The management team at Rexon upholds the corporate culture of "honesty, stability, and growth." Through comprehensive lean management and technological innovation, we strive to differentiate ourselves and maintain a competitive edge. We aim to meet customer needs, foster win-win partnerships, and pursue high-quality growth and sustainable operations for the company.
Rexon Industrial operates under a governance structure with the Board of Directors as the highest governing body, chaired by Chairman Wang Kuan-Hsiang. The Audit Committee, Compensation Committee, and Sustainability Committee are established under the Board of Directors to provide assistance in the fulfillment of the supervision responsibility. To ensure clarity of organizational structure and the independence of operations, the Chairman does not concurrently hold an executive position within the company. In 2017, the Board of Directors approved the “Corporate Social Responsibility Practices Code” to govern corporate social responsibility policies, systems, management principles, and communication and disclosure of information to stakeholders.
Rexon's main sources of revenue are power tools and fitness equipment. The company's market competitive advantage lies in integrating the company's strategy map and the Excellent Operations Performance (XOP) model. By implementing strategic initiatives derived from the four perspectives of the Balanced Scorecard, these initiatives are set as annual goals for the company. Each department then quantifies action plans into Key Performance Indicators (KPIs). Monthly performance reviews are conducted based on the actual achievement rates of each department, with a focus on analyzing and improving indicators that fall behind. Throughout the execution process, the company strives to meet the expectations of all stakeholders in order to achieve excellence in the seven systems of the XOP model.
In 2023, the operating revenue was NT$6,708,461 thousand, which increased by NT$2,159,153 thousand compared to the revenue of NT$4,549,308 thousand in 2022, a 47.46% increase from last year. The consolidated net profit after tax in 2023 was NT$311,039 thousand and the earnings per share after tax was about NT$1.70.
The factors such as war, geopolitics, stagflation, unceasing increase of the interest rate and loosening of the lockdown restrictions in 2023 resulted in weak demand, high stock quantity and significantly decreased customer demand. In spite of the adverse business environment, we operated prudently and steadily and persisted in the core value of our fundamental business by manifesting our competitive advantages and operating our business firmly in this wave of economic changes.
Type
Item
2023
Type ＼ Item
Generated Direct Economic Value2023
Operating revenue
6,708,461
Non-operating RevenueNote:1
31,502
Type ＼ Item
Distributed Economic Value2023
Operating CostsNote:2
5,031,721
Employee Salaries and Benefits
688,911
Payments to Capital Providers
217,768
Community Investments
243
Type ＼ Item
Retained Economic Value2023
Retain Economic Value
801,320
Note 1: Non-operating revenue includes interest income, dividend income, and rental income;
Note 2: Operating costs include rental expenses, commission expenses, labor costs, and education and training expenses.
Vision
Inherit the attitude to go beyond excellence / Provide comprehensive services to our brand customers / by leveraging advanced electromechanical integration technologies
Mission
Uphold the philosophy of getting to the bottom of matters
and continual improvement to
achieve lean manufacturing and management
Provide premium products and services to
our brand customers with
our leading electromechanical technique
Create the best benefit for
related parties with sustainable
operations as the goal
2024Strategy Map
Financial Aspect
Customer Aspect
Process Aspect
Organizational Learning Aspect
Since the foundation in 1972, Rexon has been dedicated to providing high-quality products and premium services and attaching importance to customer privacy. We are committed to being a trustworthy and reliable partner of our customers.
We have constantly made effort for excellence and created robust customer relationship throughout this half-century history.
(1) High product quality: Make improvement and enhance service level continuously.
(2) Premium service: Customers and the Company communicate and interact with each other not only in the sales process, but also during the after-sale service of the product. We understand the needs and opinions of the customers through close cooperation and a feedback mechanism to make adjustment in a time manner, improve our products and services, and establish more far-reaching partnership.
(3) Customer privacy: To protect the privacy of customer information, the internal audit unit of the Company has prepared an annual audit implementation plan for potential risk items, conducted regular risk assessments, and established and implemented an internal control system. Hence, no customer complaints about infringement upon customer privacy or loss of customer data occurred in the statistics as of 2023.
Material Issues
Customer relationship management
Material Issues
Description of positive benefits
Customer relationship management
To meet the environmental need for net zero carbon emissions, in addition to presenting innovative product concepts and proposals to customers for evaluation and adjusting their product lines accordingly, Rexon focuses on enhancing the added value of its products through discussions on product features and specifications, pricing, market channels and promotion, profitability, and other aspects. This aims to assist customers in improving their competitiveness.
Material Issues
Description of negative benefits
Customer relationship management
E：Customer's products do not keep up with the international trend and thus lose the market and competitiveness.
S：Improper quality management causes customer complaints and churns, resulting in a declining reputation of the Company.
G：Since the pandemic is mitigated, the market demand for woodworking machines/home fitness devices decreases, and since most of the woodworking machine/home fitness device customers are facing the problem of overstocks, the sales volume is not as good as expected and the orders of the factories are reduced relatively.
Material Issues
Remedial mechanisms / measures
Customer relationship management
Material Issues
Complaint / communication channels
Customer relationship management
The official website or the contact information of the sales representative can be used to address any doubts about products. We will keep this confidential.
