Sustainable Products - Corporate Sustainability | REXON INDUSTRIAL CORP., LTD | Specializing in the development of power tools | Fitness equipment

Product Field

As for innovation and research and development, the headquarters in Taiwan is the R&D center of Rexon. We integrate the R&D resources in China and the feedback from the subsidiary in the USA to develop the products that can best meet the needs of the customers/consumers. The Company constantly enhances the internal momentum of innovation. In addition to organizing activities for innovative proposals and actively investing in the development of sustainable products, we are dedicated to the R&D and application of energy-saving and low-carbon products to improve product competitiveness and market sales.

LAWN AND GARDEN TOOLS

Power tools _

In the power tool market, in addition to continuously expanding high-priced and high-quality products, durable and portable products have also become another mainstream trend. As a result, the wireless charging product category has seen significant growth in recent years, with major brands also establishing their presence in this product line, making it a major source of revenue and profitability. To adapt to market changes, Rexon has engaged in collaborative development of wireless charging products with renowned brand partners and produced desktop power tools of high quality. Our high-quality products have received numerous recognitions and awards from customers as the best supplier in the industry. We launched a series of handheld electric garden tools in 2023 to meet the market demand for efficient and environment-friendly outdoor power equipment.

Benchtop power tools

Portable power tools

FITNESS EQUIPMENT

Fitness equipment _

In recent years, the commercial fitness equipment market has expanded due to the rising health consciousness and fitness trend. Leading local brands in Europe and America, the largest consumer markets globally, have sought contract manufacturers in the Far East to improve their market share. As a result, the export of fitness equipment from Taiwan and mainland China to Europe and America is expected to significantly increase in the future. Rexon is currently collaborating with the top five global commercial fitness equipment brands and the largest start-up client. The company is actively expanding its existing orders year by year, while continuously accumulating research and development capabilities and production technology to meet the demands of this growing market.

Spin Bike

Tread Mill

Recumbent Bike

Upright Bike

Elliptical

Stepmill

Important uses: Enhance physical health, medical treatment, physical rehabilitation, weight loss and muscle training, cardiorespiratory function and enhance physical fitness.

In-house manufacturing by Rexon

Outsourced procurement by Rexon

R & D MANUFACTURING

Research and Development / Manufacturing (Material Topic) _

Rexon continuously innovates its power tool products, providing products that surpass customer demands. Through brand and retail store strategic alliances and the utilization of production sites, Rexon achieves product diversification. Since 1986, Rexon has been dedicated to developing high-performance motor and driver applications, investing in assembly production lines and automated winding equipment. In recent years, Rexon has gradually introduced BLDC (Brushless DC Motor) motors into newly developed product categories such as power tools, e-bikes, lawn and garden tools, E-Cargo electric assisted bikes, and more (as shown in the diagram). By utilizing the high efficiency of BLDC motors, products can make more effective use of energy, resulting in savings and reducing unnecessary energy waste.

Material Issues

Research and Development (R&D) and innovation

Material Issues

Description of positive benefits

Research and Development (R&D) and innovation

Technological innovation and acquisition of patents: Improve market competitiveness, and increase the value of the intellectual assets through continuous innovation and application for patents
Green innovation and environmental sustainability: Promote low-carbon processes and renewable energy investment, improve the environmental image, and attract environmental-conscious consumers.
Talent cultivation and knowledge improvement: Enhance the ability of the employees, promote innovative thinking, and improve the quality of products and services.

Material Issues

Description of negative benefits

Research and Development (R&D) and innovation

Insufficient technological innovation resulting in declining market competitiveness: If R&D and innovation are not active enough, the technology of the Company may lag behind the competitors and this may affect the market share and profitability.
Decrease in revenue and market share: Insufficient innovation may lead to loss of attraction of products and services in the market and reduction of orders and revenue.
Brain drain and declining innovation ability: Brain drain may occur if the professional skills and innovative abilities of the R&D personnel are not improved effectively, and this may affect the long-term innovation abilities and competitive advantages of the Company.

Material Issues

Remedial mechanisms / measures

Research and Development (R&D) and innovation

When actual negative impact on innovation and research and development occurs, Rexon follows the risk and opportunity management regulations and the responsible manager launches the routine abnormality management for the ordinary risks that exceed the monitoring level. When a significant risk occurs, the risk management team holds a meeting to develop solutions.
Note: Definition of major risk 1. Major work-related accidents and incidents; 2. Significant events that impact the company's operations; 3. Events that have an impact on the company's image

Material Issues

Complaint / communication channels

Research and Development (R&D) and innovation

Rexon Industrial has established corresponding complaint and communication channels. Internal employees can report problems related to innovation and R&D through improvement proposals. In addition, Rexon Industrial discusses and implements these proposals through the ICC held periodically every year. This practice is not only helpful for solving problems in a timely manner, but also facilitates employee engagement and establishment of an innovation culture.

