CORPORATE SUSTAINABILITY

Actual positive:

1. Seize business opportunities arising from sustainable product trends by establishing a low-carbon materials database and conducting sampling and testing, while regularly promoting such materials to customers to increase sales opportunities and enhance operating performance.
2. In response to geopolitical risks, continue to expand and diversify production bases to reduce operational risks and improve operational performance.

Actual negative impacts:

1. In the face of carbon tax policies in the U.S. and the E.U., insufficient knowledge of low-carbon materials may lead to higher OEM costs, thereby undermining operational competitiveness.
2. Under uncertainties brought about by geopolitical tension, failing to develop response strategies and adapt to trend changes in a timely manner may result in missed business opportunities and have negative impacts on competitiveness.

Actual positive:
The dual focus on technology and sustainability innovation strengthens intellectual assets and brand value.

Potential negative:
Stagnation in innovation may result in a decline in market share and operating revenue.

Actual positive:

1. Innovative and sustainable product development helps customers maintain their competitive advantages in the market.
2. A comprehensive customer relationship management (CRM) system helps build closer customer relationships, improve service quality, and enhance customer satisfaction.
3. A sound mechanism for protecting customers’ business secrets strengthens customers’ trust in the Company and helps deepen long-term partnerships.

Potential negative:

1. Products that fail to keep pace with trends or enhance added value may easily lose customers’ trust.
2. The absence of a comprehensive customer relationship management (CRM) system may lead to errors or the loss of customer information, thereby affecting customer relationship maintenance and service quality, and resulting in missed potential business and cooperation opportunities.
3. Establish a comprehensive mechanism for protecting customers’ trade secrets, and properly manage customer contracts, product drawings, and information on dedicated production lines (designated areas), thereby reducing the risk of information leakage, strengthening customers’ trust in the Company, and helping deepen long-term cooperative relationships.

Actual positive:

1. Promoting product health and safety strengthens stakeholder trust and attracts more customers and investors.
2. Demonstrating the Company’s commitment to health and safety helps employees feel valued, improving productivity and reducing turnover.
3. Compliance with health and safety standards reduces the risk of incidents and lowers potential legal liabilities and financial losses.

Potential negative:

1. Products containing hazardous substances or defects may pose direct threats to consumer health.
2. Failure to comply with product health and safety regulations may expose the Company to legal and financial risks.

Actual positive:
Promotes shared growth across the supply chain, reduces waste, optimizes resource use, lowers operating costs, and improves efficiency. Helps strengthen cost competitiveness and overall operational performance, thereby enhancing corporate resilience, risk management, and response capabilities while reducing operational risks and improving the Company’s ability to respond to external shocks.

Potential negative:
If the supply chain lacks sustainable management, it may lead to poor management, environmental violations, labor disputes, or regulatory non-compliance. These issues can damage corporate reputation and compromise delivery stability, leading to loss of orders and risk of business disruption.

Actual positive :

1. Integrity is the core value of the Company’s operations. The Company has established comprehensive ethical corporate management best practice principles and an internal audit system to ensure that all business activities comply with the laws, regulations, and ethical standards.
2. During the reporting period, the Company maintained sound corporate governance performance, with no material corruption, misconduct, or legal proceedings, fines, or sanctions arising from violations of ethical principles, demonstrating the Company’s determination to continuously implement ethical corporate management and transparent management.
3. Through institutionalized risk control mechanisms and employee education and training, the Company not only strengthens internal controls, but also continues to enhance the trust and reputation of external stakeholders in the enterprise, laying a solid foundation for sustainable operations.

Potential negative :

1. Once an integrity-related incident occurs, regardless of its severity, it may seriously damage the Company’s image and customer trust.
2. Any corruption or fraudulent conduct would result in misallocation of resources and improper transfer of benefits, weaken the fairness of decision-making and operational efficiency, and in turn affect the Company’s competitiveness and innovation momentum.

Actual positive:

1. Passing the ISO 27001 audit each year strengthens information security protection, ensures operational continuity, protects customer data and trade secrets, and enhances the Company’s reputation and market competitiveness.
2. Compliance with regulatory requirements (such as the Personal Data Protection Act and the Cyber Security Management Act) reduces the risk of legal or regulatory penalties and attracts customers and investors who value information security governance.

Potential negative:
Insufficient information security awareness among personnel or gaps in technical capabilities may increase potential risks related to the Company’s operating costs and management.

Actual positive:

1. The Company continues to promote occupational health and safety education and training, internal audits, inspections, and improvement programs while implementing risk identification and control measures to effectively reduce the risks of operational incidents and occupational incidents.
2. The Company promotes employee health and a sense of safety, improves job satisfaction and production efficiency, and further strengthens organizational resilience and stability.
3. Through contractor management, safety reviews, and change management processes, the Company enhances the safety awareness of internal and external partners and ensures that all construction and operating activities comply with the same safety standards.
4. A comprehensive occupational health and safety management system helps strengthen risk identification and control capabilities and protects the safety and health of all workers.

Actual negative
The persistently high disabling injury frequency rate (FR) in high-risk operating units has affected the Company’s overall occupational health and safety performance and increased operational risks.

Potential negative :

1. If contractors fail to properly implement hazard communication, construction discipline, and on-site safety measures, occupational safety incidents may occur, potentially causing injuries or affecting operations.
2. If procurement or change management processes do not incorporate safety reviews, the introduction of new equipment, construction methods, or operating processes may create potential hazards and increase operational risks.

Actual positive:

1. We increase the proportion of green energy usage, reduce carbon footprint, promote energy self-sufficiency, improve corporate energy efficiency, reduce electricity consumption, and reduce carbon emissions. These initiatives support our commitment to ESG (environmental, social, and governance) sustainability and contribute to global environmental protection and sustainable use of resources.
2. When actively implementing carbon reduction measures, the Company can directly reduce the carbon footprint of products, but needs to make capital investment accordingly.

Actual negative impacts:
In 2025, the total greenhouse gas emissions of Rexon amounted to 48,107.089 metric tons of CO₂e per year, contributing to climate change and impacting the local community's environment.

Potential negative:
Rexon cannot effectively reduce electricity consumption, carbon emissions, and environmental impacts, without increasing the use of green energy in the factory area and adopting smart power consumption solutions.

Actual positive:

1. The Company follows international standards such as the Universal Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights, and the International Labour Conventions. It implements the principles of respect and equality and ensures that all employees are treated fairly at every stage, including recruitment, appointment, training, performance evaluation, and promotion.
2. Through the promotion of diversity and inclusion, gender equality, anti-discrimination education and training, workplace harassment prevention, and employee care programs, the Company is committed to creating a safe and friendly workplace, strengthening employees’ sense of belonging, organizational cohesion, and overall workplace resilience.

Actual negative:
The Company currently entrusts the recruitment of foreign migrant workers to recruitment agencies, and certain fees are still borne by migrant workers themselves. As a result, the current practice has not yet fully met the highest standard of “zero recruitment fees for migrant workers” required by certain international customers or social responsibility audits, such as RBA.

Potential negative:
The Company has not yet obtained external verification related to international human rights standards, which may limit its ability to effectively integrate human rights-related risks and opportunities.