Service Email：sales@rexon.com.tw
Contact：Customer Service Department
Material Issues
Policy / commitment
Customer relationship management
Keep communication channels smooth (periodical online meetings), in-depth understanding of customer's needs (periodical visits).Plan monthly/quarterly customer visits and product innovation meetings according to different needs of customers.
Material Issues
Objective
Customer relationship management
Establish a good collaboration relationship to improve the quality and efficiency of customer services.
Material Issues
Responsibility
Customer relationship management
The dedicated person of the Sales Department collects customer opinions and assigns a dedicated employee to handle them as soon as possible.
2023 goals
Achievement status of 2023 goals
Short-term Goals（2023~2024）
Medium-term and Long-term Goals（2025~2030）
2023 goals
Conduct the "Customer Satisfaction Assessment" for key customers every year; customer satisfaction all scored over 80 points.
Achievement status of 2023 goals
Customer satisfaction for electric tools and fitness equipment scored 81.5 and 83.5 respectively.
Short-term Goals（2023~2024）
Customer satisfaction are all scored over 82 points
Medium-term and Long-term Goals（2025~2030）
Customer satisfaction are all scored over 84 points
Material Issues
Customer relationship management
Material Issues
Specific actionsin 2023
Customer relationship management
Material Issues
Management Measurement Mechanism
Customer relationship management
Material Issues
Results
Customer relationship management
Material Issues
Adjustment of Management Policies
Customer relationship management
Material Issues
Stakeholder Engagement
Customer relationship management
Corporate sustainability report (annual), carbon inventory report (annual), customer satisfaction survey (annual), customer visits (annual), periodical meetings
MANAGEMENT
Risk management is an integral part of modern business operations. Companies face different risks in a business environment full of uncertainties, including strategic risks, operational risks, financial risks, and compliance risks. These may cause significant losses to corporate assets, profitability, competitiveness, and image. Risk management can help companies address these challenges, protect their assets, increase their profitability, enhance competitiveness, and improve corporate image. Therefore, Rexon places much importance on risk management and implements it in daily operations. We have established a sound risk management system, conducted regular risk assessment and update, and established measures to cope with different risks.
We are facing emerging risks in the global market in recent years, including geopolitical risks (Ukraine-Russian war/Israel-Palestinian conflict), inflation risks, economic recession risks, climate change risks, financial market risks, and energy security risks. The changes brought about by the geopolitical tension and the climate change are closely related to the business and development of the Company. For this, we take the following response actions and measures and incorporate them in the scope of our risk management:
Emerging risk
External environment
Risk and crisis
Countermeasures and strategies
Emerging risk
Geopolitical tension
Geopolitical tension
Risk and crisis
Countermeasures and strategies
Emerging risk
Climate change crisis
Climate change crisis
Risk and crisis
Countermeasures and strategies
Hence, the Company has established relevant risk management procedures in accordance with the “Internal Control Self-Evaluation Regulations” and “Internal Control System”. We also have established comprehensive forward-looking risk strategies in consideration of the risks deriving from different possibilities such as global economic prosperity, market operations, human resources, innovation/technological transformation, product quality, and climate change. The management leads all employees from top to bottom to participate in the implementation to improve the effectiveness of the risk management.
Commander
President
Communication System
Spokesperson
Risk Management Team
Convener
Each unit
Supervisor
Company
All Employees
When establishing risk management operations, we connect them with the risk factors, such as external environment, and take the nine major operational cycles as the basis of the implementation. The Company checks all the risk factors in each cycle, set monitoring indicators, and develop response measures to reduce the probability of risk occurrence and the resultant operational impact.
These nine cycles include research and development procurement and payment, production, sales and collection, information system, fixed assets, financing, investment, and payroll, fully covering the daily operations of the Company.
In addition, we list the risk items that need to be controlled by checking these nine cycles, report the monitoring indicators on a regular basis, and establish response measures for these risks The Company eliminates or reduces the threats and losses brought about by the risk through accountability, dynamic adjustment, employee training, and other activities.
Process Diagram
Relevant Departments
Measures
Risk Indicator Setting
Various Units & Managers
Risk Monitoring
Various Units & Managers/Internal Audit Departments
Risk Assessment
Various Units & Managers/Risk Management Team
Risk Response
Various Units & Managers/Risk Management Team
Preventive Mechanisms
Risk Management Team
After effective control of risk management, the preventive mechanisms will be updated in the risk management form, serving as a knowledge base and a reference for setting future risk control indicators.
In the event of major risks, the President appoints a manager as the convener of the Risk Management Team to convene an emergency response meeting, conduct risk assessment, establish a response plan, and implement handing measures in a timely manner to ensure that the Company can cope with crises and minimize the impact.
Major Risks
The General Manager assumes the role of Chief Commander for emergency response
and makes decisions based on the situation.
