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.
With anti-corruption, anti-fraud, and strict discipline as its core value, Rexon Industrial has established the “Ethical Corporate Management Best Practice Principles” and “Code of Ethical Conduct.” The Company holds regular education and training for employees and stakeholders, requires them to sign self-discipline documents, and provides complaint channels. These efforts enhance the importance of complying with the anti-corruption policy, helps them fully understand the ethical management and anti-corruption policies of the Company and the possible consequences and risks of violating these policies.
Rexon Industrial monitors and audits corruption incidents through its internal control and internal audit systems. The Company identifies business activities with material corruption risks through risk assessment. The activities include violations of trade secrets, insider trading, embezzlement, theft of company properties, kickbacks, improper benefits, and other behaviors violating the code of ethics. To achieve effective control and implement the “Ethical Corporate Management Best Practice Principles” and “Code of Ethical Conduct,” operating departments conduct a self-assessment of internal control and legal compliance once a year. The internal audit then utilizes the self-assessment to ensure the continued effectiveness of the system design and execution, preventing unethical behavior.
Rexon Industrial has promoted business digitalization and utilized information technology to integrate six management functions, namely, human resources, finance, business, production, materials, and R&D, thereby enhancing transparency and internal control efficiency. The Chief Audit Office develops relevant audit plans based on the result of the risk assessment of dishonest behavior, including the target, scope, items, and frequency of the audit, and checks the compliance of the prevention plan accordingly. According to the audit plan approved by the Board of Directors, there were 53 audit items for 2024—including sales and collection, procurement and payment, production, payroll, financing, fixed assets, computer information, investment, and transaction cycles—to be assessed and audited as to their effectiveness and efficiency of operations, the reliability of the financial reports, and compliance with relevant laws and regulations. The actual audit results showed 14 findings and deficiencies, most of which were omissions in paperwork or incomplete data. There were no significant deficiencies. The deficiencies of the internal control and abnormal matters identified during the inspection have been incorporated into the audit report and subjected to future review. All the deficiencies have been rectified with an improvement completion rate of 100%.
According to statistics from the 2024 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.Senior managers, as well as middle and front-line supervisors at Rexon's operational sites, completed a total of 13.25 hours of corporate governance and integrity-related promotional videos and digital teaching materials in 2024. Through the internal education and training platform of Rexon Academy, they gained a comprehensive understanding of the company's commitment, policies, preventive measures, and the consequences of dishonest behavior. General employees were informed through bulletin board announcements.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 2024 was 100%, involving a total of 688 individuals.