Material Issues

Responsibility

Research and Development (R&D) and innovation

Rexon has established the cross-departmental Innovation Management Committee for formulating and supervising innovation strategies and ensuring the consistence of the Company’s innovation activities with the overall business objectives of the Company. The R&D department is responsible for daily research and development work, mainly including development of new products as well as technological innovation and improvement. It is the core of the innovation activities.

2023 goals

2023 Achievement Status of the Goals

Short-term Goals（2023~2024）

Medium-term and Long-term Goals（2025~2030）

2023 goals

Monthly Submission of Trend Business Opportunities (e.g., Green Energy, Carbon Reduction): 1 proposal per month.
Innovation (including product and technology): At least two innovative proposals per month.

2023 Achievement Status of the Goals

Technical Division 2 KPI, ESG low-Carbon product design proposal: 12/year (achieved)
Innovative Product Committee: 24 innovative proposals/year (achieved)

Short-term Goals（2023~2024）

Proposals of innovative products planned to meet customer’s needs: 12/year
One new developable industrial commodity as determined every quarter and transferred in the development project

Medium-term and Long-term Goals（2025~2030）

The revenue goal of sustainable products achieved
Acquisition of ten international grant design awards
Continuously promote green energy products, develop cross-industry collaborations. Implement thorough supply chain management to ensure zero defects in quality.

Material Issues

Research and Development (R&D) and innovation

Material Issues

Specific actionsin 2023

Research and Development (R&D) and innovation

One model proposal per month for its deficiencies.
ESG low-carbon product design proposal.
New product development days/cost achievement rate at each stage.

Material Issues

Results

Research and Development (R&D) and innovation

Technical Division 2 KPI, ESG low-Carbon product design proposal: 12 proposals
Technical Division 2 KPI, One model proposal per month for its deficiencies: 48 proposals
Innovative Product Committee: 24 planned innovative proposals and 38 actually submitted proposals

Green Products

In recent years, Rexon has been actively developing BLDC motor drivers, providing products with excellent efficiency and reliable quality to help customers stand out in the market competition. Currently, Rexon has developed three models of BLDC motors and drivers as shown in the diagram, which are applied in the MITER SAW, TABLE SAW, and drilling machine respectively. These BLDC motor drivers contribute to the green product initiative by improving energy efficiency and reducing environmental impact.

Outreach to Green Gardening Tools:

We are dedicated to providing innovative and environment-friendly solutions for modern garden care. We launched a series of handheld electric gardening tools in 2023, including lawnmowers, leaf blowers and hedge trimmers. All of these are designed to meet the market demand for efficient and eco-friendly gardening tools. The electrical design of these tools not only improves work efficiency, but also reduces the noise and exhaust emissions significantly and thus produces a positive impact on the environment. Compared with traditional gasoline-powered tools, Rexon handheld electric lawnmowers significantly reduce energy consumption and carbon footprint. In comparison with traditional gasoline-powered lawnmowers, carbon emissions per hour can be reduced from 15.822 kgCO2 Note 1 to 0.594 kgCO2 Note 2. This is more compliant with the concept of sustainable development and can ensure the maximum utilization of energy. Electric leaf blowers can effectively remove fallen leaves and other garden waste while maintaining low energy consumption. Electric hedge trimmers are ideal trimming tools that make garden maintenance easier and more efficient. With these products, Rexon Industrial not only makes a technological breakthrough in the gardening tool field, but also demonstrates our firm commitment to environmental protection and sustainable development. We believe that we can provide more premium products for customers and make a contribution to the protection of the earth through continuous innovation and investment in environmental technologies.

Note 1: The data on carbon emissions per hour of traditional gasoline-powered lawnmowers come from The Grasshopper Company.

Note 2: Calculation of carbon emissions from Rexon lawn mowers: The measured energy consumption for a full operation of one hour is 1.2 kW; the emission coefficient per 1,000 kWh announced by the Bureau of Energy in 2022 is 0.495.

