REXON — Interim / Quarterly Report 2025

Nov 20, 2025

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Stock Code:1515

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Three Months Ended March 31, 2025 and 2024

Address: No.261, Jen Hwa RD, Tali, Taichung City 412,Taiwan (R.O.C.) Telephone: (04)2491-4141

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (14) Segment information

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KPMG

台中市407544西屯區文心路二段201號7樓 電 話 Tel +886 4 2415 9168 7F, No.201, Sec.2, Wenxin Road, 傳 真 Fax +886 4 2259 0196 Taichung City 407059, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Review Report

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Rexon Industrial Corp., Ltd. and its subsidiaries as of March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “ Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $185,855 thousand and $207,361 thousand, constituting 3% and 2% of consolidated total assets as of March 31, 2025 and 2024, respectively, total liabilities amounting to $40,591 thousand and $62,393 thousand, both constituting 1% of consolidated total liabilities as of March 31, 2025 and 2024, respectively, and total comprehensive income(loss) amounting to $(28,760) thousand and $(42,833) thousand, constituting (146)% and (16)% of consolidated total comprehensive income (loss) for the three months ended March 31, 2025 and 2024, respectively.

Furthermore, as stated in Note 6(e), the other equity accounted investments of Rexon Industrial Corp., Ltd. and its subsidiaries in its investee companies of $16,320 thousand and $16,165 thousand as of March 31, 2025 and 2024, respectively, and its equity in net earnings on these investee companies of $15 thousand and $2 thousand for the three months ended March 31, 2025 and 2024, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Rexon Industrial Corp., Ltd. and its subsidiaries as of March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chen, ChengHsueh and Chang, Tzu-Hsin.

KPMG

Taipei, Taiwan (Republic of China) May 7, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2025, December 31, 2024, and March 31, 2024

(Expressed in thousands of New Taiwan Dollar)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit o loss 1150 Notes receivable, net (note 6(b)) 1160 Notes receivable due from related parties, net (note 6(b) and 7) 1170 Accounts receivable, net (note 6(b)) 1180 Accounts receivable due from related parties, net (note 6(b) and 7) 1200 Other receivables, net (note 6(c)) 1220 Current tax assets 130X Inventories (note 6(d)) 1479 Other current assets (note 6(i)) Non-current assets: 1550 Investments accounted for using equity method, net (note 6(e)) 1600 Property, plant and equipment (note 6(f) and 8) 1755 Right-of-use assets (note 6(g)) 1780 Intangible assets (note 6(h)) 1840 Deferred tax assets 1920 Guarantee deposits paid 1975 Net defined benefit asset, non-current 1990 Other non-current assets (note 6(i)) Total assets	March 31, 2025 Amount % $ 2,151,938 30 r 96 - 265 - 16,626 - 639,517 9 1,243 - 1,811 - 3,897 - 486,058 7 93,131 1 3,394,582 47 16,320 - 3,174,579 43 79,771 1 61,777 1 114,192 2 1,698 - 264,791 4 172,016 2 3,885,144 53 $ 7,279,726 100	December 31, 2024 Amount % 2,372,119 32 96 - 1,904 - 9,966 - 649,993 9 5,239 - 2,928 - 2,750 - 484,616 7 73,006 1 3,602,617 49 16,305 - 3,222,305 43 81,537 1 60,476 1 115,955 2 1,698 - 240,780 3 41,078 1 3,780,134 51 7,382,751 100	March 31, 2024 Amount % 3,666,800 40 96 - 688 - 21,631 - 842,997 9 3 - 8,435 - 3,427 - 596,563 7 108,842 1 5,249,482 57 16,165 - 3,433,646 37 80,706 1 60,349 1 124,474 1 2,680 - 219,531 3 44,802 - 3,982,353 43 9,231,835 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(k) and 8) 2130 Current contract liabilities (note 6(u)) 2150 Notes payable(note 6(j)) 2160 Notes payable to related parties (note 6(j) and 7) 2170 Accounts payable(note 6(j)) 2200 Other payables(note 6(n)) 2216 Dividends payable (note 6(s)) 2220 Other payables to related parties(note 7) 2230 Current tax liabilities 2365 Current refund liabilities(note 6(p)) 2280 Current lease liabilities (note 6(o)) 2320 Long-term borrowing, current portion(note 6(m) and 8) 2399 Other current liabilities, others (note 6(l)) Non-Current liabilities: 2540 Long-term borrowings (note 6(m) and 8) 2570 Deferred tax liabilities 2580 Non-current lease liaibilities (note 6(o)) Total liabilities Equity attributable to owners of parent:(note 6(s)) 3100 Ordinary shares 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity attributable to owners of parent 36XX Non-controlling interests Total equity Total liabilities and equity	March 31, 2025		December 31, 2024	December 31, 2024		March 31, 2024 Amount % 663,143 7 347,608 4 396,729 5 630 - 1,511,099 17 752,377 8 217,768 2 91 - 123,795 1 200,217 2 6,870 - 479,954 5 520,842 6 5,221,123 57 116,757 1 - - 20,784 - 137,541 1 5,358,664 58 1,814,735 20 586 - 2,156,839 23 (127,787) (1) 3,844,373 42 28,798 - 3,873,171 42 9,231,835 100
						Amount	%
						536,845 49,673 143,986 170 719,432 836,807 - 24 36,152 198,353 8,090 233,418 537619
						, 3,300,569
						87,500 219 20,898
						108,617
						3,409,186

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income For the three months ended March 31, 2025 and 2024 (Expressed in thousands of New Taiwan Dollar , except earnings per share)

4000 Operating revenue (note 6(u) and 7) 5000 Operating costs (note 6(d)、(q)) Gross profit from operations 6000 Operating expenses(note 6(q) and (v)): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses Net operating income 7000 Non-operating income and expenses: 7100 Interest income 7010 Other income 7020 Other gains and losses, net 7050 Finance costs, net (note 6(o)) 7060 Share of profit of associates accounted for using equity method (note 6(e)) 7900 Profit before income tax 7950 Income tax expense(note 6(r)) 8200 Profit 8300 Other comprehensive income (loss): 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation (note 6(q)) 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss(note 6(r)) 8300 Other comprehensive income (after tax) 8500 Comprehensive income Profit attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Earnings per share (NT dollars)(note 6 (t)) 9750 Basic earnings per share 9850 Diluted earnings per share	For the three months ended March 31	For the three months ended March 31
	2025 Amount % $ 1,014,493 100 875,976 86 138,517 14 62,251 6 53,984 5 38,603 4 154,838 15 (16,321) (1) 12,011 1 4,514 - 18,786 2 (4,826) - 15 - 30,500 3 14,179 2 3,033 - 11,146 2 10,621 1 (2,108) - 8,513 1 8,513 1 $ 19,659 3 $ 12,130 2 (984) - $ 11,146 2 $ 20,563 3 (904) - $ 19,659 3 $ 0.07 $ 0.07	2024
		Amount % 2,186,961 100 1,796,854 82 390,107 18 82,235 4 58,501 3 51,163 2 191,899 9 198,208 9 13,984 1 10,750 - 89,172 4 (6,594) - 2 - 107,314 5 305,522 14 61,578 3 243,944 11 30,882 1 (6,128) - 24,754 1 24,754 1 268,698 12 243,325 11 619 - 243,944 11 267,836 12 862 - 268,698 12 1.34
		1.33

