Issues for Corporate ESG Sustainability: Greenwashing	3

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Two. Corporate Governance Report

(IX). The following matters related to the implementation of the internal control system shall be disclosed

Statement of Internal Control

Rexon Industrial Corp., Ltd.

Statement of Internal Control System

(All the applicable design implementations are effective and all the laws are observed.)

Date: February 26, 2026

Based on the result of the self-assessment with respect to the internal control system of Rexon Industrial Corp., Ltd. in 2025 we hereby declare the following:

I. The Company acknowledges that the Board of Directors and managerial officers are responsible for the establishment, implementation and maintenance of the internal control system, and we have established a system as such. The purpose of the system is to reasonably ensure that the effectiveness and efficiency of operations (including profits, performance, and security of assets), and the reliability, timeliness, transparency, and regulatory compliance of reporting, as well as the compliance with applicable laws, regulations, and bylaws are achieved.

II. Any internal control system has its inherent limitations. No matter how well an internal control system is designed, it can only provide reasonable assurance regarding the achievement of the above three objectives. Moreover, the effectiveness of an internal control system may be altered as a result of changes in the environment and circumstances. However, our internal control system has a self-monitoring mechanism, and we take corrective actions immediately once a nonconformity is identified.

III. The Company judges the effectiveness of the design and implementation effectiveness of the internal control system with reference to the judgment items for such effectiveness as specified in the "Regulations Governing Establishment of Internal Control Systems by Public Companies" (hereinafter referred to as the "Regulations"). The internal control systems are divided into the following five constituent elements according to the management and control process in terms of the judgment items for the internal control system provided for in the "Regulations": 1. control environment; 2. risk assessment; 3. control activities; 4. information and communications; and 5. monitoring activities. Each constituent element contains a number of items. For the items mentioned above, please refer to the "Regulations".

IV. The Company has adopted the aforementioned items to examine the effectiveness of the design and implementation of our internal control system.

V. Based on the result of the aforementioned assessment, the Company finds that, as of December 31, 2025 the design and implementation of our internal control (including supervision and management of subsidiaries) have worked well regarding the effectiveness and efficiency of the operation, the reliability, timeliness and transparency of reporting, and compliance with relevant rules and applicable laws and regulations, providing reasonable assurance that the above objectives have been achieved.

VI. The Statement will be the main part of the annual report and prospectus of the Company and publicly disclosed. If there is any misrepresentation, nondisclosure or other illegalities in the aforementioned disclosures, legal responsibilities specified in Articles 20, 32, 171 and 174 of the Securities and Exchange Act shall apply.

VII. The Statement was approved at the Board of Directors meeting on February 26, 2026. There were 8 directors present. All of them approved the contents of the Statement and none of them expressed dissent. This information is declared as an addition.

Rexon Industrial Corp., Ltd.

Chairman: Wang Kuan-Hsiang

General Manager: Lo Cheng-Chou

If review of the internal control system has been conducted by CPAs, the CPAs' review report must

Two. Corporate Governance Report

be disclosed: None.

Participation of internal auditors and CAO in training of an professional training institution or their acquisition of specified licenses:

Title	Name	Date of course	Organizer	Title of course	Hours of course
Accounting Manager	He Hsie-Yuen	2025/12/8~2025/12/9	Accounting Research and Development Foundation	Continuing Education Program for Accounting Supervisors of Securities Firms and Stock Exchanges	12
Audit officer	Chung Kun-Chang	2025/06/24	The Institute of Internal Auditors, Taiwan	"Compliance with Laws and Regulations" - Key Focus of Internal Control and Auditing Discussion	6
Audit officer	Chung Kun-Chang	2025/10/13	The Institute of Internal Auditors, Taiwan	Risk-oriented internal audit methods and practices	6
Auditor	Li Chien-Ying	2025/06/24	The Institute of Internal Auditors, Taiwan	"Compliance with Laws and Regulations" - Key Focus of Internal Control and Auditing Discussion	6
Auditor	Li Chien-Ying	2025/10/13	The Institute of Internal Auditors, Taiwan	Risk-oriented internal audit methods and practices	6

(X). Major resolutions of the shareholders' meeting and Board of Directors in the most recent year up to the publication date of the annual report:

Major resolutions of the shareholders' meeting and their implementation status in 2025

Time	Major resolutions of the shareholder's meeting	Implementation status
2025/05/22	Matters to be Ratified
	(I) Approval of the ratification of 2024 final accounting reports.	Implemented as resolved.
	(II) Approval of the ratification of earnings distribution for 2024.	Implemented as resolved.
	Discussions
	(I) Amendment of the “Articles of Incorporation” of the Company	Declaration announcement at May 22, 2025

Major resolutions of the Board of Directors and their implementation status:

Date	Major resolutions of the Board of Directors	Implementation status
2025/1/21	01. Last meeting minutes and implementation status.	01. Reported
	02. Proposal for to Invest and establish a subsidiary in Vietnam	02. Approved and announced
2025/2/26	01. Last meeting minutes and implementation status.	01. Reported.
	02. Internal audit activity report.	02. Reported.
	03. Report on the liability insurance for the directors of the Company	03. Reported.
	04. Report on the performance evaluation of the Board of Directors in 2024	04. Reported.
	05. Report on the Progress of Sustainable Development	05. Reported.
	06. Proposal for the distribution of the remuneration to the employees and directors in 2024, Please proceed to discuss	06. Approved.
	07. Proposal for Definition and Scope of Frontline Employees. Please proceed to discuss	07. Approved.
	08. Proposal for the “Statement of Internal Control System”. Please proceed to discuss	08. Approved and announced
	09. .Report on the assessment of CPA independence. Please proceed to discuss	09. Approved
	10. The plan is to formulate "General Principles for Pre-Approved Non-Confirmation Service Policies", Please proceed to discuss.	10. Approved
	11. Proposal for to acquire the land use rights on behalf of the unestablished Vietnam subsidiary. Please proceed to discuss	11. Approved and announced
	12. Proposal for 2024 final accounting reports and establishment of 2025 business plan. Please proceed to discuss	12. Approved and submitted to the shareholders' meeting.
	13. Proposal for earnings distribution for 2024. Please proceed to discuss	13. Approved and submitted to the shareholders' meeting.
	14. Proposal for bank credit facility. Please proceed to discuss	14. Approved.
	15. Amendment of the “Articles of Incorporation” of the Company, Please proceed to discuss	15. Approved and submitted to the shareholders' meeting.
	16. Proposal for matters on convention of 2024 general meeting of shareholders. Please proceed to discuss	16. Approved and submitted to the shareholders' meeting.
2025/5/7	01. Last meeting minutes and implementation status.	01. Reported.
	02. Internal audit activity report.	02. Reported.
	03. 2025 Q1 financial reports. Please proceed to discuss	03. Approved and announced.
	04. Proposed Amendments to Certain 'Internal Control Systems' and 'Internal Audit Implementation Rules'. Please proceed to discuss	04. Approved.
	05. 2024 Directors' remuneration distribution plan. Please proceed to discuss	05. Approved.
	06. 2024 Manager employee remuneration distribution plan. Please proceed to discuss	06. Approved.
	07. Proposal for bank credit facility. Please proceed to discuss	07. Approved.
	08. Proposed Implementation of Bonus-Based Employee Stock Ownership Trust Plan and Managerial Participation in Bonus-Based Employee Stock Ownership Trust Case. Please proceed to discuss	08. Approved.
2025/8/6	01. Last meeting minutes and implementation status.	01. Reported.
	02. Internal audit activity report.	02. Reported.
	03. Short-swing profit recovery report	03. Reported.
	04. The 2024 Sustainability Report. Please proceed to discuss	04. Approved
	05. 2025 Q2 financial reports. Please proceed to discuss.	05. Approved and announced
	06. Proposal for bank credit facility. Please proceed to discuss	06. Approved.

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Two. Corporate Governance Report

Date	Major resolutions of the Board of Directors	Implementation status
2025/11/3	01. Last meeting minutes and implementation status.	01. Reported
	02. Internal audit activity report.	02. Reported
	03. 2025 Stakeholder Identification and Communication and Major Thematic Report	03. Reported
	04. 2025 Climate-Related Financial Disclosures Governance Report	04. Reported
	05. Report on the implementation of corporate integrity management	05. Reported
	06. Report on the Implementation Status of the Intellectual Property Management Plan Linked to Operational Objectives	06. Reported
	07. Proposal for the audit plans for 2026. Please proceed to discuss	07. Approved and announced
	08. Visa accountant public funding case. Please proceed to discuss	08. Approved
	09. 2025 Q3 financial reports. Please proceed to discuss	09. Approved and announced
	10. The proposal to rename the committee to "Compensation Committee" and amend the " Compensation Committee Organizational Regulations" Please proceed to discuss.	10. Approved and announced.
	11. proposal for bank credit facility. Please proceed to discuss.	11. Guaranteed
	12. Develop a corporate value enhancement plan. Please proceed to discuss.	12. Approved.

(XI). Records or written statements made by any director or supervisor who expressed dissent to major resolutions adopted by the Board of Directors in the most recent year up to the publication date of the annual report: None.

IV. Information on CPA professional fees

(I). The audit and non-audit fees paid to a certified public accountant or the CPA firm of a certified public accountant or its affiliate enterprises, and the scope of the non-auditing services (Table 2-4), shall be disclosed. The following particulars, if any, shall be disclosed:

Information on CPA professional fees

Unit: NTD thousand

CPA firm	Name of CPA	Audit period	Audit fee	Non-audit fee	Total	Remarks
KPMG Taiwan	Chen Cheng-Hsueh	2025.01.01~2025.12.31	3,000	1,007	4,007
	Chang Tzu-Hsin	2025.01.01~2025.12.31

Please describe the specific services under non-audit fees: Tax audit visas $400,000, industrial and commercial registration $249,000, transfer plan price and group master report service fees $198,000, and. temporary deposit verification visa $160,000.

(II). hen the Company changes the CPA firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year, the amounts of the audit fees before and after the change and the reasons shall be disclosed: N/A.

(III). If the audit fees are reduced by more than 10% as compared with the previous year, the amount, proportion and reason for reduction of the audit fee shall be disclosed. The aforementioned audit fees mean the professional fees that the Company pays to CPAs for the audit, review and secondary review of financial reports, and for the review of the financial forecast.: N/A

V. Information on change of CPAs

(I). About the former CPA:

Date of change	N/A
Reason and description of the change	N/A
Whether the appointment is terminated or not accepted by the client or CPA	Party	CPA	Client
	Voluntary termination of appointment
	Declination of appointment (renewal)
Opinions and reasons for issuance of audit reports in the most recent two years, excluding unqualified opinions	N/A
Any differences in opinions between CPA and issuer	Yes		Accounting principle or practice
			Disclosure of financial reports
			Audit scope or step
			Others
	None
	Description
Other disclosures (to be disclosed in accordance with Article 10(6)(1)(d) to (1)(g) of the Guidelines)	The CPAs,Kao-Shih-Hua and Chang Tzu-Hsin, of the KPMG Taiwan, were changed to the CPAs, Chen Cheng-Hsueh andChang Tzu-Hsin due to internal job adjustment of the said CPA firm.

(II). About the succeeding CPA

CPA firm	KPMG Taiwan
Name of CPA	ChenCheng-Hsueh, Chang Tzu-Hsin
Date of appointment	N/A
Matters and results of the consultation on accounting treatment methods or accounting principles for specific transactions and possible issuance of financial statements prior to the appointment	N/A
Written opinions of the succeeding CPA on the matters regarding which the former CPA has expressed dissent	N/A

Note: Since KPMG Taiwan conducted internal job adjustment, the change with respect to auditing and certification of financial reports started from 2024 Q1.

(III). The former CPA's written response to the matters in Article 10(5)(1) and (2)(c) of these Guidelines: N/A.

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Two. Corporate Governance Report

VI. CPA firm or its affiliates at which the Company’s President, General Manager, or managerial officers responsible for financial or accounting matters ever served as an employee in the most recent year

(I). Where the Company’s President, President, or managerial officers responsible for financial or accounting matters ever served as an employee in the most recent year at the CPA firm or any of its affiliates which the CPA works for, his/her name, title and the employment period at such firm or affiliate must be disclosed. The affiliate of the CPA firm which the CPA works for means the company or institution in which such CPA firm holds more than 50% of the shares or acquires a majority of director seats, or the company or institution which such CPA firm lists as its facilitate in the documents made public or published by such CPA firm: None.

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Two. Corporate Governance Report

VII. Details of equity transferred or pledged by directors, supervisors, managerial officers, or shareholders with more than 10% ownership interest in the most recent year up to the publication date of the annual report. Where the counterpart involved in the transfer or pledge of equity is a related party, the name of such counterpart, his/her relations with the Company, directors, supervisors, managerial officers, or shareholders with more than 10% ownership interest, and the number of shares acquired or pledged must be disclosed.