FEATURES

Three-phase output
Adjustable speed
Current limiting and circuit breaker protection
Open/closed loop mode
Configurable indicator output
High efficiency
Low electromagnetic interference
Modular installation capability

Customizable motor casing and mechanism

Outreach to Development of Green Products, Electric Assisted Bikes and Motors in 2023:

With the rapid development of the technology, Rexon is dedicated to constantly exploring and applying the most advanced technologies to meet the changing market demand. In this digital transformation era, we understand very clearly that innovation and diversification are the keys to success. Therefore, we have actively expanded our business areas and launched a series of high-tech products in response to the changing challenges. The components such as the E-cargo electric assisted bikes, mid-mounted motors, and walking motor assemblies for grass protection robots represent our commitment and innovation to environmental protection, smart logistics, and garden tools. We are dedicated to providing a total solution and promote green development of green technologies and smart applications. These efforts not only lay a solid foundation for the development of the Company, but also bring a life style of more environmental friendliness and higher efficiency, and thus facilitate the sustainable development of the industry. We expect that these innovative products can create more possibilities for the future. We will continue to lead the trend of the technology and provide customers around the world with better product experiences.

Mid-mounted Motor for Electric Assisted Bikes:

The e-bike market in 2018 showed a steady annual growth of more than 10%. As the pandemic was mitigated, the people in Europe and the United States embraced outdoor recreational sports again in the second half of 2021. This and the raised awareness of environmental protection, the demand for E-bikes skyrocketed in these regions. To keep up with this trend, Rexon has expanded the E-bike business since 2021 and fully applied the existing BLDC motor and structure development technologies. We work with customers to develop the battery, motor and electric control system for the mid-mounted E-bike motor. The mass production is expected to start in 2024.

Motors for Grass Protection Robots:

Grass protection robot: As a pioneer in effectively meeting the needs for turf maintenance manpower in the future, Rexon works with the companies from different industries to expand the product line of our gardening tools and engage in the development of more gardening products. This collaboration not only brings Rexon new market opportunities, but also effectively improves the motor torque and rotational speed to meet customer needs. The trial mass production of the walking motors for grass protection robots was conducted in January 2023, and the mass production commenced in September of the same year after careful calibration and testing. The launch of this robot walking motor assembly represents the continuous innovation of Rexon in the field of garden tools in the hope to provide more efficient and reliable solutions for the market.

Electric Assisted Bike E-Cargo:

E-cargo Bikes are the ideal solution for green transportation on the last mile. They can effectively mitigate traffic jams in the city and improve traffic flow by providing a light-duty, green transportation alternative. This green transportation especially plays a key role in the urban environment and can solve the traffic problem on the last mile. Compared to traditional transportation, the E-Cargo Bike uses an electric motor that can reduce carbon emissions significantly and has a positive impact on the air quality of the city. This technological innovation not only provides the residents in the city with a more environment-friendly transportation option, but also plays an important role in the assurance of sustainable urban development. Through the application of E-Cargo Bike, we hope to jointly build a cleaner and more livable urban environment and lay a foundation for the green mobility in the future. The mass production of the E-Cargo Bike is expectedly to start in 2024.

Extension to UAV motors in 2023:

With the prosperous development of the commercial drone market and the multiple applications of drones in transportation/agriculture, Rexon moves to the development of small motors based on our long-term motor development and manufacturing technology. We started the research and development of commercial drone motors in June 2023 to provide the market with a reliable solution. The trial mass production was conducted in April 2024 to provide customers with different product applications. This also gives us a new business opportunity.

PATENT FIELD AND DISTRIBUTION

Patent Fields and Distribution _

Rexon Industrial recognizes that innovation is the driving force behind business growth, and patents are crucial to its research and development endeavors. The company firmly believes that the fruits of collaborative efforts between internal employees and customers should be protected by intellectual property rights. These patents safeguard the valuable innovations created through joint development.

USA

USA /

Taiwan

Taiwan /

China

China /

Scroll

Number of Patents in Taiwan

Number of Patents in China

Number of Patents in the United States

Number of Patents in other countries

( EU:4, PCT:2, Mexico:1, Thailand:1)

Number of Patents

We have accumulated 650 patents, out of which 158 are currently active and applicable to our products. We continue to increase the number of active patents each year. Additionally, we have implemented the EPS patent management system to protect and develop our intellectual property rights, enabling us to provide unique products and services to our customers.

Patent Count Statistics – Patent Classification

Type	Number
Fitness Equipment	46
Power Tools	92
Outdoor Power Equipment	7
E-mobility	9
Powertrain	4
Total	158

Percentage of National Patent Counts

Percentage of Patent Classifications

Supply Chain Collaboration (Major Topic)

In line with Rexon's "co-prosperity" philosophy, the company incorporates ESG practices into its collaboration with suppliers, aiming to reduce the negative impact of business activities on the environment and society.