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2025 and 2024

(expressed in thousands of New Taiwan Dollar)

Balance on January 1, 2024 Appropriation and distribution of retained earnings: Cash dividends of preference share Profit for the period Other comprehensive income for the period Comprehensive income Balance on March 31, 2024 Balance on January 1,2025 Appropriation and distribution of retained earnings: Cash dividends of ordinary share Profit for the period Other comprehensive income for the period Comprehensive income Balance on March 31, 2025					Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent						Non- controlling interests	Total equity 3,822,241 (217,768) 243,944 24,754 268,698 3,873,171 3,973,565 (181,473) 11,146 8,513 19,659 3,811,751
	Share capital	Capital surplus				Retained earnings							Other equity		Total equity attributable to owners of parent
	Ordinary shares				Legal reserve	Special reserve		Unappropriated retained earnings			Total		Exchange differences on translation of foreign financial statements
	$ 1,814,735 - - - - $ 1,814,735 $ 1,814,735 - - - - $ 1,814,735		586		475,923		143,923		1,511,436		2,131,282		(152,298) - - 24,511 24,511 (127,787) (119,135) - - 8,433 8,433 (110,702)		3,794,305		27,936 - 619 243 862 28,798 28,508 - (984) 80 (904) 27,604
			- - -		- - -		- - -
			-		-		-
			586		475,923		143,923
			586		506,988		152,298
			-		-		-
			- -		- -		- -
			-		-		-
			586		506,988		152,298

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2025 and 2024

(Expressed in thousands of New Taiwan Dollar)

Cash flows from operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit: Depreciation expenses Amortization expenses Interest expenses Interest income Shares of profit of associates accounted for using equity method Losses on disposal of property, plant and equipment Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Decrease (increase) in notes receivable Increase in notes receivable due from related parties Decrease in accounts receivable Decrease in accounts receivable due from related parties Decrease (increase) in other receivables (Increase) decrease in inventories Increase in other current assets (Increase) decrease in net defined benefit assets Decrease in other operating assets Total changes in operating assets Changes in operating liabilities: Increase in contract liabilities Decrease in notes payable Increase (decrease) in notes payable to related parties Decrease in accounts payable Increase in other payable Increase (decrease) in other payable to related parties Increase (decrease) in other current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash outflow generated from operations Interest received Interest paid Income taxes paid Net cash flows used in operating activities Cash flows from investing activities: Increase in prepayments for investments Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in prepayments for business facilities Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Repayments of long-term borrowings Payment of lease liabilities Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

For the three months ended March 31 2025 2024 $ 14,179 305,522 71,529 83,086 4,707 4,867 4,826 6,594 (12,011) (13,984) (15) (2) 492 10,682 69,528 91,243 1,639 (604) (6,660) (10,618) 10,476 167,077 3,996 5,931 1,028 (11,479) (1,442) 144,394 (24,125) (3,566) (24,011) 609 277 413 (38,822) 292,157 26,252 289,770 (10,320) (221,980) 35 569 (19,295) (335,845) (54,812) 11,263 269 (25) 24,624 (33,126) (33,247) (289,374) (72,069) 2,783 (2,541) 94,026 11,638 399,548 12,100 19,690 (4,915) (6,576) (1,146) (423) 17,677 412,239 (120,224) - (9,220) (15,325) 282 603 (1,999) (2,925) (16,321) (1,322) (147,482) (18,969) 205,000 408,864 (205,000) (308,864) (93,338) (120,127) (2,149) (2,049) (95,487) (22,176) 5,111 12,705 (220,181) 383,799 2,372,119 3,283,001 $ 2,151,938 3,666,800

2025 $ 14,179 71,529 4,707 4,826 (12,011) (15) 492 69,528 1,639 (6,660) 10,476 3,996 1,028 (1,442) (24,125) (24,011) 277 (38,822) 26,252 (10,320) 35 (19,295) (54,812) 269 24,624 (33,247) (72,069) (2,541) 11,638 12,100 (4,915) (1,146) 17,677 (120,224) (9,220) 282 (1,999) (16,321) (147,482) 205,000 (205,000) (93,338) (2,149) (95,487) 5,111 (220,181) 2,372,119 $ 2,151,938

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 2025 and 2024

(expressed in thousands of New Taiwan Dollar unless otherwise specified)

(1) Company history

Rexon Industrial Corp., Ltd. (the “Company”). was incorporated on April 30, 1973 and registered under the Ministry of Economic Affairs, R.O.C. The address of the company’ s registered office is No.261, Renhua Rd., Dali Dist., Taichung City 412, and Taiwan (R.O.C.). The Company’s common shares were listed on the Taiwan Stock Exchange (TWSE) on February 4, 1995. The company’s and its subsidiaries (together referred to as the “Group”) is in the business of manufacturing and selling drills, woodworking tools and fitness equipments.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements for the three months ended March 31, 2025 and 2024 were authorized for issuance by the board of directors on May 7, 2025.

(3) New standards, amendments and interpretations adopted

• (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

• ●Amendments to IAS21 “Lack of Exchangeability”

• (b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group’ s anticipated adoption of the new amendments beginning on January 1, 2026, are expected to have the following impacts:

• (i) Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

For financial assets with contingent features that are not related directly to a change in basic lending risks or costs (e.g. where the cash flows change depending on whether the borrower meets an ESG target specified in the loan contract), the amendments introduce an additional test to assess the “ solely payments of principal and interest on the principal amount outstanding” criterion. In accordance with the Q&A published by the FSC on February 26, 2025, the Group did not elect to early adopt the application guidance in Section 4.1 of the amendments on January 1, 2025.

The Group invested in ESG-linked bonds and may need to change the classification due to the above amendments. The Group is continually evaluating the impact of its initial adoption of the amendments on its consolidated financial statements.

(Continued)

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REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements”

Content of amendment Effective date per IASB The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. January 1, 2027

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

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REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(4) Summary of material accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as "the Regulations") and the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the material accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

(b) Basis of consolidation

• (i) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary	Pricipal activity Merchandise trading Investing and holding Manufacture and sale of electric components Investing and holding Manufacture of drills, woodworking tools and fitness equipment	Shareholding	Shareholding	March 31, 2024 Note % 96 Note 1 % 100 % 82.87 Note 1 % 100 % 100
			March 31, 2025 % 96 % 100 % 82.87 % 100 % 100	December 31, 2024 % 96 % 100 % 82.87 % 100 % 100
The Company The Company The Company Gold Item Gold Tech Group Ltd.	Power Tool Specialists Inc. (P.T.S.) Gold Item Group Ltd.(Gold Item) Rexon Technology Corp., Ltd. (Rexon Tech) Gold Tech Group Ltd. (Gold Tech) Tongxiang Rexon Industrial Co.,Ltd.(Tongxiang Rexon)

(Continued)

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REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1:Which is non-signnificant subsidiaries ， its financial statements have not been reviewed.