(I). Changes in equity of shareholders

Unit: Share

Title	Name	2025		As of March 22 for the current year
		Increase (decrease) in shares held	Increase (decrease) in shares pledged	Increase (decrease) in shares held	Increase (decrease) in shares pledged
Chairman	Wang Kuan-Hsiang	0	0	0	0
Director	Kun Forever Co., Ltd.
Representative: Wang Kuan-Chuan	0	0	0	0
Director
Concurrent Vice President	Huang Chin-Hsiang	0	0	0	0
Director	Chen Chun-Wei	76,000
(76,000)	0	0	0
Director
Concurrent Vice President	Kuo Pu-Chao	0	0	0	0
Director	Yang Ching-Chi	0	0	0	0
Independent director	Lee Cherng	0	0	0	0
Independent director	Wu Chwan-Chyuan	0	0	0	0
Independent director	Chen Li-Tsung	0	0	0	0
General Manager	Lo Cheng-Chou	0	0	0	0
Executive Vice President	Peng Meng-Wei	0	0	0	0
Vice President
Current R&D officer	Cheng Mei-Ling	0	0	0	0
Vice President	George Ku	0	0	0	0
Vice President
Concurrent Accounting Manager
Corporate Governance Officer	He Hsiu-Yuan	0	0	0	0
Vice President	Chang Yu-Ming	0	0	0	0
Vice President	Tank Chuang	0	0	0	0
Vice President	Huang Liang-Wei	0	0	0	0
Vice President	Chiang Yao-Tsung	0	0	0	0
Director	Li Wen-Yu	0	0	0	0
Director	Chen Kuo-Jung	0	0	0	0
Director	Feng Hsu-Hui	0	0	0	0
Director	Chang Chih-Hao	0	0	0	0
Director	Kuo Han-Yu	0	0	0	0
Director
Concurrent CFO	Hsu Sen-Yuan	0	0	0	0

(II). Transfer and change of equity

Unit: Share

Name	Reason of equity transfer	Trade date	Counterparty	Relationship of the counterparty with any director, supervisor, and shareholder with more than 10% ownership interest	Number of shares	Trade price
Chen Chun-Wei	Gift	2025-06-06	Yang Chiao-An	Husband and Wife	76,000	23.70

(III). Equity pledge information

Name	Reason of change to pledge	Date of change	Counterparty	Relationship of the counterparty with any director, supervisor, and shareholder with more than 10% ownership interest	Number of shares	Shareholding ratio	Pledge ratio	Amount of pledged loan (redemption)
No information fits this criteria

Two. Corporate Governance Report

VIII. Relationship information, if any one of the 10 largest shareholders is a related party, or is the spouse or a relative within the second degree of kinship with another shareholder:

Name	Shares held by the shareholder		Shares held by spouse or minor children		Total shares held in the names of others		The title or name and relationship of the 10 largest shareholders who are related parties to each other, in a spousal relationship or within the second degree of kinship referred to in SFAS No.6
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Title (name)	Relationship
Kun Forever Co., Ltd.
Responsible Persons: Wang Kuan-Chuan	26,369,472	14.53%	0	0%	0	0%	Responsible Person of Class Xi Co., Ltd, Responsible Persons: Wang Kuan-Hsiang
Responsible Person of Li-Tai Investment Co., Ltd.: Wang Kuan-Hsiang
Wang Kuan-Chuan
Wang Kuan-Hsiang	Within second degree of kinship
Within second degree of kinship
Subject person
Within second degree of kinship
Li-Tai Investment Co., Ltd. entrusted with a
steer trust account by Chen Shu-Chi	12,275,599	6.76%	0	0%	0	0%	Chen Wu-chai	Within second degree of kinship
Li-Tai Investment Co., Ltd.
Responsible Persons: Wang Kuan-Hsiang	10,490,800	5.78%	0	0%	0	0%	Responsible Person of Kun Forever Co., Ltd.: Wang Kuan-Chuan
Responsible Person of Class Xi Co., Ltd, Responsible Persons: Wang Kuan-Hsiang
Wang Kuan-Chuan
Wang Kuan-Hsiang	Within second degree of kinship
Within second degree of kinship
Subject person
Li-Tai Investment Co., Ltd. entrusted with a
steer trust account by Chen Chun-Wei	7,700,000	4.24%	0	0%	0	0%	None	None
Chen Xi Co., Ltd.
Responsible Persons: Wang Kuan-Hsiang	4,290,563	2.47%	0	0%	0	0%	Responsible Person of Kun Forever Co., Ltd: Wang Kuan-Chuan
Responsible Person of Li-Tai Investment Co., Ltd.: Wang Kuan-Hsiang
Wang Kuan-Chuan
Wang Kuan-Hsiang	Within second degree of kinship
Within second degree of kinship
Subject person
China Trust Rexon Industrial Employee Stock
Ownership Comprehensive Trust Account	2,333,222	1.29%	0	0	0	0	None	None
Wang Kuan-Chuan	2,307,550	1.27%	1,802,610	0.99%	3,109,782	1.71%	Responsible Person of Kun Forever Co., Ltd: Wang Kuan-Chuan
Responsible Person of Class Xi Co., Ltd, Responsible Persons: Wang Kuan-Hsiang
Responsible Person of Li-Tai Investment Co., Ltd.: Wang Kuan-Hsiang
Wang Kuan-Hsiang	Subject person
Within second degree of kinship
Within second degree of kinship
Within second degree of kinship
Liu Sheng-jiao	2,120,000	1.17%	0	0%	0	0%	None	None
Wang Kuan-Hsiang	1,986,178	1.09%	0	0.00%	7,600,345	4.19%	Responsible Person of Kun Forever Co., Ltd: Wang Kuan-Chuan
Responsible Person of Class Xi Co., Ltd, Responsible Persons: Wang Kuan-Hsiang
Responsible Person of Li-Tai Investment Co., Ltd.: Wang Kuan-Hsiang
Wang Kuan-Chuan	Within second degree of kinship
Subject person
Subject person
Within second degree of kinship
Chen Wu-chai	1,791,550	0.99%	0	0	0	0	Li-Tai Investment Co., Ltd. entrusted with a steer trust account by Chen Shu-Chi	Within second degree of kinship

IX. The total number of shares and total equity stake held in the same investee by the Company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the Company

Unit: Thousand shares; % March 22, 2026

Investee	Investment of the Company		Investment of directors, supervisors, managerial officers and directly or indirectly controlled business		Aggregate investment
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio
Fine Clear Co., Ltd.	1,600	16	0	0	1,600	16
Rexon Technology Corp., Ltd.	7,851	82.87	192	2.02	8,043	84.89
Power Tool Specialists Inc.	0.096	96	0.004	4	0.1	100
Gold Item Group Limited	25,000	100	0	0	25,000	100
Gold Tech Group Ltd.	0	0	10	100	10	100
Tongxiang Rexon Industrial Co., Ltd.	0	0	25,000	100	25,000	100
ALLWIN ELECTRICAL AND MECHANICAL TECH.(THAILAND) CO.,LTD.	1,018	21.76	0	0	1,018	21.76
Rexon Industrial Company LTD (Vietnam)	20,000	100	0	0	20,000	100

Three. Offering of Securities

I. Capital and share

(I). Sources of capital

Sources of capital

March 22, 2026; Unit: Share/thousand; Amount: Thousand

Month/year	Issue price	Authorized capital		Paid-in capital		Remarks
		Shares	Amount	Shares	Amount	Sources of capital	Investment by properties other than cash	Others
1996.08	10	114,600	1,146,000	95,264	952,640	Follow-on offering valued at NT$200,000 thousand
Capitalization of earnings valued at NT$53,760 thousand
Capitalization of capital reserves valued at NT$26,880 thousand	None	A
1997.08	10	150,000	1,500,000	126,696	1,266,956	Follow-on offering valued at NT$200,000 thousand
Capitalization of earnings valued at NT$9,527 thousand
Capitalization of capital reserves valued at NT$104,790 thousand	None	B
1998.08	10	208,000	2,080,000	154,569	1,545,688	Capitalization of earnings valued at NT$152,035 thousand
Capitalization of capital reserves valued at NT$126,696 thousand	None	C
1999.08	10	380,000	3,800,000	204,804	2,048,036	Capitalization of earnings valued at NT$347,779 thousand
Capitalization of capital reserves valued at NT$154,569 thousand	None	D
2000.09	10	380,000	3,800,000	238,801	2,388,010	Capitalization of earnings valued at NT$237,572 thousand
Capitalization of capital reserves valued at NT$102,402 thousand	None	E
2001.02	10	380,000	3,800,000	249,713	2,497,131	Merger-related issue of new shares valued at NT$109,121 thousand	None	F
2003.08	10	380,000	3,800,000	252,210	2,522,103	Capitalization of earnings valued at NT$24,972 thousand	None	G
2007.06	10	380,000	3,800,000	228,784	2,287,843	Cancellation of treasury shares for capital reduction valued at NT$234,260 thousand	None	H
2012.10	10	380,000	3,800,000	181,474	1,814,735	Capital reduction to cover losses valued at NT$473,108 thousand	None	I

Note 1: Approval letters for the aforementioned capital increase in respective fiscal years:

A. (1996) Tai-Tsai-Zheng (I) No. 38780 dated July 03, 1996
B. (1997) Tai-Tsai-Zheng (I) No. 49505 dated July 04, 1997
C. (1998) Tai-Tsai-Zheng (I) No. 58634 dated July 09, 1998
D. (1999) Tai-Tsai-Zheng (I) No. 64544 dated July 13, 1999
E. (2000) Tai-Tsai-Zheng (I) No. 61390 dated July 15, 2000
F. (2000) Tai-Tsai-Zheng (I) No. 99387 dated December 18, 2000
G. (2003) Tai-Tsai-Zheng (I) No. 0920134232 dated July 29, 2003
H. Jing-Shou-Shang-Zheng No. 09601138800 dated June 26, 2007
I. Jing-Shou-Shang-Zheng No. 10101211760 dated October 15, 2012

Three. Offering of Securities

Type of share

March 22, 2026 Unit: Share

Type of share	Authorized capital			Remarks
	Outstanding shares (listed companies' shares)	Unissued shares	Total
Ordinary share	181,473,500	198,526,500	380,000,000

(II). Major shareholder

Name of major shareholder	Shareholding	Shareholding ratio %
Kun Forever Co., Ltd.	26,369,472	14.53%
Li Tai Investment Co.,Ltd. entrusted with a asset trust account by Chen Shu-Chi	12,275,599	6.76%
Li Tai Investment Co.,Ltd.	10,490,800	5.78%
Li Tai Investment Co.,Ltd. entrusted with a asset trust account by Chen Jun-Wei	7,700,000	4.24%
Chen Xi Co.,Ltd.	4,490,563	2.47%
China Trust Rexon Industrial Employee Stock Ownership Comprehensive Trust Account	2,333,222	1.29%
Wang Kuan-Chuan	2,302,550	1.27%
Liu Sheng-jiao	2,120,000	1.17%
Wang Kuan-Hsiang	1,986,178	1.09%
Chen Wu-chai	1,791,550	0.99%

(III). Dividend policy and its implementation

Dividend policy stipulated in the Articles of Incorporation:

(1). Article 25: If there is a profit in a fiscal year, no less than 5% should be allocated to employee compensation and no less than 1% should be allocated to adjust the salaries or distribute compensation to grassroots employees. When the amount allocated is distributed compensation to grassroots employees, it can be included in the employee compensation allocation amount; and no more than 5% should be allocated to directors and supervisors. However, if the Company has accumulated loss, an amount used to cover the loss shall be set aside first. The employees to which remuneration is paid in shares or cash may include those of the 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

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Three. Offering of Securities

Directors shall draft an earnings distribution proposal and submit it to the shareholders’ meeting for approval.

(2). Article 25-1: The company's dividend policy is based on current and future development plans, taking into account the investment environment, capital needs, domestic and foreign competition, and taking into account factors such as shareholders' interests. Every year, it shall allocate no less than 20% of the current period's distributable earnings. Distribute dividends to shareholders. When distributing dividends to shareholders, they can be paid in the form of cash or stocks, of which cash dividends shall not be less than 20% of the total dividends.

Dividend distribution proposed at the current shareholders’ meeting: For the Company’s 2025 earnings distribution, the Board of Directors resolved on February 26, 2026 that cash dividends will be distributed to the shareholders (NT$0.6 per share).

Undistributed earnings at beginning of period	1,407,738,380
Plus: Remeasurement of defined benefit plan	25,106,007
Plus: Special reserve as reserved deduction of equity	(3,010,690)
Plus: Net profit (loss) in current year	176,307,698
Minus: Appropriation of legal reserve	(20,141,371)
Distributable earnings	1,586,000,024
Distribution:
Minus: Undistributable shareholder dividends	(108,884,100)
Undistributed earnings at end of period	1,477,115,924

Where there are any anticipated significant changes to dividend policy, details shall be provided: None.

(IV). The influence of the share dividends proposed at the current shareholders’ meeting on the operation performance and EPS of the Company

It is proposed in the current shareholders’ meeting that no share dividends will be distributed, so there is no such influence.

(V). Remuneration to employees, directors and supervisors

The percentage or scope of the remuneration to employees, directors and supervisors according to the Articles of Incorporation

(1). If there is a profit in a fiscal year, no less than 5% should be allocated to employee compensation and no less than 1% should be allocated to adjust the salaries or distribute compensation to grassroots employees. When the amount allocated is distributed compensation to grassroots employees, it can be included in the employee compensation allocation amount; and no more than 5% should be allocated to directors and supervisors. However, if the Company has accumulated loss, an amount used to cover the loss shall be set aside first. The employees to which remuneration is paid in shares or cash may include those of the affiliated companies who meet certain criteria.