1. In the event of general abnormalities that unit supervisors cannot handle, they may be escalated as major risks.
2. Definition of major risks
• Major work-related accidents and incidents
• Significant events that impact the company's operations
• Events that have an impact on the company's image
Commander, General Manager
Communication System
Unified external communication window
Risk Management Team Convener
Convene meetings to discuss countermeasures
Unit supervisors
General risks
Financing cycle
Investment cycle
Research and development cycle
Procurement payment cycle
Production cycle
Sales collection cycle
Fixed asset cycle
Payroll cycle
Information system cycle
※ According to the definition of the nine major cycles in internal control, each unit is responsible for risk monitoring and indicator management. If any indicators exceed the specified limits, unit supervisors are required to review and implement appropriate measures.
AND ETHICS
Rexon Industrial upholds the business philosophy of Integrity, stability, and Growth and demonstrates our attitude toward ethical management on the official website of the Company. We have established the "Ethical Corporate Management Best Practice Principles" and "Code of Ethical Conduct" to establish a corporate culture of ethical management and good business operations. The Corporate Governance unit is responsible for establishment, supervision and implementation of the ethical corporate management policies and preventive plans, and preclinical organization of education and training for employees and stakeholders, arranging them to sign self-discipline documents, and providing complaint channels. This way, we enhance the importance of complying with the anti-corruption policy, help them fully understand the ethical management and anti-corruption policies of the Company and the possible consequences and risks of violating these policies.
According to the audit plan approved by the Board of Directors, there were 55 audit items for 2023, including sales and collection, procurement and payment, production, payroll, financing, fixed assets, computer information, investment, and transaction cycles, for assessment and audit of the effectiveness and efficiency of operations, the reliability of the financial reports, and the compliance with relevant laws and regulations. The actual audit results did not show significant deficiencies. The deficiencies of the internal control and abnormal matters identification during the inspection have been incorporated in the audit report and subjected to follow-up periodically. All the deficiencies have been rectified with an improvement completion rate of 100%.
According to statistics from the 2023 audit reports of Rexon Industrial, there were no employees dismissed or disciplined due to corrupt practices, and no incidents of termination or non-renewal of contracts with business partners due to violations of integrity or ethical conduct occurred.
The coverage rate of training and promotion on corporate governance, integrity, and ethical behavior involving senior managers, mid-level and front-line supervisors, and employees in Rexon Industrial's operational sites in 2023 was 100%, involving a total of 818 individuals.
Region
Number of Employees Familiar with the Company's
Anti-Corruption Policy and Procedures
Number of employees
Percentage
Method
Region
Senior Executives
Number of Employees Familiar with the Company's
Anti-Corruption Policy and Procedures
18
Number of employees
18
Percentage
100%
Method
Through the internal education and training platform of Rexon Academy
Region
Middle Managers
Number of Employees Familiar with the Company's
Anti-Corruption Policy and Procedures
29
Number of employees
29
Percentage
100%
Method
Through the internal education and training platform of Rexon Academy
Region
Front-line Supervisors
Number of Employees Familiar with the Company's
Anti-Corruption Policy and Procedures
60
Number of employees
60
Percentage
100%
Method
Through the internal education and training platform of Rexon Academy
Region
General Employees
Number of Employees Familiar with the Company's
Anti-Corruption Policy and Procedures
67
644
Number of employees
711
Percentage
100%
Method
Through the internal education and training platform of Rexon Academy
Notice Board Announcements and Promotion
The Company upholds the "Ethical Corporate Management Best Practice Principles", reviews and modifies relevant policies and measures on a regular basis, and encourages employees to make suggestions to improve the effectiveness of the ethical corporate management. In addition, we have established a "whistleblowing system" to protect the rights of the whistleblower and ensure that no whistleblowers are treated improperly due to whistleblowing. Based on the business philosophy of integrity, transparency, and accountability, Rexon enhances the corporate culture and sustainable development, establishes the "Ethical Corporate Management Best Practice Principles" in accordance with the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies" and relevant laws and regulations, and implements two education and training programs: The "Ethical Corporate Management" is applicable to the supervisors at or above the level of managers and assistant managers (48 supervisors). The pass rate is 100%. The "Commercial Anti-Corruption" is applicable to procurement personnel (126 staff members). The pass rate is 100%.
Whistleblowing Channels for Reporting and Complaints:
Related Perspectives
Complaint Channels
Investigation Process
Related Perspectives
Professional Ethics and Integrity
Complaint Channels
Email: audit@rexon.com.tw
Address: No. 261, Renhua Rd., Dali Dist., Taichung City
Responsible Department: Audit Office
Investigation Process
Related Perspectives
Corruption and Bribery
Complaint Channels
Phone: 04-24914141#6211
Email: GSCM@rexon.com.tw
Responsible Department: Procurement Department
Investigation Process
Related Perspectives
Product and Services
Complaint Channels
Phone: 04-24914141
Email: sales@rexon.com.tw
Responsible Department: Customer Service Department
Investigation Process
Related Perspectives
Human Rights-related Issues
Complaint Channels
Phone: 04-24914141#6181
Anonymous QR Code Whisper Zone
Responsible Department: Human Resources Department
Investigation Process
Notes:
1. No complaints or violations with respect to the aforementioned four aspects occurred to the Company in 2023.
2. Definition of "Serious Violation": Cases involving amounts exceeding NT$1 million.
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