Note 2: On January 21, 2025, the board of directors of the Group resolved to establish a subsidiary in Vietnam. The total investment amount is USD 20 million. In March 2025, the Group contributed USD 641 thousand, which was recognised as a prepaid investment.

(ii) List of subsidiaries which are not included in the consolidated financial statements: None.

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period and allocated to current and deferred taxes based on its proportionate size.

For change in tax rate that is substantively enacted in an interim period, the effect of the change should immediately be recognized in the interim period in which the change occurs.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Except for the following, the preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024.

The accounting policies involved significant judgments and the information that have significant effect on the amounts recognized in the consolidated financial statements are as follows:

(a) Judgment of whether the Group has substantive control over its investees

(Continued)

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REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group holds 16% of the outstanding voting shares of Fine Clear Corp., Ltd. and is the single largest shareholder of the investee. Although the remaining 84% of Fine Clear Corp., Ltd.’s shares are not concentrated within specific shareholders, the Group still cannot obtain more than half of the total number of Fine Clear Corp., Ltd.’s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on Fine Clear Corp., Ltd.

(6) Explanation of significant accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the 2024 consolidated financial statements. Please refer to Note 6 of the 2024 annual consolidated financial statements.

(a) Cash and cash equivalents

March 31, 2025 Petty cash and cash on hand $ 1,851 Checking and demand deposits 1,306,319 Time deposits 843,768 Cash and cash equivalents in the consolidated statement of cash flows $ 2,151,938	December 31, 2024 1,889 1,334,069 1,036,161 2,372,119	March 31, 2024
		2,150 2,592,650 1,072,000
		3,666,800

(b) Notes and accounts receivables (include related party)

March 31, 2025 Notes receivable from operating activities $ 265 Notes receivable from operating activities- related parties 16,626 Less: Loss allowance - $ 16,891 Accounts receivable-measured at amortized cost $ 641,120 Accounts receivable from related parties-measured at amortized cost 1,243 Less: Loss allowance (1,603) $ 640,760	December 31, 2024 1,904 9,966 - 11,870 651,596 5,239 (1,603) 655,232	March 31, 2024 688 21,631 - 22,319 844,600 3 (1,603) 843,000

(i) The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

(Continued)

13

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

March 31, 2025 Gross carrying amount Weighted- average loss rate Loss allowance provision Current $ 488,549 0.07% 359 1 to 90 days past due 170,272 0.62% 1,048 91 to 180 days past due 433 45.25% 196 181 to 360 days past due - - Over 360 days past due - - Total $ 659,254 1,603 December 31, 2024 Gross carrying amount Weighted- average loss rate Loss allowance provision Current $ 474,763 0.02% 74 1 to 90 days past due 193,942 0.79% 1,529 91 to 180 days past due - - - 181 to 360 days past due - - - Over 360 days past due - - - Total $ 668,705 1,603 March 31, 2024 Gross carrying amount Weighted- average loss rate Loss allowance provision Current $ 816,677 0.05% 436 1 to 90 days past due 50,242 2.32% 1,166 91 to 180 days past due 3 50.61% 1 181 to 360 days past due - - - Over 360 days past due - - - Total $ 866,922 1,603 (ii) The movement in the allowance for notes and accounts receivables were as follows: 2025 2024 Balance at January 1 (which is balance at March 31) $ 1,603 1,603	March 31, 2025
		Loss allowance provision 359 1,048 196 - -
		1,603
		Loss allowance provision 74 1,529 - - - 1,603
	Weighted- average loss rate 0.02% 0.79% - - - March 31, 2024
		Loss allowance provision 436 1,166 1 - -
		1,603

(iii) None of the receivables was pledged as collateral as of March 31, 2025, December 31, 2024 and March 31, 2024.

(Continued)

14

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Other receivables

March 31, 2025 Other receivables $ 13,058 Less: Loss allowance (11,247) $ 1,811	December 31, 2024 14,175 (11,247) 2,928	March 31, 2024 19,682 (11,247) 8,435

(i) As of March 31, 2025, December 31, 2024 and March 31, 2024, there are no other receivables which are past due but not impaired.

• (ii) The movement in the allowance for other receivables was as follows:

2025 Balance on January 1 (which is balance at March 31) $ 11,247	2024 11,247

(d) Inventories

March 31, 2025 Finished goods $ 190,228 Work in progress 100,239 Materials 83,603 Parts 107,046 Merchandise 4,942 $ 486,058	December 31, 2024 209,806 44,577 72,439 152,602 5,192 484,616	March 31, 2024 213,744 141,231 96,806 139,293 5,489 596,563

Details of inventory related losses (profit) were as follows:

Inventory scrap loss Inventory shortage Revenue from sale of scraps	For the three months ended March 31, 2025 2024 369 2,555 - - (427) (1,780) (58) 775
	2025 369 - (427) (58)

As of March 31, 2025, December 31, 2024 and March 31, 2024 inventories were not pledged as collateral.

(Continued)

15

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(e) Investments accounted for using equity method

A summary of the Group’s financial information for investments accounted for using equity method at the reporting date is as follows:

Associates	March 31, 2025 $ 16,320	December 31, 2024 16,305	March 31, 2024
			16,165

(i) Associates

Affiliated company’s information:

Name of Associates Fine Clear Corp., Ltd.	Main operating location/ Nature of relationship with the Group Registered Country of the Company Sale of pneumatic nail gun and accessories, which is the Group’s investment Taiwan	Main operating location/ Nature of relationship with the Group Registered Country of the Company Sale of pneumatic nail gun and accessories, which is the Group’s investment Taiwan	Proportion of shareholding and voting rights
			March 31, 2025 December 31, 2024 March 31, 2024 % 16 % 16 % 16
		Taiwan

The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

Carrying amount of individually insignificant associates’ equity	March 31, 2025 $ 16,320	December 31, 2024 16,305	March 31, 2024
			16,165

The Group’ s board of directors decided to invest in Aowen Electromechanical Technology (Thailand) Co., Ltd. on November 6, 2024, with an amount of $3,000 thousand. The investment was recorded as a prepaid investment on March 31, 2025, and the registration change was completed in April 2025.

		For the	three months ended
			March 31,
		2025	2024
Attributable to the Group:
Profit from continuing operations	$		15	2
Other comprehensive income		-	-
Comprehensive income	$		15	2

(ii) Investments pledge

As of March 31, 2025, December 31, 2024 and March 31, 2024 the Group did not provide any investments accounted for using the equity method as collateral for its loans.