The basis for the estimation of the remuneration to employees, directors and supervisors, the basis for the calculation of the number of shares for the share-based remuneration to employees, and the accounting treatment of any discrepancies between the actually distributed and estimated amounts in the current period: If there is any significant change to the distributed amount resolved by the Board of Directors before the annual consolidated financial reports are published, the original allocated expenses of the year will be adjusted to include the change. Any change to the amount after the annual consolidated financial reports are published will be

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Three. Offering of Securities

considered as the change in accounting estimate and covered in the following year.

The distribution of remuneration approved by the Board of Directors

(1). The amount of the remuneration to employees, directors and supervisors distributed in cash or shares. If there is any discrepancy from the estimated amount of the expenses recognized in the year, the discrepancy, the reason for the discrepancy, and the status of the treatment shall be disclosed: The Company's cash remuneration to employees NT$36,825,411 and remuneration to directors proposed NT$6,400,000 for 2025; there is no discrepancy from the estimated amount of remuneration to employees and directors on the book.

(2). The amount of the remuneration to employees in the form of stocks, and the share of that amount as a percentage of the sum of the net income after tax stated in the separate or individual financial reports for the current period, and total employee remuneration: N/A.

The actual distribution of the remuneration to employees, directors and supervisors in the previous year (including the number and amount of shares distributed and the stock price); if there is any difference from the recognized amount of the remuneration to employees, directors and supervisors, the difference, the reason for the difference, and the treatment shall be disclosed: No difference.

Item	Amount resolved by Board of Directors	Amount actually distributed	Distribution method
Employee remuneration	NT$45,297,153	NT$45,297,153	N/A
Director and supervisor remuneration	NT$6,400,000	NT$6,400,000	N/A

(VI). Buyback of shares by the Company:

Completed: The Company shall describe, for the most recent year and the period up to the annual report publication date, the reported purpose of share buyback, period of share buyback, buyback price range, type and number and amount of shares bought back, actual and expected buyback quantity ratio, number of shares canceled and transferred, accumulated number of the Company's shares held, and accumulated quantity of the Company's shares held to the total quantity of the issued shares in the most recent year and up to the publication date of the annual report: N/A.
In progress: The Company shall describe the purpose of share buyback, type of shares to be brought back, maximum total monetary amount of buyback, expected period and quantity of buyback, and buyback price range; the type, number and amount of shares already bought back, and the actual and expected buyback quantity ratio up to the publication date of the annual report shall also be specified: N/A.

II. Issuance of corporate bonds

(I). Information on the company's issuance of corporate bonds shall include outstanding bonds and bonds for which an issue is currently under preparation, and the related matters and effect on shareholders' equity shall be disclosed as per Article 248 of the

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Three. Offering of Securities

Company Act; any privately placed corporate bonds shall be conspicuously identified as such: None.

III. Issuance of preferred shares

(I). Information on preferred shares shall include both outstanding shares and unissued shares for which an issue is currently under preparation, and shall disclose any conditions attached to issuance, the effect on shareholders’ equity, and matters set forth in Article 157 of the Company Act; any privately placed preferred shares shall be conspicuously identified as such: None.

IV. Issuance of overseas depositary receipts

(I). Information on overseas depositary receipts shall include receipts issues that remain partially outstanding, and on unissued receipts for which an issue is currently under preparation, and shall disclose the date of issuance, total monetary amount issued, rights and obligations of the holders of the overseas depositary receipts, etc.; any privately placed overseas depositary receipts shall be conspicuously identified as such: None.

V. Employee share subscription warrants

(I). The annual report shall disclose unexpired employee subscription warrants issued by the Company in existence as of the date of publication of the annual report, and shall explain the effect of such warrants upon shareholders’ equity; any privately placed employee subscription warrants shall be conspicuously identified as such: None.

(II). The annual report shall disclose the names, acquisition and subscription of managerial officers holding employee share subscription warrants and of the ten employees holding employee subscription warrants authorizing purchase of the most shares, cumulative to the date of publication of the annual report: None.

The section on “new restricted employee shares” shall specify the following matters:

(1). For all new restricted employee shares for which the vesting conditions have not yet been met for the full number of shares, the annual report shall disclose the status up to the date of publication of the annual report and the effect on shareholders’ equity: None.

(2). The annual report shall disclose the names and acquisition status of managerial officers who have acquired new restricted employee shares and of employees who rank among the top ten in the number of new restricted employee shares acquired, cumulative to the date of publication of the annual report: None.

VI. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies

(I). If, during the most recent year up to the date of publication of the annual report, the Company has completed any issuance of new shares in connection with a merger or

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Three. Offering of Securities

acquisition or with acquisition of shares of any other company, the following matters shall be specified:

In the case of a company whose shares are listed on the TWSE (“TWSE listed company”) or listed on the TPEx in accordance with the provisions of Article 3 or Article 3-1 of the Taipei Exchange Rules Governing the Review of Securities for Trading on the TPEx (“TPEx listed company”), the annual report shall include a clear opinion prepared by the managing underwriter concerning any issuance of new shares in connection with any merger or acquisition or with any acquisition of shares of any other company within the past quarter: None.
In addition to requirements set forth in the preceding item, the annual report shall also disclose the implementation status of any of the aforementioned matters during the most recent quarter. If the progress or benefits of such implementation were not as good as expected, the annual report shall explain specifically how the situation is likely to affect shareholders’ equity, and shall put forward a plan for corrective action: None.

(II). Where the Board of Directors has, during the most recent year up to the date of publication of the annual report, adopted a resolution approving any issuance of new shares in connection with a merger or acquisition or with acquisition of shares of any other company, the annual report shall disclose the implementation status together with the basic information of the company (or companies) to be merged or acquired or whose shares are to be acquired. Where any issuance of new shares in connection with a merger or acquisition or with acquisition of shares of any other company is currently in progress, the implementation status and its effect upon shareholders’ equity shall be disclosed: None.

VII. Implementation of the Company’s capital utilization plans

(I). Description of the plans: For the period as of the quarter preceding the publication date of the annual report, with respect to each uncompleted public issue or private placement of securities, and to such issues and placements that were completed in the most recent three years but have not yet fully yielded the planned benefits, the annual report shall provide a detailed description of the plan for each such public issue and private placement. Such descriptions shall include any and all changes to the plan, the source and utilization of funds, the reason(s) for any changes to the plan, the benefits yielded by the funds before and after any change to the plan, the date on which the change to the plan was reported at a shareholders’ meeting, and the date on which such information was uploaded to the information disclosure website specified by the FSC: None.

(II). Implementation status: With respect to funds usage under the plans referred to in the preceding subparagraph, the annual report shall (for the period as of the quarter preceding the publication date of the annual report) analyze the implementation

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Three. Offering of Securities

status and compare actual benefits with expected benefits. Where implementation has failed to yield the expected progress or benefits, the annual report shall provide specific reasons for such failure, explain any effect it might have upon shareholders' equity, and outline the plan for correcting the situation. Where any of the following items apply to the funds usage plan descriptions referred to in the preceding subparagraph, the annual report shall further disclose the following information: None.

If the funds are used to merge, acquire, or purchase another company through share acquisition, to expand fixed assets, or to acquire new property, plant and equipment, the annual report shall compare and describe the property, plant and equipment, operating revenues, operating costs, and operating income: None.
If the funds are invested in another company, the annual report shall describe the condition of the invested company and explain the effect upon the Company's gain or loss from investments: None.
If the funds are used to strengthen the Company's working capital or pay off debts, the annual report shall: (1) note any increase or decrease in the Company's current assets, current liabilities, and total liabilities; (2) compare and explain the Company's interest expenses, operating revenues, and earnings per share; and (3) analyze the Company's financial structure: None.

Four. Operational Overview

I. Business contents

(I). Business scope

Main business items of the Company

(1). Manufacturing, machining, purchase and sales of all machines, hardware, tools and their parts.

(2). Manufacturing, machining, purchase and sales of all kinds of plastic, rubber, ink, synthetic resin, handicrafts, woodenware and footwear as well as the dyeing and finishing of man-made foam.

(3). Manufacturing, machining, purchase and sales of drill presses, lathes, milling and saw machines and all kinds of other power tools as well as their parts.

(4). Manufacturing, machining, purchase and sales of automated parking facilities.

(5). Manufacturing, machining, purchase and sales of all electrical home products and parts.

(6). Manufacturing, machining, purchase and sales of exercise and fitness equipment as well as its relevant parts and accessories.

Revenue percentage

Year: 2025

Product	2025	2024
Power tool	10.35%	15.59%
Fitness device	83.94%	76.21%
Others	5.71%	8.20%
Total (consolidated)	100.00%	100.00%

Current commodities (services) of the Company

The main products of the Company are the power tool (including outdoor power tools), fitness device series and E-Mobility.

New commodities (services) to be developed

With a focus on ESG sustainability development, our company has combined the core technologies in various types of motors, electronic controls, and mechanical design that have been developed over 50 years. Together with automation equipment and lean production, REXON has launched a series of the next-two-year product plans which cover auxiliary mobility tools under the trend of oil-to-electricity conversion, including sports, consumer goods, and commercial fields.

(II). Industry overview

Current Industry Status and Development

According to the IMF's January 2026 World Economic Outlook update, global GDP growth is projected at 3.3% for both 2025 and 2026, reflecting moderate resilience despite geopolitical uncertainties and inflationary pressures. Advanced economies are expected to grow approximately 1.8%, while emerging markets are projected to grow above 4%. Growth momentum is clearly concentrated in some emerging markets and countries benefiting from technology investment, exhibiting a characteristic of "stability but increasingly narrow sources of growth." Regarding inflation, the IMF forecasts that global inflation will decrease from approximately 4% in 2025 to around 3.8% in 2026, and the interest rate environment may gradually ease, but geopolitical conflicts and energy price volatility remain major risks.

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Four. Operational Overview

Taiwan's economic growth in 2026 is expected to slow moderately compared to the high base in 2025. Academia Sinica forecasts real GDP growth of approximately 3.71% in 2026, with external demand remaining a key driver. However, the institute also warns that US tariff policies and a slowing Chinese economy will drag down traditional industries and regional trade. The Trump administration, in its second term, continued tax cuts and fiscal expansion, significantly increasing tariffs on China and some trading partners. While this boosted US domestic demand and investment, it also exacerbated global supply chain restructuring and trade uncertainty.

China's economy is experiencing a moderate slowdown due to adjustments in the real estate market and weak domestic demand. Although the government is stabilizing growth through increased infrastructure investment and support for advanced manufacturing and the digital economy, overcapacity and pressure from low-priced exports are intensifying regional competition. Against this backdrop, Taiwan continues to benefit from global investment in AI and advanced manufacturing, supported by its competitive advantages in semiconductors and key components, which supports overall exports and economic growth. However, the evolution of US-China relations, escalating trade and technology controls, and China's economic slowdown have brought greater uncertainty to Taiwan's traditional industries and supply chain layout, creating an external business environment where opportunities and risks coexist.

(1). Power Tools Section

Power tools can be mainly divided into benchtop and handheld power tools, with handheld tools dominating the market. Handheld power tools are further divided into plug-in and rechargeable types. Due to rapid advancements in battery technology, rechargeable handheld power tools have become the mainstream. While benchtop power tools were initially all plug-in, rechargeable products have become increasingly common in recent years, such as rechargeable miter saws, rechargeable table saws, and electric garden tools. Currently, professionals and DIY users increasingly favor handheld rechargeable power tools, primarily due to their portability and ease of use. Rechargeable power tools have become one of the main drivers of market growth, prompting major power tool manufacturers to actively and continuously develop cordless power tool technology, making it a primary growth engine for their respective companies.

Compared to gasoline-powered tools, battery-powered and electric outdoor power equipment are booming due to their environmentally friendly characteristics and lower maintenance costs. Furthermore, robotic lawnmowers and AI-powered lawn care solutions are gaining popularity among residential users, offering greater convenience and operational efficiency. Since 2019, Rexon has been committed to sustainable operation and carbon emission reduction, making numerous preparations for production optimization and corporate improvement, such as promoting ESG projects, setting up a BLDC (Brushless DC Motor) production line, and planning product development and design that better aligns with carbon reduction goals, enabling us to fully meet customers' requirements and conditions for future products.

(2). Fitness Equipment Section

Fitness equipment is used for physical training to control weight, improve physical strength, develop muscle strength, and enhance cardiovascular function. A wide variety of fitness equipment allows users to perform aerobic or anaerobic strength training (weight training) in a smaller space. Fitness trends are shifting from "body shaping" to "data-driven holistic health integration." The global fitness industry has evolved from simply pursuing short-term body shaping goals to a holistic health

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market integrating physical and mental well-being, preventative medicine, and personalized management, reflecting consumers' emphasis on a comprehensive healthy lifestyle. Future product development will revolve around four main directions: "technology and data, aging and chronic disease management, mind-body integration, and community-based scenarios." Commercial equipment and digital services are moving from selling individual equipment to providing "integrated hardware and software solutions." The fitness market is no longer limited to traditional fitness equipment; all activities that help people achieve a healthy life can be opportunities to invest in. Rexon will closely monitor and integrate with the dynamics of the fitness market, actively developing and paying attention to the latest product developments.