SUPPLIER CONTINUITY

MANAGEMENT

Sustainable Supplier Management _

We uphold the entrepreneurial spirit of Integrity, Stability, and Growth. As for the internal aspect, including responsible business conduct, we irregularly arrange education and promote the importance of the professional ethics and behavior at morning meetings, and establish the "Code of Ethical Conduct" specifying the prohibition of corruption and bribery, interest avoidance, information confidentiality, and so on for procurement personnel to follow. Externally, in addition to promoting ESG initiatives and sustainable operations to suppliers at the supplier meeting held twice a year, we have established the "Supplier Code of Conduct" and published it on the supplier e-platform for external communication with the suppliers and urging them to affix their signature. 17% of suppliers have signed the Code as of the end of 2023; the top 60% of the suppliers in the transaction amount are expected to sign the Code in 2024. We will jointly make an effort to achieve a sustainable supply chain by integrating internal and external understanding and the support of Rexon's social and business responsibility policies and norms.

Material Issues

Sustainable Supply Chain Management

Material Issues

Description of positive benefits

Sustainable Supply Chain Management

We lead the supply chain to become awareness of and actually participate in the sustainability issues to fully implement the evaluation mechanism, and improve the sustainability strength of the supply chain.

Material Issues

Description of negative benefits

Sustainable Supply Chain Management

Rexon Industrial actually did not have negative impact incidents in the reporting year. However, the preliminary ESG investigation shows that many suppliers did not have full understanding of these issues, but most of them are willing to introduce or participate in the sustainability improvement activities of Rexon. Through these activities, Rexon can reduce the negative impact of the sustainability issues on the suppliers and improve the benefits of the sustainability operations.

Material Issues

Remedial mechanisms / measures

Sustainable Supply Chain Management

For suppliers who do not quite understand ESG, we lead them to join the learning process and improve their awareness of sustainability through dissemination and education and training at the supplier meeting. For suppliers who are willing to engage in sustainable operations but have no idea of how to proceed due to a lack of relevant experience, we provide them with appropriate assistance, such as recommending a consulting unit or sharing our successful experiences and achievements as a reference for introducing the ESG system.

Material Issues

Complaint / communication channels

Sustainable Supply Chain Management

T establish a corporate culture of Integrity, Stability, and Growth and promote sound management within the Company, we establish the “Ethical Corporate Management Best Practice Principles” with reference to the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and relevant laws and regulations. We have set up a whistleblowing system according to the Principles to report violations of professional ethics. This includes the whistleblowing channel and handling procedure to protect the legal rights and interests of the whistleblowers and related parties. Any internal or external stakeholders of Rexon Industrial who discover any behavior that may jeopardize the reputation or property security of the company, or any acts of corruption, theft, embezzlement, misconduct, fraud, or other unethical and dishonest conduct, can make reports and complaints through the following whistleblowing channels provided by Rexon Industrial.
At the supplier end, Rexon will guide and suggest suppliers to establish a smooth and effective complaint channel for related parties and a whistleblower protection mechanism.
Complaint mailbox: GSCM@rexon.com.twResponsible Department: Procurement Department

Material Issues

Objective

Sustainable Supply Chain Management

The purpose is to enhance the awareness of sustainable operations in the supply chain, ensure compliance with Rexon's corporate culture of “Integrity, Stability, and Growth”, and improve the overall competitiveness of the supply chain.

Material Issues

Responsibility

Sustainable Supply Chain Management

Organization: R-Team Lean Supply Chain
Project leader: Vice President of Global Procurement
Responsibilities: Supply chain integration, Lean & ESG guidance, identification and development of high-quality suppliers through collaborative learning and growth with R-Team and Rexon.

2023 goals

Achievement status of 2023 goals

Short-term Goals（2024~2025）

Medium-term and Long-term Goals（2026~2030）

2023 goals

Draft the "Supplier Code of Conduct (Guideline)."
Within the existing R-Team Lean Supply Chain organization, an ESG team will be established to provide guidance to 15 selected suppliers in the first phase of carbon inventory assessment, scheduled to take place in 2023.

Achievement status of 2023 goals

The "Supplier Code of Conduct" was announced in December 2023 and 62 suppliers have signed the Code.
10 suppliers were invited and the Corporate Synergy Development Center was commissioned to complete the greenhouse gas inventory and low-carbon diagnosis in December 2023.