(Continued)

16

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) The unreviewed financial statements of investment accounted for using equity method

Investments were accounted for by using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

(f) Property, plant and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Group for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024 were as follows:

Cost or deemed cost: Balance on January 1, 2025 Additions Disposal Reclassification Effect of movements in exchange rates Balance on March 31, 2025 Balance on January 1, 2024 Additions Disposal Reclassification Effect of movements in exchange rates Balance on March 31, 2024 Depreciation : Balance on January 1, 2025 Depreciation Disposal Impairment loss Effect of movements in exchange rates Balance on March 31, 2025 Balance on January 1, 2024 Depreciation Disposal Effect of movements in exchange rates Balance on March 31, 2024 Carrying amounts： Balance on January 1, 2025 Balance on March 31, 2025 Balance on January 1, 2024 Balance on March 31, 2024	Land $ 1,178,587 - - - 67 $ 1,178,654 $ 1,178,255 - - - 206 $ 1,178,461 $ - - - - - $ - $ - - - - $ - $ 1,178,587 $ 1,178,654 $ 1,178,255 $ 1,178,461	Buildiings 2,905,953 4,292 - - 10,992 2,921,237 2,855,488 2,621 - - 29,676 2,887,785 1,227,116 28,449 - - 4,354 1,259,919 1,095,568 29,947 - 10,393 1,135,908 1,678,837 1,661,318 1,759,920 1,751,877	Machinery and equipment 894,535 3,353 (8,368) 4,814 2,115 896,449 867,518 160 (2,038) 837 5,678 872,155 644,112 23,773 (7,781) - 1,610 661,714 496,648 25,916 (1,840) 3,795 524,519 250,423 234,735 370,870 347,636	Mold and tooling equipment 823,546 854 (3,622) 516 1,752 823,046 844,702 3,190 (41,020) 427 4,559 811,858 739,850 14,320 (3,447) - 1,324 752,047 698,145 21,778 (31,936) 2,904 690,891 83,696 70,999 146,557 120,967	Office equipment and other facilities 155,844 553 (72) - 350 156,675 167,287 1,204 (11,841) - 983 157,633 125,082 2,470 (60) - 310 127,802 128,859 3,045 (9,838) 862 122,928 30,762 28,873 38,428 34,705	Total 5,958,465 9,052 (12,062) 5,330 15,276
						5,976,061
						5,913,250 7,175 (54,899) 1,264 41,102
						5,907,892
						2,736,160 69,012 (11,288) - 7,598
						2,801,482
						2,419,220 80,686 (43,614) 17,954
						2,474,246
						3,222,305
						3,174,579
						3,494,030
						3,433,646

(Continued)

17

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) In response to the need for expansion in the future, the Group bought the farmland near to its factory, costing $316,060 thousand, but the ownership of the land is temporarily not allowed to be transerred to the Group because the farmland is legally for agricultural purpose. Therefore, the farmland now is registered in the name of a shareholder who has the identity of natural person and has pledged to the Group for security concerns.

• (ii) Gain or losses of disposal, please refer to Note 6(w).

• (iii) As of March 31, 2025, December 31, 2024 and March 31, 2024, property, plant and equipment of the Group were pledged as collateral for long-term loans; please refer to note 8.

(g) Right-of-use assets

The Group leases many assets including land, buildings and vehicles. Information about leases for which the Group as a lessee were presented below:

Cost: Balance on January 1, 2025 Additions Reductions Effect of movement in exchange rates Balance on March 31, 2025 Balance on January 1, 2024 Additions Reductions Effect of movement in exchange rates Balance on March 31, 2024 Accumulated depreciation : Balance on January 1, 2025 Depreciation Reductions Effect of movement in exchange rates Balance on March 31, 2025 Balance on January 1, 2024 Depreciation Reductions Effect of movement in exchange rates Balance on March 31, 2024 Carrying amount: Balance on January 1,2025 Balance on March 31, 2025 Balance on January 1, 2024 Balance on March 31, 2024	Land $ 89,287 - - 874 $ 90,161 $ 86,255 - - 2,343 $ 88,598 $ 18,620 751 - 123 $ 19,494 $ 14,084 1,038 - 272 $ 15,394 $ 70,667 $ 70,667 $ 72,171 $ 73,204	Vehicles 17,535 - - - 17,535 20,393 3,517 (7,818) - 16,092 6,665 1,766 - - 8,431 15,046 1,362 (7,818) - 8,590 10,870 9,104 5,347 7,502	Total 106,822 - - 874 107,696 106,648 3,517 (7,818) 2,343 104,690 25,285 2,517 - 123 27,925 29,130 2,400 (7,818) 272 23,984 81,537 79,771 77,518 80,706

(Continued)

18

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of March 31, 2025, December 31, 2024 and March 31, 2024, the right-of-use assets of the Group were not pledged as collateral.

(h) Intangible assets

The costs, amortization and impairment loss of the intangible assets of the Group for the three months ended March 31, 2025 and 2024 , were as follows:

Goodwill Costs: Balance at January 1, 2025 $ 43,293 Additions - Reductions - Reclassification - Effect of movement in exchange rates - Balance at March 31, 2025 $ 43,293 Balance at January 1, 2024 $ 43,293 Additions - Reductions - Effect of movement in exchange rates - Balance at March 31, 2024 $ 43,293 Amortization: Balance at January 1, 2025 $ - Amortization - Reductions - Effect of movement in exchange rates - Balance at March 31, 2025 $ - Balance at January 1, 2024 $ - Amortization - Reductions - Effect of movement in exchange rates - Balance at March 31, 2024 $ - Carrying value: Balance at January 1, 2025 $ 43,293 Balance at March 31, 2025 $ 43,293 Balance at January 1, 2024 $ 43,293 Balance at March 31, 2024 $ 43,293	Computer Software 193,655 1,999 (9,408) - 130 186,376 176,565 2,925 (1,539) 335 178,286 176,472 4,596 (9,408) 121 171,781 157,623 4,867 (1,539) 279 161,230 17,183 14,595 18,942 17,056	Patent - - - 4,000 - 4,000 - - - - - - 111 - - 111 - - - - - - 3,889 - -	Total 236,948 1,999 (9,408) 4,000 130 233,669 219,858 2,925 (1,539) 335 221,579 176,472 4,707 (9,408) 121 171,892 157,623 4,867 (1,539) 279 161,230 60,476 61,777 62,235 60,349

As of March 31, 2025, December 31, 2024 and March 31, 2024, the intangible assets of the Group were not pledged as collateral.

(Continued)

19

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Other current assets and other non-current assets

The details of other current assets and other non-current assets were as follows:

Other current assets: Prepayments Bussiness tax receivables Others Other non-current assets: Prepayments for equipment Prepaid investment Others	March 31, 2025 $ 53,976 23,821 15,334 $ 93,131 March 31, 2025 $ 50,730 120,224 1,062 $ 172,016	December 31, 2024 39,063 20,195 13,748 73,006 December 31, 2024 39,739 - 1,339 41,078	March 31, 2024
			54,711 41,484 12,647
			108,842
			March 31, 2024 42,364 - 2,438 44,802

For details on prepaid investment, please refer to Note 4(b) and 6(e).

• (j) Trade and notes payable

Trade payable Notes payable Short-term borrowings Unsecured bank loans Secured bank loans Unused short-term credit lines Range of interest rate	$ $ $ $ $	March 31, 2025 700,137 133,871 834,008 March 31, 2025 400,000 138,795 538,795 3,235,845 1.725%~4.3%	December 31, 2024 719,432 144,156 863,588 December 31, 2024 400,000 136,845 536,845 3,482,492 1.75%~4.3%	March 31, 2024 1,511,099 397,359 1,908,458 March 31, 2024 500,000 163,143 663,143
				3,371,296
				1.66%~4.3%

(k) Short-term borrowings

(Continued)

20

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) Additional short-term borrowings and repayments

For the three months ended March 31, 2025 and 2024, the Group had the additional short-term borrowings amounting to $205,000 thousand and $408,864 thousand, with a range of interest rate 1.785%~1.825% and 1.66%~3.5%, maturing in a range from February, 2025 to June, 2025 and May, 2024 to June, 2024.