In summary, Rexon will continue to work closely with its major customers to develop new products that meet market and user needs, in order to grow and maintain competitiveness, thereby increasing its market share.

Industry Supply & Demand, and Competitive Landscape

In addition to facing market competition from Taiwanese and mainland Chinese manufacturers, Rexon also faces constant challenges to its adaptability due to changing global circumstances. Because of the international political factors surrounding Trump 2.0, competitors have expanded beyond their existing factories in China, establishing plants in Southeast Asia. In response, Rexon has invested in factories in Thailand and Vietnam to create a more robust "golden triangle" production system. Furthermore, Rexon's continued focus on core competencies such as product innovation, R&D, production, marketing, and customer service allows it to flexibly respond to various international developments and formulate corresponding strategies and plans.

(1). Power Tools Industry

The main sales channels for the power tool industry include traditional hardware stores, large home improvement stores, and the emerging online shopping platforms. In North America, physical channels are concentrated in large retailers such as Home Depot, Lowe's, and Harbor Freight, actively developing their own brands and expanding market share with more innovative products and pricing strategies.

While Chinese-made power tools are competitively priced, the slightly eased US-China trade tensions have escalated again after Trump's second term as US president, leading to a reshuffling of the global supply chain and prompting companies to actively seek solutions to mitigate risks and restructure.

Regarding marketing and service, Rexon's cooperation model with retailers primarily involves: (A) understanding customer needs through market analysis and proposing products to retailers; (B) retailers specifying product items and pricing requirements, with Rexon responsible for design, R&D, and manufacturing; and (C) providing after-sales service to retailers. In addition to maintaining close partnerships with major North American retailers, Rexon is also actively developing professional and DIY markets in Europe and emerging countries worldwide, expanding its product portfolio across various regions.

In terms of research and development and innovation, Rexon invests heavily in product development and improvement, including user testing and feedback, focus group operations, site visits, and innovative concept generation, to develop products that better meet user needs. Moving towards the goal of integrated electric drive systems, Rexon is actively expanding the application of BLDC motors, broadening its product portfolio.

In production management, Rexon has implemented lean production management and intelligent material control. Since 2022, it has been reviewing its factory's carbon

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footprint and gradually reducing carbon emissions from manufacturing to comply with global trends and regulations on green design and sustainable development, a crucial factor in gaining market recognition in various countries.

Regarding manufacturing locations, Rexon has two production bases in Taiwan and Tongxiang, Zhejiang, China, allowing for flexible strategic planning to achieve optimal cost and manufacturing combinations. In response to the changing global landscape under Trump 2.0, Rexon has also strategically invested in a factory in Thailand, ensuring a competitive edge in machine tool manufacturing.

(2). Fitness Equipment Industry

The fitness machine industry's main markets are North America and Europe, while emerging markets in Asia Pacific, Latin America, the Middle East, and Africa are also experiencing rapid growth.

Commercial fitness machines are primarily distributed through fitness clubs, professional fitness equipment chain stores, and hotels. Commercial users can be further categorized into hotels, corporate offices, hospitals and medical centers, and public institutions.

Home fitness machines are distributed through large chain retail stores and membership-based chains, as well as the networked membership exercise models that have emerged in recent years.

Rexon currently focuses on OEM manufacturing, producing for well-known brands. Clients are responsible for distribution channels, brand management, and services, while Rexon provides comprehensive services from R&D and design to manufacturing. North America remains the world's largest market for fitness machines. Under Trump 2.0's trade policies, Rexon has chosen to invest in and establish a factory in Vietnam to diversify its fitness machine production locations and minimize the impact of geopolitics.

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(III). Overview of technology and R&D:

R&D expenses invested in the most recent year and up to the publication date of the annual report

Unit: NTD thousand

Year	R&D expenses	Percentage in the revenue of the current year
2024	179,471	3%
2025	186,439	3%
As of February 2026	25,675	4%

Technology or product developed successfully

Product	2025	As of January 2026
Power tool	10	0
Fitness device	7	3
New Business	3	0
Subtotal	20	3

(IV). Business Development Plan

Power Tool Product:

Rexon's business development plan focuses on large retail stores as its primary customer base while actively engaging with globally renowned brands for ODM product development and brand licensing planning and design. Through strategic partnerships with large retailers, Rexon leverages business operations to gain insights into end-users and market demand at both individual and macro levels. Through collaborations with well-known brands, Rexon strengthens its OEM/ODM model by utilizing its expertise in research, development, and manufacturing. These partnerships allow for mutual learning in design, production, and marketing, continuously enhancing Rexon's overall corporate capabilities.

With corporate profitability as the key driver, the future development strategy is outlined as follows:

(1). Expanding market share in North America with innovative products while actively promoting these products in Europe and developing emerging market customers for maximum efficiency.

(2). Developing products based on user needs, gaining an in-depth understanding of customer expectations, purchasing motivations, and behaviors to provide products that meet their demands.

(3). Incorporating green design principles into factory production and product manufacturing to align with sustainability goals and carbon reduction trends. Rexon is committed to reducing the environmental impact of its production processes while actively developing green products based on its core technologies.

(4). Collaborating with well-known OEM brand clients, combining Rexon's

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manufacturing and quality strengths with the brand influence of its partners to capture market share in high-value professional products.

(5). Actively supporting customers in e-commerce platform sales, assisting them in securing leading global e-commerce advantages, and driving new growth for Rexon future business expansion.

Fitness Equipment Section:

Rexon primarily operates as an OEM manufacturer in the fitness equipment industry, serving major fitness equipment brands. In recent years, the company has been actively seeking new customer partnerships, continuously expanding its co-developed product portfolio. By forming an industry alliance with Johnson Health Tech, Rexon has not only strengthened its expertise in aerobic equipment manufacturing but also significantly broadened its future commercial strength training equipment product range.

In addition to growth in the home fitness brand sector, Rexon maintains close interactions with clients in the commercial fitness market to ensure comprehensive market coverage. Regardless of market fluctuations, Rexon builds on its strong OEM foundation in the commercial fitness equipment sector, utilizing its expertise in R&D and manufacturing to collaborate with partners in design, production, and marketing. This continuous learning process strengthens the company's capabilities and resilience.

Expansion of Product Categories: Rexon currently specializes in manufacturing spin bikes, treadmills, elliptical trainers, stair climbers, indoor cycling bikes, rowing machines, smart strength training machines, weight training equipment, and bike trainers. With years of accumulated expertise and experience, the company has built a strong reputation in the industry, earning the trust of existing clients while attracting new customers eager to explore potential collaborations.

Continuous Customer Acquisition: As an OEM manufacturer in the fitness equipment industry, Rexon serves major fitness brands. In recent years, it has actively sought new customer partnerships, continuously expanding its co-developed product portfolio. The company is leveraging its R&D and production capabilities to enhance technological standards and expand production capacity, meeting the demands of both existing and potential clients. Rexon anticipates significant growth in fitness equipment sales this year, driving substantial business expansion

Smart Mobility (E-Mobility):

Amid global ESG trends, reducing and ultimately eliminating carbon emissions is a shared objective. With 50 years of experience in electromechanical integration and expertise in motors, electrical components, and mechanical structures, Rexon is committed to developing electric-powered solutions as alternatives to fuel-powered systems.

The company has developed a range of E-Mobility products, including electric-assisted bicycles, smart lawn-mowing robots, and drones. Additionally, Rexon is proactively expanding into other high-growth electric vehicle applications, such as golf carts, beach buggies, and electric transport vehicles.

As environmental consciousness continues to rise worldwide, the applications derived from electric motor-driven technologies will remain a key focus for Rexon. This sector represents the company's strategic investment in building a robust and sustainable industry for the next 50 years.

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II. Overview of market and production/sales

(I). Market analysis

Regions of distribution (provision) for the Company’s major products (services) analysis: The major products of the consolidated company are power tools and fitness equipment, which are mainly for international sales and sold in North America (the U.S.) in terms of region.

Region	2025		2024
	Sales amount	Percentage in net sales %	Sales amount	Percentage in net sales %
America	4,786,220	88%	5,601,756	92%
Europe	414,183	8%	258,202	4%
Asia	212,761	4%	241,537	4%
Others	6,127	0%	-2,209	-0%
Total	5,419,291	100.00%	6,099,286	100.00%

Market share:

(1). Power Tools:

Rexon’s sales are primarily concentrated in North America, with Europe and other regions as secondary markets. In the U.S. and Europe, benchtop power tools, such as miter saws and table saws, dominate the market. Rexon's main export products include miter saws, tile cutters, table saws, and drill presses. Additionally, the company has expanded its product portfolio to include a new outdoor battery-powered equipment series, featuring electric lawnmowers, hedge trimmers, and leaf blowers. These products were first introduced in the Taiwan market and are now being aggressively promoted through professional channels, retail stores, and social media.

(2). Fitness Equipment:

Rexon's fitness equipment market is also primarily based in North America, with Europe and other regions as secondary markets. In the fitness equipment industry, the company mainly focuses on OEM manufacturing, while actively strengthening ODM innovation and R&D. It continuously seeks new cooperation opportunities and alliances with industry peers, not only enhancing its existing manufacturing depth in aerobic fitness equipment but also expanding its product range in commercial weight training equipment. The company continues to cultivate its expertise in both home and commercial fitness equipment.

Market Outlook and Growth Potential

(1). Power Tools Section

The global power tool market size in 2025 is estimated at approximately USD 30 - 37 billion, with a projected compound annual growth rate (CAGR) of 4% - 7% over the next decade. The market is in a steady growth phase, with growth

Four. Operational Overview

momentum primarily driven by investment in construction and infrastructure, manufacturing automation, and the increasing penetration rate of wireless and smart power tools. In terms of product structure, the power tool market continues to shift from wired to wireless, with advancements in battery and motor technology driving professional and DIY users to adopt efficient, lightweight, and low-maintenance brushless power tools. At the same time, smart tools that combine sensing and networking capabilities are rapidly growing in construction site management and safety applications.

In North America, the power tool market is highly concentrated within the home improvement retail sector. Home Depot and Lowe’s collectively account for over 70% of market share, serving as the primary distribution channels for major brands. In Q3 2025, Home Depot represented approximately 49% of retail sales in the power tool category, while Lowe’s accounted for approximately 27%. Amazon and Walmart contributed approximately 16% and 8%, respectively. This concentrated retail structure continues to shape competitive positioning and long-term demand dynamics within the region.

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(Brushless DC Motor) production line, and planning and designing products that better align with carbon reduction goals. This allows us to fully meet our customers' requirements and conditions for future products.

(2). Fitness Equipment Section

The global fitness equipment market reached approximately USD 17.9 billion in 2024, growing to USD 18.9 billion in 2025, and projected to reach USD 30.6 billion by 2034 (CAGR ~5.5%).

Commercial equipment market size in 2025 is estimated at USD 8.9–9.2 billion, growing to USD 13.1 billion by 2030 (CAGR ~8%). The growth momentum mainly comes from continued investment in fitness facilities by institutions such as fitness clubs, hotels, businesses, and schools. Although the home fitness equipment market has returned to normal after the pandemic, it continues to grow, with a market size of approximately US$11.8–12 billion in 2025, and is projected to reach over US$17 billion between 2031 to 2034, with a compound annual growth rate of approximately 2%-7%, although different studies have slightly different views on the growth rate.

According to ACSM’s “Top Fitness Trends for 2026,” the leading global trends include: Wearable Technology, Fitness Programs for Older Adults, Exercise for Weight Management, Mobile Exercise Apps, Balance, Flow, and Core Strength, Exercise for Mental Health, Traditional Strength Training, Data-Driven Technology, Adult Recreation and Sport Clubs, Functional Fitness Training.

This ranking reveals more than just the popularity of a single product or course; it reflects the macro-structure shaped by demographic changes, increased technology penetration, and rising mental health needs. With the global population aging rapidly, the baby boomer generation will fully enter the 65+ age group around 2030, making senior adults one of the most stable customer groups for gyms and fitness studios. Surveys show that courses focusing on "active aging, functional maintenance, and fall prevention" are more attractive to older adults than those simply marketed as "for the elderly." Course design needs to emphasize resistance training, balance and mobility, and low-impact cardiopulmonary exercises to help seniors maintain their independent living abilities. In addition to enhancing the performance of its existing products, Rexon is actively aligning with global fitness trends, focusing its research and development on fitness for mature adults and weight

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training.

The fitness trend is shifting from "physical appearance" to "data-driven holistic health integration." The global fitness industry has evolved from simply pursuing short-term physical goals to a comprehensive health market integrating physical and mental well-being, preventive medicine, and personalized management, reflecting consumers' emphasis on a holistic healthy lifestyle. Future product development will revolve around four main directions: "technology and data, seniority and chronic disease management, mind-body integration, and community-based scenarios." Commercial equipment and digital services are moving from selling individual equipment to providing "integrated hardware and software solutions." The fitness market is no longer limited to traditional fitness equipment; all activities that help people achieve a healthy life can be opportunities for investment. Rexon will closely monitor and integrate with the dynamics of the fitness market, actively developing and paying attention to the latest product developments.