Short-term Goals（2024~2025）

80% of the suppliers have signed the "Supplier Code of Conduct".
80% of the suppliers have completed the self-evaluation against the Supplier Social Responsibility Self-Evaluation Form.
An ESG assessment item is added for the audit of new supplies. The score must be at least 4 points (out of 10 points)

Medium-term and Long-term Goals（2026~2030）

95% of the suppliers have signed the "Supplier Code of Conduct".
90% of the suppliers have completed the self-evaluation against the Supplier Social Responsibility Self-Evaluation Form.
The score of the ESG assessment item for the audit of new supplies must be at least 5 points (out of 10 points)

Material Issues

Sustainable Supply Chain Management

Material Issues

Specific actionsin 2023

Sustainable Supply Chain Management

We promoted ESG initiatives, sustainable operations, and anti-corruption to suppliers at the supplier meeting.
10 suppliers were invited and the Corporate Synergy Development Center was commissioned to complete the greenhouse gas inventory and low-carbon diagnosis in December 2023.

Material Issues

Management Measurement Mechanism

Sustainable Supply Chain Management

We evaluate the three quantified indicators of quality, delivery time and cost competitiveness of the suppliers and gives a rating from Grade A to Grade D. Licenses and praises are granted to Grade A suppliers in priority, while Grade suppliers are requested to make improvement or eliminated through an audit and guidance mechanism.
The "Supplier Social Responsibility Self-Evaluation Form" is used for audit and improvement guidance.
New suppliers are scored and selected according to the “New Supplier Assessment and Evaluation Regulations”, which contains a ESG assessment item.

Material Issues

Results

Sustainable Supply Chain Management

On January 9, 2023, the supply chain e-commerce platform will be upgraded. From January 4 to January 5, three education and training sessions will be conducted, involving a total of 161 suppliers. At the beginning of each session, an anti-corruption advocacy video by the Anti-Corruption Agency will be played to reiterate the company's integrity policy to the suppliers.
62 suppliers had signed the "Supplier Code of Conduct" as of December 2023, accounting for 17% of the total suppliers.

Product Quality and Responsibility (Material Topic)

Under the implementation of the PDCA cycle management, Rexon closely follows international standards and aligns with customer industry requirements to obtain various product certifications. This ensures the quality of its products and demonstrates a sense of responsibility towards customers.

PRODUCT

HEALTH AND SAFETY

Product Quality and Responsibility _

Rexon has always adhered to the three "no" policies as the company's quality culture motto: "No defective parts enter Rexon; No defective products are passed to the next process; No defective finished goods leave Rexon." To implement the quality policy effectively, the company focuses on thorough source management to ensure zero defects, quick response, and meeting market and customer demands. The quality management process and framework (as shown in the diagram) demonstrate Rexon’s continuous improvement in organizational practices and methods to enhance service quality, ultimately aiming to achieve customer satisfaction.

Material Issues

Product health and safety

Material Issues

Description of positive benefits

Product health and safety

Rexon Industrial implements strict product safety inspection standards. This action has positive impact on improving consumer's trust in the products of Rexon Industrial, enhancing our brand value, complying with relevant laws and regulations, promoting innovation and product improvement, demonstrating our responsibility to the society, and improving the employee satisfaction and loyalty. These measures not only improve our competitiveness, but also lay a solid foundation for the long-term sustainable development of Rexon Industrial.

Material Issues

Description of negative benefits

Product health and safety

The Company actively performs preventive measures such as product safety review, quality control, compliance with safety standards, and user testing. There were actually no product safety incidents or violations in the past. To reduce potential risks, we take measures such as the safety review mechanism at different development stages and the user testing to prevent possible negative impacts, such as the issues of

the product defective rate is too high
there are too many customer complaints
Products are returned in a significant quantity.
too many product-caused PLI (Product Lability Insurance) incidents.

Material Issues

Remedial mechanisms / measures

Product health and safety

Rexon has established a comprehensive complaint and remedy mechanism for products, including rapid response to consumer complaints, recall of unsafe products, and provision of corresponding remedial measures. Details are described below.

A customer gives feedback of abnormal quality
Information is collected completely in a way of 5W2H
Relevant departments are called on to form a project team for investigation
A 8D report is completed and a reply of preliminary determinations and immediate measures is given to the customer.
Corresponding measures are implemented, the customer agrees to close the case, and follow-up actions are taken

Material Issues

Complaint / communication channels

Product health and safety

Customers can directly contact Rexon’s sales representative and QA contact person by mail or phone.

Material Issues

Policy / commitment

Product health and safety

Pursuant to ISO 9001 quality management certification, we uphold the principles of quality first and customer first, continue to conduct measurement, analysis and review through the quality system, and make improvement of the effectiveness to ensure stable quality.