For the three months ended March 31, 2025 and 2024,the Group had the repayments were $205,000 thousand and $308,864 thousand, respectively.

• (ii) Collateral for short-term borrowings

For the collateral for short-term borrowings, please refer to note 8.

(l) Other current liabilities

The details of other current liabilities were summarized as follows:

March 31, 2025 Temporary receipt $ 540,658 Advance receipts 3,566 Others 6,460 $ 550,684	December 31, 2024 528,301 3,566 5,752 537,619	March 31, 2024
		511,037 3,566 6,239
		520,842

Temporary receipt is mainly received from cancellation payment and mold sharing payment.

(m) Long-term borrowings

The details of long-term borrowings were as follows:

March 31, 2025 Secured bank loans $ 170,222 Unsecured bank loans 58,333 Less : current portion (161,888) Total $ 66,667 Unused long-term credit lines $ 157,301 Range of interest rate 1.325%~6.532%	December 31, 2024 250,085 70,833 (233,418) 87,500 155,092 1.2%~4%	March 31, 2024 432,378 164,333 (479,954) 116,757 1,408,000 1.075%~6.66%

(i) Additional long-term borrowings and repayments

There was no such transaction for the three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025 and 2024,the Group had the repayments were $93,338 thousand and $120,127 thousand, respectively.

(Continued)

21

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Collateral for long-term borrowings

For the collateral for long-term borrowings, please refer to note 8.

(n) Other payables

Advertising expenses Year-end bonus, salary, and unused vacation bonus. Employee compensation and supervisor compensation. Others	March 31, 2025 $ 538,549 69,523 53,746 119,923 $ 781,741	December 31, 2024 531,431 124,360 51,824 129,192 836,807	March 31, 2024
			494,685 71,988 76,208 109,496
			752,377

(o) Lease liabilities

Lease liabilities
March 31, 2025 Current $ 7,732 Non-current $ 19,107 For the maturity analysis, please refer to note 6(x).	December 31, 2024 8,090 20,898	March 31, 2024
		6,870
		20,784

The amounts recognized in profit or loss were as follows:

Interest expense on lease liabilities	For the three months ended March 31	For the three months ended March 31
	2025 $ 93	2024 74

The amounts recognized in the statement of cash flows for the Group were as follows:

Total cash outflow for leases		For the three months ended March 31	For the three months ended March 31
			2024
			2,123

The lease period for the Group’s lease of land, buildings and vehicles is two to ten years.

(p) Current refund liabilities

March 31, 2025 Current refund liabilities $ 209,912	March 31, 2025	December 31, 2024 198,353	March 31, 2024
			200,217

(Continued)

22

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Refund liabilities are the amount expected to be paid to the customer due to defective sales quality of automatic facilities and fitness equipment.

(q) Employee benefits

(i) Defined benefit plans

In prior fiscal year, there was no material volatility of the market, reimbursement and settlement or other material one-time events. As a result, pension cost in the accompanying interim financial statements is measured and disclosed as of December 31, 2024 and 2023.

The details of the Group's expenses were as follows:

Operating costs Selling expenses Adminstrative expenses Research and development expenses Total		For the three months ended March 31	For the three months ended March 31
	2025 $ - 43 - - $ 43		2024
			553 35 119 130
			837

(ii) Defined contribution plans

The Group's pension expenses under the pension plan cost to the Bureau of Labor Insurance were as follows:

were as follows:
		For the three months ended
		March 31
		2025	2024
Operating costs	$	2,964	3,583
Selling expenses		272	287
Adminstrative expenses		1,161	826
Research and development expenses		795	786
Total	$	5,192	5,482

Except for the Company and Rexon Technology Corp., Ltd., other subsidiaries adopted the defined contribution method under their local law, and accordingly, the pension costs were $1,554 thousand and $1,702 thousand.

(Continued)

23

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Income taxes

The details of the Group's income tax expenses were as follows:

Current tax expense Current period Deferred tax expense Origination and reversal of temporary differences Income tax expense		For the three months ended March 31	For the three months ended March 31
			2024
			59,319 2,259
			61,578

The amounts of income tax recognized directly in other comprehemsive income for the three months ended March 31, 2025 and 2024 were as follows:

Item that may be reclassified subsequently to profit or loss: Exchange differences on translation

The income tax returns of the company for the years through 2023 were assesed and approved by the tax authorities ； The income tax returns of the Rexon Tech for the years through 2022 were assesed and approved by the tax authorities .

(s)

Capital and other equity

Except for the following disclosure, there was no significant change in capital and other equity for the periods from January 1 toMarch 31, 2025 and 2024. For the related information, please refer to note 6 (s) of the consolidated financial statements for the year ended December 31, 2024.

(i) Retained earnings

The Company's article of incorporation stipulate that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

The Company shall first take into consideration its current and future development plan, investment environment, capital requirement, the domestic and global competition, as well as the long-term interests of stockholders in determining the stock or cash dividends to be paid. The dividends appropriated for distribution shall not be less than 20% of the current and priorperiod earnings that remain undistributed. The cash dividends shall not be less than 20% of total dividends.

(Continued)

24

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Special reserve

In accordance with the requirement of Financial Supervisory Commission, a portion of earnings shall be allocated as special earnings reserve during earnings distribution. The special earnings reserve was distributed from the current undistributed earnings, which was income after income tax plus other items, and undistributed earnings of prior period. A portion of undistributed prior-period earnings shall be reclassified as special earnings reserve and does not qualify for earnings distribution to account for cumulative changes to other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

As of March 31, 2025, December 31, 2024 and March 31, 2024 the amounts of such special reserves were $152,298 thousand, $152,298 thousand and $143,923 thousand, respectively.

2) Earnings distribution

The amount of cash dividends on appropriations of earnings for 2024 and 2023 had been approved during the board meeting on February 26, 2025 and February 27, 2024, as follows:

2024 Amount per share Total amount Dividends distributed to ordinary shareholders Cash $ 1.0 181,473 OCI accumulated in reserves, net of tax Balance at January 1, 2025 Exchange differences on foreign operations Balance at March 31, 2025 Balance at January 1, 2024 Exchange differences on foreign operations Balance at March 31, 2024		2023 Amount per share Total amount 1.2 217,768 Exchange differences on translation of foreign financial statements $ (119,135) 8,433 $ (110,702) $ (152,298) 24,511 $ (127,787)

• (ii) OCI accumulated in reserves, net of tax

(Continued)

25

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Earings per share

Basic earings per share Net profit attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares Diluted earings per share Net profit attributable to ordinary shaleholders of the Company Weighted-average number of ordinary shares Effect of employee share bonus Weighted average number of ordinary shares (diluted)		For the three months ended March 31	For the three months ended March 31
			2024
			243,325
			181,473
			1.34
			243,325
			181,473 1,008
			182,481
			1.33

(u) Revenue from contracts with customers

(i) Details of revenue

(ii)	For the three months ended March 31 2025 2024 Primary geographical markets America $ 897,636 2,021,424 Europe 80,292 113,847 Asia 36,565 51,690 $ 1,014,493 2,186,961 Major products Woodworking tools $ 157,713 153,963 Fitness equipment 780,325 1,861,331 Other 76,455 171,667 $ 1,014,493 2,186,961 Contract balances March 31, 2025 December 31, 2024 March 31, 2024 Contract liabilities $ 75,925 49,673 347,608	March 31, 2025		For the three months ended March 31	For the three months ended March 31
					2024
					2,021,424 113,847 51,690
					2,186,961
					153,963 1,861,331 171,667
					2,186,961
					March 31, 2024 347,608

For details on trade receivables and allowance for impairment, please refer to note 6(b).