(3). New Business Ventures

The Company is expanding into the UAV motor market based on its core BLDC technologies, in alignment with national industrial policies and growing global demand for high-performance propulsion systems. To address varying requirements in power, size, and durability, the Company is strengthening key manufacturing capabilities and optimizing product configurations across multiple power ranges to enhance efficiency and quality consistency.

Building on more than five decades of electromechanical integration expertise, the Company is also extending its E-Mobility portfolio beyond UAV applications to include electric mobility solutions such as golf carts, all-terrain vehicles (ATVs), and electric transport vehicles. This expansion supports the global transition toward electrification and sustainable mobility.

With increasing global emphasis on environmental protection and carbon reduction, electric drive has gradually become a crucial direction for industrial development, replacing traditional fuel-powered systems. Leveraging its 50 years of experience in electromechanical integration and its core competencies in motors, generators, and mechanisms, Rexon has developed E-Mobility applications in the field of electric drive replacing fuel-powered systems, including drones. These drones align with future urban development and smart city policies. Furthermore, Rexon is actively expanding into other potential

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application areas, such as golf carts, ATVs, and electric transport vehicles—high-growth electric vehicle products. Responding to the growing environmental awareness in the market, Rexon will continue to explore and cultivate applications derived from electric motor drives, closely monitoring industry changes as a potential investment target for the next 50 years of robust growth.

(4). Competitive Advantages

Rexon is a leading domestic manufacturer in the power tool and fitness equipment industries. The Company's core competencies include motor applications, electronic control systems, and mechanical design. It continues to strengthen its intellectual property portfolio and implemented a patent management system in 2019 to enhance the strategic value of its patents. The Company has adopted digital management systems, including CPC (Collaborative Product Commerce) and ERP platforms, to facilitate cross-site product development and operational coordination between its Taiwan and China facilities.

In line with Industry 4.0 initiatives, Rexon has introduced intelligent logistics systems, digital signage, automated warehousing solutions, and advanced production automation to improve efficiency and operational visibility. Rexon LAB operates in accordance with international testing standards to support product validation and quality assurance.

With respect to ESG governance, the Company has completed annual carbon inventories and sustainability reports for consecutive years. Ongoing initiatives include sustainable material selection, packaging optimization, electrification of transportation equipment, installation of solar power systems, and supplier carbon management programs.

The establishment of new manufacturing facilities in Thailand and Vietnam further enhances production flexibility and mitigates potential tariff-related risks.

Business Outlook: Opportunities & Challenges

(1). Advantageous factors

A. Rexon's high-quality products have been recognized and praised by major retailers and OEM manufacturers. Since partnering with global retail chain stores in 1998, Rexon has continuously gained experience and expanded its customer base in the retail sector.

In the field of power tools, Rexon has been actively expanding its existing business and adding renowned retail chain clients year after year, ensuring

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continuous growth in its overall production and sales network. In the fitness equipment sector, Rexon has established business relationships with well-known brands and has been steadily expanding its operations while continuously accumulating research and production expertise. Moreover, we actively engage with the consumer market to understand user needs, proposing innovative structural designs to our clients to enhance product uniqueness and differentiation.

B. Leveraging its four key advantages—quality, cost efficiency, delivery, and service - Rexon has maintained stable partnerships with renowned power tool brands, fitness equipment brands, and automotive parts brands. The company is also actively expanding its customer base and product portfolio, increasing new business opportunities to achieve greater revenue growth.

C. While actively pursuing shareholder interests, Rexon invests in development and reconfigures factory facilities to enhance production capacity and efficiency. Rexon is committed to creating a friendly work environment by adding an employee gym, on-site rest areas, and redesigning the employee garden. Additionally, the company promotes green energy policies by electrifying transportation equipment and installing solar panels, contributing to a more sustainable planet.

(2). Adverse Factors

A. The demand for home fitness equipment has slowed, while the demand for commercial fitness machines has increased. In response, Rexon has restructured its market strategy to balance the distribution of machines across different usage sectors. Additionally, U.S. tariffs and inflation issues have significantly impacted various industries. To mitigate these challenges, Rexon will leverage its advantages of diversified manufacturing locations strategy, to minimize the impact while also creating new business opportunities.

B. The ongoing Russia-Ukraine war continues to disrupt global raw material supply stability and cause exchange rate fluctuations, posing challenges for the entire manufacturing industry. While such external factors are beyond control, we minimize their impact through risk management. Specifically, to address exchange rate fluctuations, we have established communication channels with banking experts and utilize forward exchange rate operations to hedge against foreign exchange risks.

C. Regarding raw material supply, we apply lean manufacturing principles and implement supplier quality guidance to prevent defects that may lead to returns, minimizing wasted labor and costs. Additionally, we reduce material waste by leveraging a systematic procurement and supplier network, enabling proactive order planning and precise control over raw material readiness. Countermeasures:

a. Committed to sustainable operations, we strive to maximize overall benefits for all corporate stakeholders.

b. Leveraging our leading electromechanical technology, we provide high-quality products and services to our brand customers.

c. Upholding a continuous improvement mindset, we achieve excellence in lean manufacturing and management.

d. Continuously expand the strategy of diversifying production locations to create more business opportunities.

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(II). Key purpose and manufacturing process of major products

Key purpose

Major product	Key purpose
Power tool	Functions such as cutting, planing, drilling, sawing, grinding and grooving for the materials, e.g. woods, metal, plastics, tiles and acrylic.
Fitness device	Body health improvement, medical treatment, body rehabilitation, weight loss, muscle-building and cardiopulmonary training as well as the enhancement of physical fitness.
E-Mobility	Auxiliary mobility tools under the trend of oil-to-electricity conversion, includes the products of sports, consumer goods, and commercial fields.

Production processes

(1). Power tool(including outdoor power tools) related products production flowchart

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(2). Fitness device and E-Mobility related products production flowchart

(III). Supply status of major raw materials

Major raw material	Major supplier	Supply status
Aluminum ingot	A01, A02	Good
Ball bearing	B01, B02, B03, B04, B05, B06, B07	Good
Motor	C01, C02, C03, C04, C05	Good
Saw blade	D01, D02	Good
Magnesium alloy	E01	Good
Plastic	F01, F02, F03, F04, F05, F06, F07	Good
Steel plate	G01, G02, G03	Good
Steel pipe	H01, H02, H03, H04	Good
Control panel	I01, I02, I03, I04, I05, I06, I07	Good

Four. Operational Overview

(IV). The name of the customer that accounted for more than 10% of the total purchase (sales) amount years, the proportion of the purchase (sales) amount, and the reason for the changes.

Information on major suppliers for the most recent two years:

Item	2024				2023
	Name	Amount	Percentage in annual net purchase (%)	Relationship with the issuer	Name	Amount
Major suppliers that accounted for more than 10% of the total purchase: None
	Net purchase	4,340,189	100		Net purchase	4,090,731

Note 1: The name of the major supplier that accounted for more than 10% of the total purchase in the most recent two years, the amount and proportion of the customer cannot be disclosed due to a contractual agreement or the counterparty is an non-related individual, the name may be sub-10.
Note 2: Where the Company has stocks listed on the Taiwan Stock Exchange or the Taipei Exchange and there is financial information audited, company may not be the prior to the publication date of this annual report, the information must also be disclosed.
2. Information on major customers for the most recent two years

Item	2024
	Name	Amount	Percentage in annual net sales (%)	Relationship with the issuer	Name	Amount
1	D	3,598,165	59	None	D	3,617,300
2	B	540,425	9	None	B	251,000
3	A	479,549	8	None	A	469,000
	Others	1,481,147	24		Others	1,081,000
	Net sales (consolidated)	6,099,286	100		Net sales (consolidated)	5,419,000

Note 1: The name of the major customer that accounted for more than 10% of the total sales in the most recent two years, the amount and proportion of the customer cannot be disclosed due to a contractual agreement or the counterparty is an non-related individual, the name may be sub-10.
Note 2: Where the Company has stocks listed on the Taiwan Stock Exchange or the Taipei Exchange and there is financial information audited, company may not be the prior to the publication date of this annual report, the information must also be disclosed.

Four. Operational Overview

III. Employees

(I). Number of employees, average years of service, average age, and education degree distribution ratio in the most recent two years and up to the publication of this annual report

January 31, 2026

Year		2024	2025	As of January 31, 2026 for the current year
Number of employees	Technical personnel	154	157	150
	Management and administrative personnel	318	314	328
	On-site personnel	539	474	456
	Total	1,011	945	934
Average age		41.1	42.4	42.7
Average years of service		8.8	10.0	10.0
Education degree distribution ratio	PhD	0%	0%	0%
	Master	5%	6%	6%
	Bachelor	39%	40%	41%
	Senior high school	26%	27%	27%
	Below senior high school	30%	27%	26%

Note: The information of the year and up to the publication date of the annual report shall be provided.

IV. Information on environmental protection expenses

(I). Losses arising as a result of environmental pollution incidents in the most recent year and up to the publication date of the annual report (including any compensation paid and any violations of environmental protection laws or regulations identified in environmental inspection; the disciplinary date, number of the disciplinary letter, provisions violated, requirements of the provisions violated, and specific punishment shall be specified), the estimated amount of the losses that may incur currently or in the future and the responsive actions taken, and the reasons in case the losses cannot be reasonably estimated: None.

The Company adopts the production method of the central satellite system for our power tool and fitness device manufacturing business. The central plant is responsible for development, design, assembly and marketing while 80% of the parts and accessories are provided by the third party. Hence, the central plant has not polluted the external environment during the manufacturing process, much less damage the ecological environment. The Company did not suffer losses related to environmental pollution in the most recent two years as a result. Currently, we continue the implementation of the following schemes:
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(1). Promoting the prohibitions of toxic substances as well as the recovery/reuse rate for raw materials and implementing the goal of green production in compliance with the EU’s environmental policies and the launch of WEEE and RoHS.

(2). Monitoring the surrounding noise to meet the factory noise control standards.

(3). Operating the local exhaust ventilation equipment to protect air quality and prevent pollution.

(4). Conducting environment protection related inspections and handling such as drinking water testing, operation environment inspections, waste removal and handling, domestic sewage tank maintenance, surrounding noise testing and waste oil removal and handling.

Management goals for environmental protection:

Rexon has established explicit goals for environmental protection and energy saving. We manage and regulate every use of energy resources as well as pollution emission through the environmental management system. Furthermore, continuous improvements are made in the hope of achieving eco-friendly goals including low pollution, low energy consumption and easy recovery during the processes of product development, production, use and scrapping. Roughly speaking, we have set up several important management goals for the long-term environmental protection.

(1). Goals for power saving and carbon reduction

Climate change is a global environmental issue, making mitigation of the greenhouse effect a shared responsibility for all countries. Rexon aims to improve energy efficiency, reduce energy consumption and emissions, mitigate environmental impact, lower operating costs, and enhance corporate resilience and competitiveness, thereby meeting the low-carbon supply chain requirements of customers and international markets. This includes establishing an energy management system to regularly review electricity and fuel consumption data; promoting energy-saving projects (such as equipment improvements, lighting replacements, and production line optimization); setting annual carbon reduction and energy-saving targets; and tracking the effectiveness of improvements.

This study analyzes greenhouse gas inventory results, proposes reduction strategies, and outlines the gradual introduction of renewable energy and high-efficiency equipment, including the construction of solar power systems. We started applying for installation in 2019 and have officially generated electricity since July 2019. The total annual generating capacity of continuously

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constructed solar green power is 1,882,132 kW.

(2). Goals for waste reduction

Rexon's waste management focuses on practical implementation, embodying the continuous improvement spirit emphasized in ISO 14001 through source reduction, proper sorting, transparent collection, and resource reuse. Moving forward, the company will continue to increase recycling rates and optimize waste management efficiency, steadily progressing towards the goals of low-waste, circular, and sustainable manufacturing.

(3). Goals for water saving

Under global environmental change, water resources are getting scarce day by day, which is another material environmental impact that humans will face in addition to energy saving and carbon reduction issues. We have improved the manufacturing process and hardly generated process wastewater in order to protect water resources and operate the corporation sustainably. In terms of the water used by the employees for domestic demands, we strive to disseminate the concept and measures of water saving to the employees and reduce domestic wastewater in an active manner.

V. Labor-management relationship

(I). A specification of the Company’s employee welfare measures, continuing education, training, retirement systems and implementation status thereof, as well as labor-management agreements and employee rights protection measures.

Employee benefit measures

(1). Two-day weekend.
(2). Direct employee retention bonuses.
(3). Quality gyms for employees, table tennis rooms, breastfeeding rooms, “happy organic farms” for employees, classrooms for woodworking and free parking lots.
(4). Spacious and clean restaurants with the provision of free lunch and dinner for the employees.
(5). The Employee Welfare Committee and industrial unions.
(6). Labor and health insurance and a 6% pension contribution.
(7). Menstrual and paid pregnancy checkup leaves.
(8). A seven-day paternity leave.
(9). Annual, regular and free health checkups for the care of employee health.
(10). Dedicated industrial nurses and doctors stationed at the factories monthly for service.
(11). Regular conduction of Employee and Family Activity Days (e.g. large barbeque activities, mountain climbing, fishing and singing karaoke).
(12). Gift vouchers for Labor Day, Moon Festival and birthday as well as year-end dinner party and lot drawing.