Material Issues

Objective

Product health and safety

Protection of consumer safety: Ensure that all the products meet the highest safety standards before they are introduced to the market to avoid any risk to the health of the consumer.
Compliace with statutory requirements: Comply with relevant health and safety regulations and standards to avoid legal problems and financial penalties caused by non-compliance.
Prmotion of innovation and continuous improvement: Pay attention to health and safety in the product design and manufacturing processes to stimulate innovation and promote continuous improvement of products and processes.

Material Issues

Responsibility

Product health and safety

Development Department, Quality Assurance Department

2023 goals

Achievement status of 2023 goals

Short-term Goals（2024~2025）

Medium-term and Long-term Goals（2026~2030）

2023 goals

Whether 100% of the models complied with safety regulations
Customer complaint cases related to product safety <3

Achievement status of 2023 goals

100% of the model from the mass production in 2023 complied with safety regulations
There were actually 2 cases in 2023 (potential)

Short-term Goals（2024~2025）

100% of the model from the mass production in 2024 complied with safety regulations
2024 goal: 0 case

Medium-term and Long-term Goals（2026~2030）

Establish new product quality positioning and set early stage standards.
Implement source management thoroughly, ensure zero quality defects, and improve customer satisfaction.

Material Issues

Product health and safety

Material Issues

Specific actionsin 2023

Product health and safety

We conduct reliability testing for all new models and follow local statutory safety requirements completely from the development to the mass production of these models. We continue to follow up on customer complaints related to safety issues after the mass production. The goal of the number of customer complaints related to safety issues set for 2023 was less than 3 cases, and there were actually 2 cases. A periodical reliability test is introduced to monitor the product quality after the mass production. The goal of the number of customer complaints set for 2024 related to the models from the mass production was 0 cases.

Material Issues

Management Measurement Mechanism

Product health and safety

As for the measurement mechanism, explicit regulations are established and implemented in accordance with the planning and control of product design and development specified in ISO 9001 to ensure the quality of design and development.

MATERIAL SOURCE

QUALITY CONTROL

Control of Material Quality _

To adapt to the market trends focused on consumer orientation and shortened sales channels, Rexon has implemented thorough source management through supplier management. This ensures zero defects in quality, timely adjustments in quality policies for quick response, and listening to consumer voices to meet market and consumer needs. Rexon continuously improves its existing workflow, enhances process capabilities, and strives to meet consumer demands for products, services, and new offerings, even surpassing their expectations. Therefore, the company maintains continuous monitoring of supplier input quality and establishes a supplier guidance source control mechanism as depicted in the diagram.

To strengthen supplier quality management, Rexon implements a quantitative measurement system to monitor the incoming material quality of various component suppliers. The quality indicators and their respective weights are as follows: rejection rate (25 points), downtime (20 points), unpacking batches (20 points), online anomalies (15 points), and special acceptance of incoming materials (20 points);
The Quality Assurance department compiles the scores on a monthly basis for each supplier and provides guidance and audits accordingly;
Suppliers with an annual score of 90 or above in the A grade category are recognized publicly at the Supplier Conference as high-quality suppliers;
Suppliers that fail to meet the evaluation criteria undergo audits conducted by the Supplier Quality Engineer (SQE). If the supplier fails to make improvements after multiple audits, Rexon will stop awarding new projects to that supplier. All suppliers in the reporting year passed the evaluation, and there were no nonconforming suppliers.

PRODUCT

SAFETY

Product Safety _

In the context of the global commodity safety, countries have established relevant specifications and regulations to ensure the quality and safety of imported products. As a manufacturer of fitness devices and woodworking machines, we know quite well that safety and quality are the core value indispensable to our products. Rexon Industrial strictly observes relevant laws and regulations of all the countries, and obtain required certificates through corresponding certification institutions to ensure that our products comply with local safety standards. All the products, including outsourced products and accessories, are designed and manufactured in accordance with relevant specifications and regulations of each country.

Product Category

Compliance with Standards and Certifications (Verification)

Product Category

Fitness device

Compliance with Standards and Certifications (Verification)

ETL Safety Certification (US), ETLc Safety Certification (Canada), FCC Electromagnetic Interference Certification (US), ASTM Safety Certification (US), CA65 Verification (US), CE Safety Certification (EU), LVD Safety Certification (EU), EMC Electromagnetic Interference Certification (EU), EN ISO 20957 Safety Certification (EU), UKCA Safety Certification (UK), REACH (SVHC) Verification (EU), RoHS Verification (EU), INTERTEK Verification (US), TUV_SUD Verification (Germany), CA65 Safety Certification (US), REACH (SVHC) Verification (EU), RoHS Verification (EU).