(Continued)

26

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The amount of revenue recognized for the three months and nine months ended March 31, 2025 and 2024, that were included in the contract liability balance at the beginning of the period were $1,695 thousand and $6,574 thousand, respectively.

(v) Remunerations to employees and directors

According to the Articles of Association, once the Company has annual profit, it should at least appropriate 5% of the profit to its employees and 5% or less to its directors as remuneration. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The pervading target given via cash or shares includes those dependent employees of the Company’s subsidiaries under certain requirements.

For the three months ended March 31, 2025 and 2024 the Company estimated its employee remuneration amounting to $1,707 thousand and $26,798 thousand, and directors' remuneration amounting to $205 thousand and $4,020 thousand.The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees and directors of each period, multiplied by the percentage of remuneration of employees. If there are any subsequent adjustments to the actual remuneration amounts , the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

For the years ended December 31, 2024 and 2023, the remunerations to employees amounted to $45,297 thousand and $36,189 and the remunerations to directors amounted all to $6,400, respectively. There were no differences between the estimated amounts and the actual remuneration paid, and the information is available on the Market Observation Post System website.

(w) Non-operating income and expenses

(i) Interest income

The details of interest income were as follows:

Interest income－bank deposits		For the three months ended March 31	For the three months ended March 31
			2024
			13,984

(ii) Other income

The details of other income were as follows:

Rent income Other		For the three months ended March 31	For the three months ended March 31
			2024
			1,397 9,353
			10,750

(Continued)

27

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Other income and losses

The details of other income and losses were as follows:

Net foreign exchange gains Net losses on disposal of property, plant and equipment Other Net other income and losses

• (iv) Finance expenses

Finance expenses
		For the	three months ended
			March 31
		2025		2024
Interest expenses	$	(4,826)		(6,594)

(x) Financial Instruments

• (i) Credit risk

Except for the contention mentioned below, there was no significant change in the fair value of the Group’ s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For related information, please refer to note 6(x) of the consolidated financial statements for the year ended December 31, 2024.

1) Concentration of credit risk

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group reviewed the concentrations of credit risk arising from major customer at percentages below 46%, 37% and 60%, respectively, of the total trade receivables. The other top three clients contributed no more than 36%, 44% and 23%, respectively, of the total receivables.

2) Receivables

For credit risk exposure of notes and accounts receivable, please refer to note 6(b). Other financial assets at amortized cost inlcudes other receivables. For the details and loss allowance, please refer to note 6(c).

(Continued)

28

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

March 31, 2025 Non-derivative financial liabilities Secured bank loans Unsecured loans Leased liabilities (current and non-current) Payables December 31, 2024 Non-derivative financial liabilities Secured bank loans Unsecured loans Lease liabilities (current and non-current) Payables March 31, 2024 Non-derivative financial liabilities Secured bank loans Unsecured loans Lease liabilities (current and non-current) Payables	Carrying amount $ 309,017 458,333 26,839 1,797,515 $ 2,591,704 $ 386,930 470,833 28,988 1,700,419 $ 2,587,170 $ 595,521 664,333 27,654 2,878,694 $ 4,166,202	Contractual cash flows 374,159 400,870 23,915 1,797,515 2,596,459 466,432 401,748 29,799 1,700,419 2,598,398 712,122 554,843 28,508 2,878,694 4,174,167	1-12 months 306,631 400,870 7,732 1,797,515 2,512,748 377,718 401,748 8,377 1,700,419 2,488,262 619,996 529,586 7,149 2,878,694 4,035,425	1-2 years 50,740 - 6,748 - 57,488 63,473 - 7,249 - 70,722 83,779 25,257 5,325 - 114,361	2-5 years 16,788 - 9,435 - 26,223 25,241 - 10,498 - 35,739 8,347 - 10,154 - 18,501	more than 5 years - - - -
						-
						- - 3,675 -
						3,675
						- - 5,880 -
						5,880

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

• (iii) Currency risk

1) Exposure to foreign currency risk

The Group’ s significant exposure to foreign currency risk of financial assets and liabilities were as follows:

Financial Assets Monetary items USD EUR JPY GBP Financial Liabilities Monetary items USD EUR	March 31, 2025 Foreign Currency Exchange Rates NTD $ 77,285 33.21 2,566,635 24 35.97 863 16,275 0.2227 3,624 5 43.05 215 8,747 33.21 290,488 234 35.97 8,417	March 31, 2025 Foreign Currency Exchange Rates NTD $ 77,285 33.21 2,566,635 24 35.97 863 16,275 0.2227 3,624 5 43.05 215 8,747 33.21 290,488 234 35.97 8,417	December 31, 2024 Foreign Currency Exchange Rates NTD 79,260 32.79 2,598,936 24 34.14 819 10,752 0.2099 2,257 5 41.19 206 2,988 32.79 97,981 227 34.14 7,750	March 31, 2024	March 31, 2024
	Foreign Currency $ 77,285 24 16,275 5 8,747 234	Exchange Rates 33.21 35.97 0.2227 43.05 33.21 35.97		Foreign Currency 72,558 28 214,809 5 3,578 232	Exchange Rates NTD 32.00 2,321,856 34.46 965 0.21 45,432 40.39 202 32.00 114,496 34.46 7,995

(Continued)

29

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts and other receivables, borrowings, and accounts and other payables that are denominated in foreign currency. A strengthening (weakening) of 1% of the TWD against the USD, EUR, JPY, and GBP as of March 31, 2025 and 2024 would have increased (decreased) the net profit after tax by $18,179 thousand and $17,968 thousand, respectively. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The analysis is performed on the same basis for perior year.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the three months ended March 31, 2025 and 2024, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to $19,307 thousand and $99,884 thousand, respectively.

(iv) Interest rate analysis

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date.

Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate which increases or decreases by 1% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 1%, with all other variable factors remaining constant, the Group’ s net income would have increasd/decreased by $6,139 thousand and $10,079 thousand for the three months ended March 31, 2025 and 2024, respectively. This is mainly due to the Group’s borrowings in variable rates.