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(13). Subsidies for marriage, funeral, festivities and childbirth, emergency aid and allowances for clubs (e.g. yoga, badminton, mountain climbing, softball, craft and singing clubs).

(14). Travel subsidies for the employees and their families and employee gathering subsidies.

(15). Multiple contracted stores for employees to enjoy discounts.

(16). Cooperative contracted child care centers.

Employees' training and continuing education:

(1). The Company's employees should participate in the pre-service training courses for new employees and the in-service vocational training after they registered for the duties. In addition, an annual training plan was established and then conducted according to the annual training requirement survey. Performance evaluations have been implemented based on the training results to enhance employee competency and improve the operational performance and competitiveness of the Company.

(2). To be in line with the log-term development of the Company and boost the quality of employees, we have arranged general training and professional courses as well as inviting the employees to hold internal sharing and courses on professional techniques. The Company has allowed every employee to fulfil his or her maximum potential by talent cultivation and training.

A. General training: Fire safety training and educational training on labor safety.

B. Professional training: Sending the employees to training institutions to participate in courses (according to the profession of each department) and training with respect to the knowledge needed for work, such as audit, accounting, management of managerial officers, professional technique, market promotion and business training.

(3). The Company has set up the "Implementation of Educational Training Guidelines" for the employees to follow.

(4). 12,894 of the Company's employees actually participated in the training in 2025, including internal, self-funded and all free training courses held by the competent authority, accounting firms and the industry. In 2025, the actual training expense of the Company was NT$4,231 thousand.

The code of employee conduct and ethics:

(1). For the code of employee conduct and ethics, the Company has established many relevant regulations and guidelines as the criteria that the employees should follow for their behaviors. The main contents are:

A. Agreements related to ethical standards, recusal due to conflict of interest, profiteering prevention, prohibition of wrongdoings, banquet specifications, recusal from reception, other agreements and non-disclosure agreements subject to the Company, non-disclosure with respect to Intellectual property and non-compete restrictions as well as personnel management shall be observed.

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Four. Operational Overview

B. Disciplinary measures.
C. Specifications on the duties of each unit and the functions of the organization.
D. Establishment of employee performance management plans along with the management procedure of performance evaluation and development. This is for effectively achieving the Company’s operational goals as well as making the employees pursue the achievement and development regarding their positions through performance management at present and in the future.

(2). The Company evaluates the employees according to regulations such as the duties of each unit and personnel management guidelines, employee reward and disciplinary policy, and performance management and evaluation regulations. The employees have been informed to comply with all reward and disciplinary regulations, and rewards and punishments shall be given in accordance with the aforementioned regulations.

Retirement system and its implementation status

(1). We make monthly contributions to the pension and remit it to the labor pension reserve funds account opened by the Labor Pension Fund Supervisory Committee in line with the Labor Standards Act. The “Labor Pension Act” has also been enforced since July 1, 2005.

A. The “Labor Pension Act” is applicable to all employees that took office on July 1, 2005.
B. Those who took office before July 1, 2005 may choose the pension regulations specified in the “Labor Pension Act” or the “Labor Standards Act.”

(2). Where any of the following occurs, an employee may voluntarily apply for retirement:

A. Where the employee has continuously worked for the Company for more than fifteen years and has reached the age of fifty-five years old.
B. Where the employee has continuously worked for the Company for more than twenty-five years.
C. Where the employee has continuously worked for the Company for more than ten years and has reached the age of sixty years old.

(3). Standards for pension provision

A. For the employees to whom the “Labor Standards Act” is applicable:

a. We make monthly contributions to the pension and remit it to the labor pension reserve funds account at the Bank of Taiwan in line with the Labor Standards Act.
b. Two bases are given for each full year of service rendered. However, for the rest of the years over fifteen years, one base is given for each full year of service rendered. The total number of bases shall be no more than forty-five. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months. The pension is calculated according to the bases given for the years of service rendered as well as the average wage six months before the employee’s retirement.

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Four. Operational Overview

B. For the employees to whom the Labor Pension Act is applicable, the Company shall contribute 6% of the employee’s monthly wage to the personal labor pension account at the Bureau of Labor Insurance.

C. The Company appropriate 15% of the total monthly wage of an employee as the pension and remit the amount to the labor pension reserve funds account at the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. As of December 31, 2025, the balance of the labor pension reserve funds account at the Bank of Taiwan was NT$277,168 thousand, and the value of defined benefit obligation was NT$1,485 thousand.

D. In 2025, the pension expenses of the Company under the specific pension allocation guidelines was NT$22,474 thousand. These had been contributed to the Bureau of Labor Insurance.

Remuneration policy

(1). Employee remuneration: According to Article 25 of the Articles of Incorporation: If there is a profit in a fiscal year, the US less than 5% should be allocated to employee compensation, and no less than 1% should be allocated to adjust salaries or distribute compensation to frontline employees. When the allocated amount is used as compensation for frontline employees, it can be included in the employee compensation allocation amount; 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 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.

(2). The year-end and relevant bonuses shall be distributed based on the Company’s operational performance and personal performance.

Senior managers’ remuneration and ESG-related performance incentives

(1). Purpose: With increasing focus on environmental, social, and governance (ESG) issues by companies, linking senior managers’ remuneration to ESG performance has become a global trend. This approach aims to explore effective ways to link senior managers’ compensation with ESG performance to foster the sustainable development of enterprises.

(2). Objectives

A. Establish a mechanism to link senior executives’ compensation with ESG performance.

B. Improve the environmental, social and governance performance of the company.

C. Increase the long-term value of the business and shareholder returns.

(3). Evaluation methods

A. Performance evaluation: Setting short-term and mid- to long-term ESG goals.

B. Remuneration Linking

a. Adjust senior managers’ remuneration based on the results of ESG

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Four. Operational Overview

performance evaluations.

b. Establish an incentive mechanism to encourage senior managers to achieve ESG targets.

(4). Bonus Payment Standards

Indicator items		weight (%)	Description	annual achievement rate (%)	Proportion in annual performance bonus (%)
generally	KPI indicators	100%	Includes the ratio of the current year's pre-tax profit to the budget target, and the growth rate compared to the previous year.	XX
Additional bonus indicators	ESG indicators	+5% to +10%	Includes non-financial and external financial performance indicators, such as corporate governance implementation effectiveness and carbon reduction results for the year.	XX

Material Internal Information Handling Procedure:

(1). The Company established the Material Internal Information Handling Procedure for the employees, managerial officers, directors and supervisors to follow.

Material Internal Information Handling Procedure Established by the Board of Directors and published on December 31, 2009

Chapter I General Provisions

I. Purpose of establishment

This Procedure is specifically established to set up a good mechanism for the handling and disclosure of the Company's material internal information, avoid inappropriate information leakage and ensure the consistency and accuracy of the external information released by the Company. The employees are subject to this Procedure.

II. Implementation in line with laws and regulations and this Procedure

The Company shall handle and disclose the material internal information in accordance with relevant laws, the regulations of the Taiwan Stock Exchange Corporation and this Procedure.

III. Scope of application

This Procedure is applicable to all directors, supervisors, managerial officers and employees of the Company.

The Company shall ensure that any other person who acquires knowledge of the Company's material internal information due to identity, occupation or controlling interest complies with the regulations related to this Procedure. (part of the contents are omitted owing to space limitations)

Chapter II Procedure for the Non-Disclosure of Material Internal Information

VI. Firewall operations for non-disclosure - personnel

The directors, supervisors, managerial officers and employees of the Company shall fulfill the duty of care and the fiduciary duty of a good administrator as well as acting in good faith in the conduct of business operations. Further, the non-disclosure agreements shall be signed.

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Four. Operational Overview

No director, supervisor, managerial officer or employee with the knowledge of material internal information of the Company shall disclose the known information to others. …………(part of the contents are omitted owing to space limitations)

Chapter III Procedure for the Disclosure of Material Internal Information

X. Principles of material internal information disclosure

The Company shall comply with the following principles when making external disclosures of material internal information: the information disclosed shall be accurate, complete and timely; there shall be a well-founded basis for the disclosure of information; and the information shall be disclosed fairly. …………(part of the contents are omitted owing to space limitations)

Chapter IV Handling of Abnormal Events

XIV. Reporting of abnormal events

Where the directors, supervisors, managerial officers or employees of the Company are aware of any disclosure of material internal information, they shall report to the dedicated unit and the internal audit department as soon as possible.

The dedicated unit shall draw up countermeasures after receiving an aforementioned report. It may invite members from the internal audit and other departments for discussion and keep a record of the handling results for future reference when necessary. The internal audit unit shall also perform audits as their duties may require. …………(part of the contents are omitted owing to space limitations)

Chapter V Internal Control and Educational Dissemination

Chapter VI Additional Rules

XVIII. Implementation and amendment

This Procedure shall take effect after having been submitted to and approved at the Board of Directors. Subsequent amendments thereto shall be effected in the same manner.

Work environment and employee’s personal safety protection measures:

(1). The Company established the Industrial Safety and Health Work Rules to regulate matters related to safety management and for the employees to follow.

(2). The Company has appointed qualified first-aid personnel and prepared sufficient first-aid kits in accordance with the “occupational safety and health” relevant laws and regulations.

(3). The Company has set up an emergency response team to organize and define procedures, e.g. Emergency Response Procedure and Industrial Safety and Health Work Rules to respond to emergencies and accidents, including power failure, water outage, fires, floods, typhoons, earthquakes, personnel injuries (that may cause temporary or permanent disability), food poisoning, statutory communicable diseases (SARS) and water pollution. The Procedure and the Rules are applicable to any emergency that may result in environmental pollution as well as causing the personnel to lose their lives and properties.

(4). Educational training: Educational training on safety and health

A. Implemented for new personnel. In 2025, a total of 464 people participated in the training.

B. For those who shift their jobs.

C. Educational training on safety and health for new managerial officers.

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Four. Operational Overview

(5). Equipment safety:
A. Inspections on each part of a forklift shall be implemented annually on a regular basis. Braking, directional, stowage and oil-pressure devices as well as clutches, roofs and masts shall also be inspected for abnormalities every month.
B. The machines and protection devices shall be inspected for their normality before work. Where they make unusual sounds or if other abnormalities are identified during their operation, they must be shut down and inspected as soon as possible. Compliance with this matter along with the focus on it are especially required for high-speed and high-pressure machines.
C. Where the sound made by machines and equipment in the workplace exceeds the standard decibel level, measures such as engineering improvement and machine repair shall be taken to reduce or isolate noises. Soundproofing protection devices (e.g. earplugs and earmuffs) may be worn to prevent hearing damage.
D. A special health checkup was implemented for special operators in 2025.

(6). Environmental safety:
A. Sorting and rectifying the places of operations on a daily basis.
B. Inspecting domestic drinking water and the water dispensers periodically.
C. Inspecting noises, dust and illuminance periodically.
D. The 5S movement for all factories were conducted in 2025.

(7). Medical treatment and health care:
A. Implementing annual health checkups for employees and special health checkups for special operators.
B. Hiring nurses and doctors to be stationed at the factories and provide consulting services. In 2025, doctors were stationed at the factories for a total of 12 times.
C. Breastfeeding rooms have been set up in accordance with the Act of Gender Equality in Employment.

(8). Fire safety: A completed fire protection system has been set up in accordance with the Fire Services Act and the established Fire Protection Plan while the educational training on reporting, fire extinguishment and refuge is conducted. In 2025, we conducted four kinds of training twice.

For other important agreements, the Company implements regular labor-management meetings in line with the implementation of the labor-management meeting regulations specified in Article 83 of the Labor Standards Act. Thus, the both parties are able to voice their opinions and achieve adequate communication and coordination.

(II). A specification of losses arising as a result of labor-management disputes in the most recent year and up to the publication date of the annual report (including any violations of the Labor Standard Act identified in labor inspection; the disciplinary date, number of the disciplinary letter, provisions violated, requirements of the provisions violated, and specific punishment shall be specified), the estimated amount of the losses that may incur currently or in the future and the responsive actions taken, and the reasons in case the losses cannot be reasonably estimated.

A specification of losses arising as a result of labor-management disputes in the
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Four. Operational Overview

most recent year and up to the publication date of the annual report: None.

The estimated amount of the losses that may incur currently or in the future and the responsive actions taken: The Company has reached a consensus between labor and management. With a harmonious labor-management relation, we have not suffered any losses due to labor-management disputes. The possibility of suffering any losses due to these disputes in the future is expected to be extremely low.

VI. Cyber security management

(I). Descriptions of the cyber security risk management structure, cyber security policies, specific management plans and resources invested in cyber security management.

Information security risk management structure: The Company has enhanced the information safety management to ensure the confidentiality, completeness and availability of the information assets. The goal is to provide an information environment for the continuous operation of the Company's business. The Company has not established a cross-department Information Security Committee. As a result, the officer of the General Administration Division (which is superior to the Information Management Department) is currently responsible for this matter.
Cyber security policy

(1). The Information Management Department under the General Administration Division is currently responsible for organizing all matters related to information security management.