Product Category

Power tool

Compliance with Standards and Certifications (Verification)

UL Safety Verification (US), CSA Safety Certification (Canada), TÜV Rheinland Verification (Germany), EMC Electromagnetic Interference Certification (EU), CE Safety Certification (EU), National Standards of the Republic of China (Taiwan), BSMI Safety Certification (Taiwan), Ministry of Labor Machinery Equipment Safety Protection Standards (Taiwan), etc.

Certification for Fitness Equipment-Peloton-American ASTM

Certification for Fitness Equipment-European LVD

Certification for Fitness Equipment-American ETL

Certification for Power Tools-TS

Certification for Power Tools-BSMI

Certification for Power Tools-European CE

Certification for Power Tools-BSMI

Certification for Power Tools-European CE

Rexon ISO-9001 Certificate (Chinese)

Rexon ISO-9001 Certificate (English)

Certification for Power Tools-American CUL

Product Liability Insurance Coverage

In addition to risk and crisis assessments, Rexon has implemented preventive measures to safeguard employees, customers, equipment, components, factories, and third parties against potential damages or injuries resulting from product accidents. All products manufactured by the company are covered by product liability insurance. Over the years, there have been no unreasonable compensation claims, indicating the significant effectiveness of the company's management operations, product quality, and factory planning.

Consumer Rights Protection

Rexon is committed to protecting consumer rights and ensuring that consumers have access to adequate information when purchasing products. The company aims to provide safe and correct usage of its products, avoiding any dangers caused by improper operations, adjustments, or maintenance. Therefore, Rexon's products adhere to relevant local government safety regulations. The product operation manuals clearly and explicitly state the correct installation, adjustment, operation, and maintenance procedures, as well as relevant warnings. Product specifications, usage instructions, and warning labels are affixed to the products to provide consumers with sufficient safety and usage information.

To comply with the latest regulations, Rexon assigns dedicated staff to attend product labeling seminars, ensuring awareness of the latest regulatory requirements and updating product labeling standards to meet customer needs and government regulations. The company also cooperates with inspections and sampling conducted by the Bureau of Standards, Metrology and Inspection (BSMI) and the Ministry of Labor to ensure the accuracy of product labeling.

Product Labeling

Rexon is committed to protecting consumer rights and ensuring that consumers have access to adequate information when purchasing products. The company aims to provide safe and correct usage of its products, avoiding any dangers caused by improper operations, adjustments, or maintenance. Therefore, Rexon's products adhere to relevant local government safety regulations. The product operation manuals clearly and explicitly state the correct installation, adjustment, operation, and maintenance procedures, as well as relevant warnings. Product specifications, usage instructions, and warning labels are affixed to the products to provide consumers with sufficient safety and usage information.
To comply with the latest regulations, Rexon assigns dedicated staff to attend product labeling seminars, ensuring awareness of the latest regulatory requirements and updating product labeling standards to meet customer needs and government regulations. The company also cooperates with inspections and sampling conducted by the Bureau of Standards, Metrology and Inspection (BSMI) and the Ministry of Labor to ensure the accuracy of product labeling.

Management of Chemicals

In the modern manufacturing environment, control of hazardous substances has become an integral part of enterprises not only because of the increasingly stringent regulatory requirements, bus also because of the responsibility for the environmental protection and consumer health. Rexon Industrial understands the importance of this. We have established a comprehensive hazardous substance management approach to ensure that our products comply with relevant regulations and standards, and provided customers with safe and reliable products. As for the management, we operate the four-stage PDAC (Plan-Do-Check-Action) cycle in a series so that we can fully control the source of the harmful substances, perform effective testing, and make adjustment and improvement as required at any time. From the identification and implementation of statutory requirements, the validation and implementation of new parts to the testing and audit of hazardous substance, we can finally control these substances effectively through management actions.

Risk Identification and Management for Use of Products

Rexon Industrial conducts random inspection in accordance with the quality management requirements of the "Regulations for Shipment and Return Inspections of Finished (Purchased) Products", and fills in the Finished Product Random Inspection Daily Checklist to ensure the safety and reliability of products at the time of shipment. The Company adheres to the “Three Nos Policy” and emphasizes that no defective parts enter the factory, no defective products are delivered to the next engineering process, and no defective products leave the factory. These are the mottos of our quality culture to ensure that the quality of the products meets the market demand.
Rexon Industrial has a complete process and structure in the aspect of the "Quality Assurance Department Implementation Regulations of New Product Quality Assurance". The Company constantly makes improvement of the organization and approach to enhance service quality for the ultimate goal of customer satisfaction.
Rexon Industrial uses quantified indicators to monitor the parts, components and incoming quality of each subcontractor according to the "Subcontractor Management Regulations" and conducts supplier guidance and audit to ensure the stability of the product quality.