• (v) Fair value of financial instruments

• 1) Categories and fair value of financial instruments

The fair value of financial assets at fair value through profit or loss and financial assets measured at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

30

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amount Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss $ 96 Financial assets measured at amortized cost Cash and cash equivalents 2,151,938 Notes receivable, trade receivable, and other receivable (including related parties) 659,462 Guarantee deposits paid 1,698 $ 2,813,194 Financial liabilities at amortized cost Short-term borrowings $ 538,795 Notes payable, accounts payable, and other payable (including related parties) 1,616,042 Dividends payable 181,473 Long-term borrowings, current portion 161,888 Loan-term borrowings 66,667 Leases liabilities 26,839 $ 2,591,704 Carrying amount Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss $ 96 Financial assets measured at amortized cost Cash and cash equivalents 2,372,119 Notes receivable, trade receivable, and other receivable (including related parties) 670,030 Guarantee deposits paid 1,698 $ 3,043,943 Financial liabilities at amortized cost Short-term borrowings $ 536,845 Notes payable, accounts payable, and other payable (including related parties) 1,700,419 Long-term borrowings, current portion 233,418 Loan-term borrowings 87,500 Leases liabilities 28,988 $ 2,587,170		March 31, 2025	March 31, 2025	March 31, 2025
		Fair Value Level 1 Level 2 Level 3 - - 96 - - - - - - - - - - - 96 - - - - - - - - - - - - - - - - - - - - - December 31, 2024	Fair Value
					Total 96 - - -
					96
					- - - - - -
					-
		Level 1 - - - - - - - - - - -	Fair Value
			Level 2 - - - - - - - - - - -	Level 3 96 - - - 96 - - - - - -	Total 96 - - -
					96
					- - - - -
					-

(Continued)

31

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss Financial assets measured at amortized cost Cash and cash equivalents Notes receivable, trade receivable, and other receivable (including related parties) Guarantee deposits paid Financial liabilities at amortized cost Short-term borrowings Notes payable, accounts payable, and other payable(including related parties) Dividends payable Long-term borrowings, current portion Loan-term borrowings Lease liabilities		March 31, 2024	March 31, 2024	March 31, 2024
	Carrying amount $ 96 3,666,800 873,754 2,680 $ 4,543,330 $ 663,143 2,660,926 217,768 479,954 116,757 27,654 $ 4,166,202	Level 1 - - - - - - - - - - - -	Fair Value
			Level 2 - - - - - - - - - - - -	Level 3 96 - - - 96 - - - - - - -	Total 96 - - -
					96
					- - - - - -
					-

• 2) Valuation techniques for financial instruments not measured at fair value

The Group’ s valuation techniques and assumption used for financial instruments not measured at fair value are as follows:

For financial liabilities measured at amortized cost, if there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

• 3) Valuation techniques for financial instruments measured at fair value

The fair value of financial instruments is quoted prices if quoted prices are from an active market. Published prices from the main exchange and central government bonds regarded as usually-traded securities are both basis of fair values of listed equity instruments and debt instruments with quoted prices from an active market.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

• 4) Transfer between Level 1 and Level 2

There were no transfers one level to another in 2025 and 2024.

(Continued)

32

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement.

The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss – equity investments”.

Most of the Group’s fair values are Level 3 “only with single significant unobservable inputs” , and only equity instruments without active market have plural significant unobservable inputs. Since significant unobservable inputs of equity instruments without an active market are independent, they are not correlated.

(y) Financial risk management

There were no significant changes in the Group' s financial risk management and policies as those disclosed in Note 6(y) of the consolidated financial statements for the year ended December 31, 2024.

(z) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2024. Please refer to note 6 (z) to the consolidated financial statements for the year ended December 31, 2024 for further details.

(aa) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities, which did not affect the current cash flow in the three months ended March 31, 2025 and 2024, were as follows:

(i) For acquisition of right-of-use assets through lease, please refer to note 6(g).

Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings (including due within 1 year) Short-term borrowings Lease liabilities Total liabilities from financing	January 1, 2025 $ 320,918 536,845 28,988 $ 886,751	Cash flows (93,338) - (2,149) (95,487)	Non-cash changes Acquistion Foreign exchange movement - 975 - 1,950 - - - 2,925	March 31, 2025
				228,555 538,795 26,839
				794,189

(Continued)

33

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

				Non-cash	changes
					Foreign
		January 1,			exchange	March 31,
		2023	Cash flows	Acquistion	movement	2024
Long-term borrowings
(including due within 1 year)	$	712,180	(120,127)	-	4,658	596,711
Short-term borrowings		560,703	100,000	-	2,440	663,143
Lease liabilities		26,186	(2,049)	3,517	-	27,654
Total liabilities from financing	$	1,299,069	(22,176)	3,517	7,098	1,287,508

(7) Related-party transactions

(a) Names and relationship with the Group

The followings is the entities that have had transactions with the Group during the periods covered in the consolidated financial statements.

in the consolidated financial statements.
Name of related party	Relationship with the Group
Fine Clear Co., Ltd	An associate

• (b) Significant transactions with related parties

• (i) Sales of goods to related parties

The amounts of significant sales by the Group to related parties were as follows:

Associates－Fine Clear Co., Ltd		For the three months ended March 31	For the three months ended March 31
			2024
			14,132

The price changed to related party is incomparable to normal price because there were no similar items sold to both related and non-related parties. The credit term was 150 days , while the credit term for routine sales transactions was ranged from 30 days to 120 days . Amounts receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

(ii) Receivables from related parties

	March 31,	March 31,	December	March 31,
Account	Related-party type	2025	31, 2024	2024
Notes receivable	Associates－Fine Clear Co., Ltd$	16,626	9,966	21,631
Accounts receivable	Associates－Fine Clear Co., Ltd$	1,243	5,239		3
(iii) Payables to related parties
		March 31,	December 31,	March 31,
Account	Related-party type	2025	2024	2024
Notes payable	Associates－Fine Clear Co., Ltd$	205	170	630
Other payables	Associates－Fine Clear Co., Ltd$	293	24		91
				(Continued)

34

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Share-based payments		For the three months ended March 31	For the three months ended March 31
			2024
			6,341 278 - - -
			6,619

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets Land Buildings	Object March 31, 2025 Guarantee for bank loans $ 308,676 Guarantee for bank loans 896,238 $ 1,204,914	December 31, 2024 296,916 905,842 1,202,758	March 31, 2024
			296,916 967,428
			1,264,344

(9) Significant commitments and contingencies:

(i) The Group's unrecognized contractual commitments were as follows:

March 31, 2025 Acquisition of property, plant and equipment $ 443,594	December 31, 2024 35,618	March 31, 2024
		16,697

(ii) The Group received civil complaint of trade price and notice trial which Yi-Zong Hardware Co., Ltd. claim that the Group should pay $37,084 thousands and $900 thousands for purchase. The complaint is on trial in Taiwan Taichung District Court and High Court, therefore, the Group does not expect material impact in the Group's operation and business.