(2). Establishing a list of information assets and personal data for regular inventory; Conducting risk management with risk assessment on information security and personal data as well as implementing all control measures.

(3). Holding irregular educational training and dissemination on information security and personal data protection; The new personnel shall sign a non-disclosure agreement for cyber security.

(4). The employees of the Company shall comply with the Company's security specifications on information or confidentiality.

(5). The suppliers and outsourced companies of Rexon shall comply with the Company's information security specifications and agreements.

(6). Proper backups and redundancy are set up for important information systems or equipment.

(7). The installation of antivirus software in all personal computers as well as regular updates are required while the use of unauthorized software is prohibited.

(8). Establishing the management mechanism of continuous business operation and implementing regular internal audits every year to ensure the effectiveness of the information security and personal data protection management system.

Specific cyber management plans and the resources input for the cyber security management:

(1). Security management with respect to information assets.

(2). Security management with respect to networks and computer systems.

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Four. Operational Overview

(3). System access control and security management with respect to the development and maintenance of the systems.
(4). Maintenance services of the outsourced professional computer and information companies.
(5). Listing the inspection and control on information security and personal data protection as items to be covered in the annual audit.
(6). Self-inspections shall be implemented annually based on the internal control system, and the implementation performance shall be reported to the Board of Directors along with the Statement of Internal Control System.

(II). A specification of losses arising as a result of material cyber security incidents in the most recent year and up to the publication date of this annual report, possible impact thereof and responsive actions therefor, and the reasons in case the losses cannot be reasonably estimated: None.

VII. Important contracts:

Unit: NTD thousand
February 28, 2026

Nature of contract	Party	Contract start/end date	Financing limit	Financing balance
Long-term borrowings	Hua Nan Commercial Bank	From October 2024 to October 2027	100,000	66,667
Long-term borrowings	Hua Nan Commercial Bank	From September 2025 to September 2028	200,000	183,333
Long-term borrowings	Chang Hwa Bank	From May 2025 to May 2026	50,000	12,500
Long-term borrowings	Chang Hwa Bank	From May 2025 to June 2030	100,000	86,667
Long-term borrowings	Chang Hwa Bank	From May 2025 to July 2030	100,000	88,333
Long-term borrowings	Chang Hwa Bank	From May 2025 to July 2030	150,000	0
Long-term borrowings	Shanghai Commercial & Savings Bank	From May 2025 to June 2032	100,000	90,476
Long-term borrowings	Shanghai Commercial & Savings Bank	From May 2025 to July 2032	225,000	206,250

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Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

I. Financial status

(I). The main reasons for any material change in the Company's assets, liabilities, or equity in the most recent two years, and the effect thereof; where the effect is of material significance, describe the measures to be taken.

Current assets increased by NT$468,658 thousand compared to the previous period:
(1). Cash and cash equivalents decreased by NT$352,601 thousand due to funding adjustments.
(2). Net accounts receivable increased by NT$646,087 thousand, mainly due to increased operating revenue in the second half of the year.
(3). Inventories increased by NT$49,769 thousand due to operational needs.
Non-current assets increased by NT$421,449 thousand compared to the previous period:
(1). Right-of-use assets increased by NT$345,258 thousand due to investment in land in Vietnam.
(2). Other non-current assets increased by NT$50,811 thousand, mainly due to an increase in prepayments for equipment.
Current liabilities increased by NT$377,905 thousand compared to the previous period:
(1). Notes payable increased by NT$172,484 thousand, accounts payable increased by NT$486,787 thousand, and other payables increased by NT$28,673 thousand, primarily due to increased operating activities in the second half of the year.
(2). Other current liabilities decreased by NT$265,107 thousand, mainly due to the reclassification of temporary receipts to other income.
(3). Short-term borrowings decreased by NT$50,509 thousand, and current portions of long-term borrowings decreased by NT$26,156 thousand due to funding adjustments.
Non-current liabilities increased by NT$497,783 thousand compared to the previous period:
(1). Long-term borrowings increased by NT$503,049 thousand due to funding adjustments.
Equity attributable to owners of the parent increased by NT$16,929 thousand.
(1). Retained earnings increased by NT$19,940 thousand, mainly due to net profit for the current period and actuarial gains.
Countermeasures of the Company:
(1). Develop operation models and innovative technologies in line with the trends and opportunities to increase product and technology innovation results and improve the overall added value.
(2). Improve the production and operation efficiency of the Company by implementing lean management throughout the Company to enhance the competitive advantages.
(3). Enhance the competitive advantages in the supply chain by improving the supply chain quality, productivity, cost, and lead time.
(4). Meet the needs of the customers in every aspect by providing comprehensive and attentive services.

II. Financial performance

(I). The main reasons for any material change in the Company's operating revenue, operating net profit, and net profit before tax in the most recent two years, expected sales volume and its basis, potential impact on the finance and business of the Company, and countermeasures

Consolidated operating revenue decreased by NT$679,995 thousand compared to the previous
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Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

year, primarily due to weakened customer demand and reduced order volumes.

Gross profit decreased by NT$249,430 thousand compared to the previous year, mainly as a result of the decline in operating revenue.
Operating expenses decreased by NT$7,080 thousand compared to the previous year, primarily attributable to a decrease in marketing expenses of NT$50,311 thousand, partially offset by an increase in administrative expenses of NT$36,263 thousand.
Operating income decreased by NT$242,350 thousand compared to the previous year, mainly due to the decrease in gross profit.
Non-operating revenue increased by NT$53,474 thousand compared to the previous year, primarily due to an increase in other income of NT$261,669 thousand.
Profit before tax decreased by NT$188,876 thousand compared to the previous year, primarily attributable to the decrease in operating income of NT$242,350 thousand, partially offset by the increase in non-operating revenue of NT$53,474 thousand.

III. Cash flow

(I). Analysis and description of variations in cash flow in the most recent year

| Year
Item | 2025 | 2024 | Increase (decrease)
ratio % |
| --- | --- | --- | --- |
| Cash flow ratio | -3.26 | -6.42 | 150.78% |
| Cash flow adequacy ratio | 85.59 | 109.75 | -22.01% |
| Cash reinvestment ratio | -0.83 | -6.36 | 86.95% |

The cash flow ratio in 2025 is more than 2024, primarily as a result of the increased net cash flow from operating activities.
The cash flow adequacy ratio in 2025 is less than 2024, primarily as a result of increased capital expenditure
The cash reinvestment ratio in 2025 is more than 2024, primarily as a result of the increased net cash flow from operating activities.

(II). Cash liquidity analysis for the next fiscal year

Unit: NTD thousand

Cash balance at the beginning of period	Annual net cash flow from operating activities	Annual cash outflow (inflow)	Cash surplus (deficit)
2,019,518	100,000	400,000	1,719,518

Operating activities: The Company estimates a net cash inflow from operating activities of approximately NT$100,000 thousand.
Investment activities: The Company estimates an increase in investment and equipment spending.
Financing activities: The Company estimates an increase in bank loans.

(III). Improvement plan for insufficient liquidity: N/A.

IV. The Impact of major capital expenditures in the most recent year on finance and business

(I). The impact of major capital expenditures in the most recent year on finance and business: In response to the expansion of our operation scale, the Company will focus on fitness devices in Taiwan plants and investment in related automated machinery and equipment is needed. If the Company cannot increase the revenue correspondingly, the finance will be affected negatively.

V. The reinvestment policy for the most recent year, the main reasons for the profit/loss

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Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

generated thereby, the improvement plan, and the investment plan for the coming year

(I). Reinvestment policy: Direct services to customers, complete product lines, and assurance of capacity.

(II). Profit/loss from reinvestment:

Name of investee	Cost of investment	Carrying amount	Current (loss) gain	Investment (loss) gain	Main reason and improvement plan
Fine Clear Co., Ltd.	14,197	16,325	2,124	340
Rexon Technology Corp., Ltd.	293,741	96,409	(14,106)	(11,205)	Investment in new product development is expected to improve product commercialization success rates.
Power Tool Specialists Inc.	196,465	170,023	1,607	1,543
Gold Item Group Limited	747,858	534,460	(87,021)	(87,021)	In response to increased tariffs between the U.S. and China, the Company plans to expand its production capacity in Southeast Asia in 2025 to enhance operational efficiency and reduce costs, thereby improving overall profitability.
Rexon Industrial (Vietnam) Corp., Ltd	597,971	605,660	(7,334)	(7,334)	The company was recently established and is expected to commence production in June 2026.
Allwin (Thailand) Co., Ltd.	99,000	78,686	(64,159)	(22,339)	In response to increased tariffs between the U.S. and China, the Company plans to expand its production capacity in Southeast Asia in 2025 to enhance operational efficiency and reduce costs, thereby improving overall profitability.
Subtotal	1,949,232	1,501,563	(168,889)	(126,016)

(III). Investment plans for the future: Develop operation models and innovative technologies in line with the trends and opportunities in 2026 to increase product and technology innovation results and improve the overall added value. Improve the production and operation efficiency of the Company by implementing lean management throughout the Company to enhance the competitive advantages, meet the needs of the customers, create a win-win situation in the partnership, and pursue optimal growth and sustainable operations of the Company.

VI. Risk management and assessment

(I). The impact of the fluctuation in interest, exchange rates and inflation on the profit and loss of the Company, and the countermeasures in the future:

Impact on the profit and loss of the Company: (NTD thousand; %)

Item	Net interest income (expense)	Net exchange profit (loss)	Ratio of net interest income/expense to net operating revenue	Ratio of net interest income/expense to profit before tax	Ratio of net exchange profit/loss to net operating revenue	Ratio of net exchange profit/loss to profit before tax
2025	16,916	(56,737)	-0.31%	-7.93%	1.05%	26.60%

(1). Fluctuation in interest rate: The borrows of the Company are floating rate liabilities. Thus, the fluctuation of the market interest rate will lead to the change in the effective interest rate of the borrowings and, if other variables remain unchanged, the net profit will fluctuate. With the level of borrowing in 2025 as the reference, whenever the interest rate increases or decreases by 1%, the net profit of the consolidated company in 2025 will decrease or increase by NT$10,273 thousand.

(2). Fluctuation in exchange rate: The Company has financial assets and liabilities denominated in foreign currencies. Assuming that other variables remain unchanged, when the exchange rate of TWD against USD, Euro, JPY and GBP fluctuates by 1% at the end of period, the net profit after tax will change by NT$22,697 thousand.

(3). Inflation: The Company purchases most of the merchandises from foreign countries while purchasing finished products mainly on the domestic market. Taking the purchase amount of about NT$4.0 billion for merchandises and materials in 2025 as an example, whenever the inflation rate increases by 1%, the cost of the Company in 2025 will increase by about NT$40,000 thousand.

Countermeasures in the future:

(1). Countermeasures for fluctuation in interest rate: Control the fluctuation in interest rate for

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Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

all the related financial products through analysis and assessment based on the flow of funds in the future to effectively cope with different potential risks brought about by the fluctuation in interest rate. As for long-term and short-term borrowings, maintain good interaction with banks to acquire the best interest rate level.

(2). Countermeasures for fluctuation in exchange rate: Build foreign exchange hedging mechanisms based on working capital plans and exchange development trends in the future. Operate hedging instruments under these mechanisms and maintain good relationship with banks to acquire the latest exchange information and perform hedging operation in a timely manner.

(3). Countermeasures for inflation: The Company meets customer needs for quality, after-sales services, R&D, and design on an ongoing basis to mitigate the impact of inflation (variation of economy). In addition, the Company continues to reduce the failure cost and waste to the extent of more than 10% by improving the revenue by more than 10% through the REXON101 project to mitigate the impact of inflation.

(II). Policies on engaging in high risk and high leverage investments, loaning funds to others, endorsement and guarantee as well as derivative transactions, main reasons for profit and loss, and countermeasures in the future:

The Company is not engaged in high risk and high leverage investments in the current year.
The loaning funds to others, endorsement and guarantee in which the Company is engaged in the current year are subjected to the “Procedure for Loaning Funds to Others” and the “Endorsement/Guarantee Procedure”.
The derivative transactions in which the Company is engaged are mainly for the mitigation of the foreign currency risk. Since the counterparties are international leading banks and premium domestic banks, the Company finds the probability of their violation is extremely low and, in case this occurs, the amount is not big.

(III). R&D plans and expected investment funds in the future.

Item no.	Plans for the most recent year	Current progress	R&D funds to be invested	Time to finish for mass production	Main factors influencing R&D success in the future
1	Development of new PET portable product	Depending on the development progress of the department	5,000	Depending on the development progress of the department	Lead time, quality, cost
2	Development of winch machine	Depending on the development progress of the department	5,000	Depending on the development progress of the department	Lead time, quality, cost
3	Woodworking machine: Development of new product	Depending on the development progress of the department	20,000	Depending on the development progress of the department	Lead time, quality, cost
4	Fitness device: Development of new product	Depending on the development progress of the department	60,000	Depending on the development progress of the department	Lead time, quality, cost
5	Fitness device and woodworking machine: R&D of control system	Depending on the development progress of the department	30,000	Depending on the development progress of the department	Reliability and life of control system
6	Development of innovative product	Preparation of samples for design and development	30,000	Depending on the market demand for the product	Lead time, quality, cost
7	Development of New Business	Preparation of samples for design and development	30,000	Depending on the market demand for the product	Lead time, quality, cost

(IV). Impact of the variations in important domestic/foreign policies and laws on the finance and business of the Company and countermeasures:

The Company pays attention to the variations in important domestic/foreign policies and laws at

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Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

all times and assesses their impact on the Company. There is no material adverse effect on the finance and business of the Company in the most recent year.