Information on Hazardous Substances in Products

To ensure the health of consumers and the sustainable development of the environment, Rexon follows the government's regulations on the use of hazardous substances and provides a "Product Restricted Substances Marking Table" (as shown in the figure) in the product manual, specifying the standards for the use of hazardous substances in products and ensuring compliance with regulatory control requirements.

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Specific Actions in 2023

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Identification and implementation of statutory requirements:
Rexon Industrial proactively identifies the specific requirements of hazardous substance regulations in different markets and, at the same time, pay close attention to any amendments to the existing regulations in order to ensure the compliance of the Company.
In addition, we periodically make announcement to suppliers and take explicit response measures to ensure the compliance of all the products in the supply chain. As for the management of the Prohibited and Restricted Substances List, this is amended periodically in accordance with the hazardous substance regulations and customer requirements to ensure the timeliness and accuracy of the List.

Specific Actions in 2023

As for the Substances of Very High Concern under the EU REACH, the Company will update the internal management in a timely manner to ensure that all the products comply with the standards at all stages under relevant regulations.

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Validation of new parts:
Rexon Industrial requires that all parts of new manufacturers, new materials, and new specifications undergo a comprehensive parts validation process. At the sample delivering stage, the manufacturer needs to provide a third-party hazardous substance test report to make sure that new parts meet the requirements of relevant prohibition and restriction regulations.
Only after confirming the compliance with statutory requirements can new parts enter mass production and be used in product manufacturing.

Specific Actions in 2023

Rexon Industrial inspected a total of 1946 new parts at their validation stage to ensure that they met requirements of relevant prohibition and restriction regulations. No noncompliance cases were identified.
This demonstrates that Rexon Industrial maintains a high compliance and quality standard in the introduction of new parts.

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Hazardous substance testing of raw materials:
Rexon Industrial requires all the raw material suppliers to comply with statutory requirements in terms of the hazardous substance in the product, including self-declaration and third-party verification.
Rexon Industrial check suppliers to ensure their implementation of hazardous substance management and make sure the compliance of raw materials.

Specific Actions in 2023

During industrial review, the test reports of 404 parts from 146 suppliers were in the checking process.
All the suppliers conducted testing in accordance with the management rules established by the Company and ensured that the use of relevant raw materials complied with the requirements of hazardous substance regulations.

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With regard to the management, the QA unit conducts the review of the hazardous substance operation status.

Specific Actions in 2023

No incompliance with hazardous substance regulations was identified during the supplier audit.
The implementation of third-party testing among suppliers was ensured.

Rexon Industrial persists in the commitment to the product quality and environmental protection. We are well aware of the strict requirements of the hazardous substance regulations in the modern market. Compliance with Reach, RoHS and other regulations is the primary goal of the Company. We work closely with suppliers, periodically monitor the changes of the statutory requirements in the market, and adjust products in a timely manner to ensure compliance with the latest standards. When an incoming product is incompliant with the statutory requirements, we will deal with it internally according to the nonconformity handling regulations and standards of the Company, and notify to the market end in a timely manner to protect the rights and interests of the Company and the customer.
When a nonconformity is identified at the market end, production will be suspended immediately and conforming products will be prepared for replacement immediately to ensure that customers can receive safe and reliable products continuously. We will make unremitting efforts to become an industry leader in the hazardous substance management.

Corporate Sustainability Development Survey

To achieve more effective communication with stakeholders who care about our company,we sincerely invite you to take the time to complete this questionnaire.
Your participation will enable us to gain a better understanding of the issues that stakeholders are concerned about and enable us to respond actively.

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CORPORATE SUSTAINABILITY

Product Field

Power tools _

Benchtop power tools

Portable power tools

Fitness equipment _

Spin Bike

Tread Mill

Recumbent Bike

Upright Bike

Elliptical

Stepmill

Research and Development / Manufacturing (Material Topic) _

Green Products

Outreach to Green Gardening Tools:

FEATURES

Patent Fields and Distribution _

USA /

Taiwan /

China /

Number of Patents in Taiwan

Number of Patents in China

Number of Patents in the United States

Number of Patents in other countries

Number of Patents

Patent Count Statistics – Patent Classification

Percentage of National Patent Counts

Percentage of Patent Classifications

Supply Chain Collaboration (Major Topic)

Sustainable Supplier Management _

Product Quality and Responsibility (Material Topic)

Product Quality and Responsibility _

Control of Material Quality _

Product Safety _

Product Liability Insurance Coverage

Consumer Rights Protection

Corporate Sustainability Development Survey