(10) Losses due to major disasters:None

(11) Subsequent events:None

(Continued)

35

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Other:

• (a) A summary of employee benefits, depreciation, and amortization by function, is as follows:

	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
By function By item	2025			2024
	Operating Cost	Operating expenses	Total	Operating Cost	Operating expenses	Total
Employee benefits
Salary	72,683	67,193	139,876	104,466	77,392	181,858
Labor and health insurance	8,243	7,113	15,356	11,444	5,471	16,915
Pension	3,194	3,595	6,789	5,598	2,423	8,021
Others	1,603	1,001	2,604	2,403	773	3,176
Depreciation	51,265	20,264	71,529	72,278	10,808	83,086
Amortization	1,409	3,298	4,707	1,107	3,760	4,867

(b) Seasonlity of operation

The Group's operations were not affected by seasonality or cyclicanty factor.

(Continued)

36

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the three months ended March 31, 2025:

(i) Lending other parties:None

• (ii) Guarantees and endorsements for other parties:

(Amounts in Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and end orsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	REXON INDUSTRIAL CORP., LTD	Tongxiang Rexon	2	1,513,659	0 -	-	-	-	% -	1,513,659	Y	N	Y

Note1 ： The total amount and the limited amount of the guarantee provided by the company to any individual subsidiary shall not exceed forty percent (40%) of the Company’s net worth.

Note2 ： No.0 represents the parent company.

Note3 ： The relationship between guarantee provider and guarantee party were as follows :

• 1) Companies which were in business relationship.

• 2) Subsidiaries which the company directly or indirectly held more than fifty percent (50%).

• 3) Companies with substantial control.

• (iii) Securities held as of March 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

(Amounts in Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
REXON INDUSTRIAL CORP., LTD	Stock-Hwa Chung Venture Capital Corp	-	Financial assets at fair value though profit or loss-current	10	96	-	96

• (iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(Amounts in Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
REXON INDUSTRIAL CORP., LTD.	Tongxiang Rexon	The subsidiary	Purchase	121,394	16 %	90~150Days	(Note1)	(Note2)	(195,598)	24 %

Note1 ： The price charged to related party is incomparable to normal price because there were no similar iterms purchased from both related and non-related parties.

• Note2 ： The payment term for the related party is 90-150 days. Apart from according to the established payment policy, the related working capital, industry characteristics, and industrial prosperity are also considered.

(Continued)

37

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(Amounts in Thousands of New Taiwan Dollars)

Name of company	Name of Counter-party	Name of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Tongxiang Rexon	REXON INDUSTRIAL CORP., LTD.	Parent company	Account receivable 195,598	2.08 %	-	-	The recovery amount as of May 7, 2025 : 34,095	-

(vi) Business relationships and significant intercompany transactions:

(Amounts in Thousands of New Taiwan Dollars)

				(Amounts in Thousands of New Taiwan Dollars)	(Amounts in Thousands of New Taiwan Dollars)	(Amounts in Thousands of New Taiwan Dollars)	(Amounts in Thousands of New Taiwan Dollars)
No.	Name of company	Name of counter-party	Nature of relationship (Note2)	Intercompany transactions
				Account name	Amount	Tradingterms	Percentage of the consolidated net revenue or total assets
0	REXON INDUSTRIAL CORP., LTD.	Tongxiang Rexon	1	Purchases	121,394	The prices were agreed upon by the two parties to the transaction.	11.97 %
0	REXON INDUSTRIAL CORP., LTD.	Tongxiang Rexon	1	Account payable	195,598	The payment terms were agreed upon by the two parties to the transaction.	2.69 %
0	REXON INDUSTRIAL CORP., LTD.	Rexon Technology	1	Purchases	13,194	The prices were agreed upon by the two parties to the transaction.	1.30 %
0	REXON INDUSTRIAL CORP., LTD.	Rexon Technology	1	Account payable	13,079	The payment terms were agreed upon by the two parties to the transaction.	0.18 %
0	REXON INDUSTRIAL CORP., LTD.	P.T.S.	1	Service fee	9,872	The prices were agreed upon by the two parties to the transaction.	0.97 %
0	REXON INDUSTRIAL CORP., LTD.	P.T.S.	1	Other payable	132,179	The payment terms were agreed upon by the two parties to the transaction.	1.82 %

Note1 ： Representations of No. were as follows:

• 1) No.0 represents the parent company.

• 2) Subsidiaries were numbered in sequence from No.1.

Note2 ： Type of intra-group transactions were as follows:

• 1) represents the transactions form parent company to subsidiary.

• 2) represents the transactions from subsidiary to parent company.

• 3) represents the transactions between subsidiaries.

(b) Information on investees (excluding information on investees in Mainland China):

The following is the information on investees for the three months ended March 31, 2025 (excluding information on investees in Mainland China):

(Amounts in Thousands of New Taiwan Dollars)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of March 31, 2025	Balance as of March 31, 2025	Balance as of March 31, 2025	Net income (losses) of investee	Share of profits/losses of investee	Note
				March 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
REXON INDUSTRIAL CORP., LTD.	Fine Clear Co.,Ltd	R.O.C	Buying and selling accessories	14,197	14,197	1,600	% 16	16,320	95	15	Investment Using Equity Method
REXON INDUSTRIAL CORP., LTD.	Rexon Technology Corp., Ltd. (Rexon Tech)	R.O.C	Manufacture and sale of electric components	293,741	293,741	7,851	% 82.87	103,515	(4,948)	(4,101)	Direct subsidiaries of the Company
REXON INDUSTRIAL CORP., LTD.	Power Tool Specialists Inc.	U.S.A	Merchandise trading	196,465	196,465	0.1	% 96	173,604	(3,427)	(3,290)	Direct subsidiaries of the Company
REXON INDUSTRIAL CORP., LTD.	Gold Item Group Ltd.	British Virgin Islands	Investing and holding	747,858	747,858	US$25,000 (Note 1)	% 100	628,187	(16,513)	(16,513)	Direct subsidiaries of the Company
Gold Item	Gold Tech Group Ltd.	Hong Kong	Investing and holding	US$25,000	US$25,000	US$25,000 (Note 1)	% 100	607,512	(16,513)	(16,513)	Direct subsidiaries of Gold Item

Note1 ： Company Limited without issuing Shares. The amount of capital invested is disclosed.

(Continued)

38

REXON INDUSTRIAL CORP., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Information on investment in Mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(Amounts in Thousands of New Taiwan Dollars)

Investee company	Main businesses and products	Total amount ofpaid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of March 31, 2025	Net income (losses) of the investee	Percentage of ownership	Net income (losses) recognized	Carrying value as of March 31, 2025	Accumulated remittance of earnings as of March 31, 2025
					Outflow	Inflow
Tongxiang Rexon	Manufacture of drills, woodworking tools and fitness equipment	CNY154,465 (USD 25,000)	(Note 1)	USD 25,000 (NTD 745,565)	-	-	USD 25,000 (NTD 745,565)	(16,513)	100 %	(16,513)	607,512	-

Note 1 ： The Group invested companies in Mainland China through investees in Third Region, and investees in Third Region invested companies in Mainland China through their investees in Hong Kong.

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of March 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
US$ 25,000 (NT$745,565)	US$ 25,000 (NT$745,565)	2,270,488

• (iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(14) Segment information

The reportable information of segment's profit and assets is in accordance with the consolidated financial statements. Please refer to Consolidted Statements of Financial Position and Consolidated Statements of Comprehensive Income .

(Continued)