(V). Impacts of changes in technology (including cyber security risk) and industry on the finance and business of the Company and countermeasures: None.

The Company ensures understanding the development of the industry quickly by keeping close to the market and enhancing customer relationship. The Company is dedicated to innovation and research, and maintains relationship with the academic cycle to understand the changes in technology. There is no material adverse effect on the finance and business of the Company in the most recent year.

(VI). Impacts on crisis management and response measures in the event of changes in the corporate image: None.

(VII). Expected benefits and possible risks associated with mergers and acquisitions, and countermeasures: None.

(VIII). Expected benefits and possible risks associated with any plant expansion and countermeasures: The Company continues to expand the plant and equipment, and improve the process thoroughly in response to the needs of the customers. If the Company cannot increase the revenue correspondingly, the finance will be affected negatively. The Company will continuously perform leveling in the planning of the capacity to reduce the risk.

(IX). Risks associated with any centralization of purchasing or sales operations, and countermeasures: With this respect, the Company serves a handful of customers and continues to assess their financial status, the actual collection situation, and regularly assess the possibility of collecting receivables in order to reduce the risk.

(X). Impacts and risks from large transfers of shares held by our company's directors, supervisors, and large shareholders holding more than 10% of shares, and countermeasures: None.

(XI). Impacts and risks from variations in the Company's management rights and countermeasures: None.

(XII). Litigation and non-contentious cases: None.

(XIII). Other major risks and countermeasures: None

VII. Other important matters

(I). Risk management organization:

Risk management	Responsible department	Risk responsibility
Financial risk	General Administration Division	Responsible for calculation of the costs, funds procurement and control, and exchange and interest rate risk
Liquidity risk
Market risk	Marketing&Product Dept and Sales Dept	Responsible for assessment of customer's financial status, investigation and assessment of domestic and overseas markets, development of business, and sales
Credit risk
Strategic risk and operational risk	General Administration Division	Responsible for planning the operating strategies of the Company
	Manufacturing Division and Global Procurement Dept	Responsible for global procurement of (raw) materials, improvement of manufacturing capacity, minimum production costs, and products of optimal quality.
	Technical Division	Responsible for product strategies, improvement and development of new products, protection the intellectual property rights of the Company, and establishment and maintenance of the quality system.
	HR Division	Responsible for the personnel policy and corporate image of the Company

Six. Special Items

I. Information on affiliated companies

(I). Consolidated business report of affiliated companies

Organizational chart

Basic information on affiliated companies

February 28, 2026

Company name	Establishment date	Address	Paid-up capital	Primary business or production item	Division of work among the affiliated companies that have mutual business relationship
Rexon Industrial Corp., Ltd.	1973/4/30	No. 261, Renhua Rd., Dali Dist., Taichung City	1,814,735,000	Development, design and sale of drilling machines, power tools and fitness devices	Manufacturing of the machines at high unit price and development of new products
Power Tool Specialist, INC	1980/9/4	684 Huey Road, Rock Hill, SC, 29730 USA	US$100	Marketing and services of woodworking machines and power tools	Sales and service sites in the USA
Gold Item Group Ltd.	1990/01	P.O.Box957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands	US$25,000,000	A holding company engaging in international investment	None.
Gold Tech Group Ltd.	2011/5/31	Rooms 1806-7, Bank Centre 636 Nathan Rd, Kowloon	US$25,000,000	A holding company engaging in international investment	None.
Tongxiang Rexon Industrial Co., Ltd.	2012/6/27	No. 258, Gaoxinxi 2nd Rd., Tongxiang Economic Development Zone, Tongxiang City	RMB 154,424,322	Production and sale of electrical equipment, woodworking machines and their parts	Production of some drilling machines and woodworking machines that Rexon needs.
Rexon Technology Corp., Ltd.	1990/1/23	No. 261, Renhua Rd., Dali Dist., Taichung City	94,740,650	Research, development, design, manufacture, processing, and transaction of IT and communication product and components	Production of some controllers, instruments and parts that Rexon needs.
REXON INDUSTRIAL (VIETNAM) COMPANY LIMITED	2025/5/19	Plot CN-02, Industrial Zone No. 5, Xuan Truc Commune, Hung Yen Province, Vietnam	USD 20,000,000 VND 521,686,464	Manufacture and sale of fitness equipment.	Production of some fitness machine that Rexon needs.

Number of employees in the company

Six. Special Items

Information on the same directors of entities presumed to have a controlling and subordinate relationship: None.
Basic information on the directors, supervisors and President of the affiliated companies

March 22, 2026

Company name	Title	Name or representative	Shareholding
			Number of shares	Shareholding ratio
Rexon Industrial Corp., Ltd.	Chairman	Wang Kuan-Hsiang	1,986,178	1.09%
	Director	Representative of Kun Forever Co., Ltd.: Wang Kuan-Chuan	26,369,472	14.53%
	Director	Huang Chin-Hsiang	800,094	0.44%
	Director	Chen Chun-Wei	592,350	0.33%
	Director	Kuo Pu-Chao	107,000	0.06%
	Director	Yang Ching-Chi	0	0.00%
	Independent director	Lee Cherng	0	0.00%
	Independent director	Wu Chwan-Chyuan	0	0.00%
	Independent director	Chen Li-Tsung	0	0.00%
	General Manager	Lo Cheng-Chou	84,145	0.05%
Power Tool Specialist, INC	Chairman	Steve Pang	0	0.00%
	Director	Wang Kuan-Hsiang	0	0.00%
	Director	Wang Kuan-Chuan	0	0.00%
	Director	Chen Shu-Ping	0	0.00%
	General Manager	Ray Holbrook	0	0.00%
Gold Item Group Ltd.	Director	Corporate representative of Rexon: Wang Kuan-Hsiang	25,000,000	100%
Tongxiang Rexon Industrial Co., Ltd.	Chairman	Corporate representative of Rexon: Huang Chin-Hsiang	25,000,000	100%
	Director	Hans Hsieh	0	0.00%
	Director	Cheng Mei-Ling	0	0.00%
	Director	Chang Yu-Ming	0	0.00%
	Director	Tsai Peng-Chi	0	0.00%
	Director	Wei Chi-Feng	0	0.00%
	Supervisor	He Hsiu-Yuan	0	0.00%
	Supervisor	Hsu Sen-Yuan	0	0.00%
Gold Tech Group Ltd.	Director	Wang Chen Li-Mei	0	0.00%
	Director	Wang Kuan-Hsiang	0	0.00%
	Director	Chen Shu-Ping	0	0.00%
	Director	Huang Chin-Hsiang	0	0.00%
	Director	Chen Chun-Wei	0	0.00%
	Director	Lo Cheng-Chou	0	0.00%
	Director	He Hsiu-Yuan	0	0.00%
	Shareholder	Gold Item Group Ltd.	10,000	100%
Rexon Technology Corp., Ltd.	Chairman	Corporate representative of Rexon: Chen Chun-Wei	7,851,427	82.87%
	Director	Corporate representative of Rexon: He Hsiu-Yuan	7,851,427	82.87%
	Director	Corporate representative of Rexon: Kuo Pu-Chao	7,851,427	82.87%
	Director	Corporate representative of Rexon: Tank Chuang	7,851,427	82.87%
	Director	Corporate representative of Rexon: Lin Wei-Chen	7,851,427	82.87%

Six. Special Items

Company name	Title	Name or representative	Shareholding
			Number of shares	Shareholding ratio
	Supervisor	Corporate representative of Weidian: Wang Chen Li-Mei	56,102	0.59%
	Supervisor	Corporate representative of Weidian: Chen Shu-Chi	56,102	0.59%
REXON INDUSTRIAL (VIETNAM) COMPANY LIMITED	Director / General Manager	Corporate representative of Rexon: Chang Yu-Ming	20,000,000	100%

Operational overview of affiliated companies
Unit: NTD thousand

Company name	Paid-up capital	Total assets	Total liabilities	Net worth	Operating revenue	Operation income (loss)	Current profit/loss (after tax)
Rexon Industrial	1,814,735	8,187,123	4,225,137	3,961,986	5,335,758	105,517	176,308
Gold Item	747,858	515,429	-	515,429	-	-	(87,021)
	US$25,000	US$16,399	US$0	US$16,399	US$0	US$0	(US$2,791)
Tongxiang
Rexon Industrial	745,565	866,404	352,542	513,862	416,520	(85,821)	(87,030)
	US$25,000	US$27,566	US$11,217	US$16,349	US$13,358	(US$2,752)	(US$2,791)
P.T.S.	130,871	152,000	166	151,834	5,371	(1,206)	1,543
	US$4,058	US$4,836	US$5	US$4,831	US$172	(US$1,206)	(US$51)
Rexon Technology	94,741	170,509	54,175	116,334	154,063	(20,842)	(11,205)
Rexon Industrial (Vietnam)	597,971	621,227	151,567	469,660		(5,924)	(7,334)

Consolidated financial statements of affiliated companies and information on endorsement, guarantee, loaning funds to others as well as derivative transactions: The companies that shall be included in the consolidated financial statements of affiliated companies in 2025 under the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are identical with the companies to be included into the consolidated financial statements of the parent company and subsidiaries pursuant to IFRS 10 approved by the Financial Supervisory Commission. Furthermore, the information to be disclosed in the consolidated financial statements of the affiliated companies has also been disclosed in the aforementioned consolidated financial statements of the parent company and subsidiaries, and thereby it is not necessary to compile the consolidated financial statements of the affiliated companies.
Affiliation report: N/A.

II. Private placement of securities in the most recent year up to the publication date of the annual report

(I). Private placement of securities in the most recent year up to the publication date of the annual report: None.

III. Other necessary supplementary explanations

(I). Additional information required to be disclosed: None.
(II). Any of the matters stated in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act which may have significant impact on the shareholders' equity or the price of the securities in the most recent year up to the publication date of the annual report: None
(III). Information that is required to be recorded in Article 10, paragraph 1, subparagraph 3, item 8, the first paragraph of subparagraph 7, Article 17, and Article 21, subparagraphs 1 and 2, if it

95 -

Six. Special Items

has been reported and announced on the information reporting website designated by the commission, may be included in the index of the annual report information search, and the relevant reported and announced information shall be deemed to be recorded in the annual report: https://doc.twse.com.tw/server-java/t57sb01?step=1&colorchg=1&co_id=1515&year=&mtype=K&isnew=true

96 -
Rexon Industrial Corp., Ltd.

Chairman: Wang Kuan-Hsiang

AI assistant

REXON — Annual Report 2025

51841_rns_2026-04-14_d482eca5-320e-4c59-81c6-df20552c40d8.pdf

Rexon Industrial Corp., Ltd.

2025 Annual Report

Table of Contents

Two. Corporate Governance Report

I. Information on directors, supervisors, President, Vice President, Director, and department and branch heads

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

II. Remuneration to directors, supervisors, President and Vice President in the most recent year

(I). Remuneration to directors including independent directors

Two. Corporate Governance Report

(II). Remuneration to General Manager and Vice President

(III). Remuneration to five highest remunerated management personnel of the TWSE/TPEx listed company

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Two. Corporate Governance Report

Rexon Industrial Corp., Ltd.

Statement of Internal Control System

Rexon Industrial Corp., Ltd.

Chairman: Wang Kuan-Hsiang

General Manager: Lo Cheng-Chou

IV. Information on CPA professional fees

V. Information on change of CPAs

Two. Corporate Governance Report

Two. Corporate Governance Report

(I). Changes in equity of shareholders

(II). Transfer and change of equity

(III). Equity pledge information

Two. Corporate Governance Report

Three. Offering of Securities

I. Capital and share

Three. Offering of Securities

Three. Offering of Securities

II. Issuance of corporate bonds

Three. Offering of Securities

III. Issuance of preferred shares

IV. Issuance of overseas depositary receipts

V. Employee share subscription warrants

VI. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies

Three. Offering of Securities

VII. Implementation of the Company’s capital utilization plans

Three. Offering of Securities

II. Overview of market and production/sales

(I). Market analysis

Four. Operational Overview

Four. Operational Overview

Four. Operational Overview

Four. Operational Overview

Four. Operational Overview

VI. Cyber security management

Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

III. Cash flow

IV. The Impact of major capital expenditures in the most recent year on finance and business

V. The reinvestment policy for the most recent year, the main reasons for the profit/loss

Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

VI. Risk management and assessment

Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

Five. Review and Analysis of Financial Status and Operational Results, and Risk Assessment

VII. Other important matters

Six. Special Items

I. Information on affiliated companies

Six. Special Items

REXON Annual Report 2025