In terms of innovative R&D, Rexon Industrial continues to position Taiwan Headquarters as its R&D center, integrating market feedback from its U.S. subsidiaries and the manufacturing resources in China. The Company is committed to developing high-quality products that meet the needs of both customers and consumers. The Company continues to strengthen its internal innovation capacities. Green Innovation Committee and New Business Committee meetings are convened regularly to review proposals from various units. Additionally, the Company actively invests in R&D and application of value analysis and value engineering (VA/VE) to further enhance product competitiveness and market sales performance.
POWERTOOLS
Power tools _
In the power tool market, we continue to focus on developing high-quality products, while keeping up with market trends to launch durable and high-performance corded power tools.Although the demand for cordless charging tools has grown rapidly in recent years, corded models still hold a significant place in the professional field due to their stable performance and high power output.In response to market changes, we began by collaborating closely with well-known brands to jointly develop high-quality desktop power tools. We have also leveraged our outstanding R&D capabilities and production technologies to gain customer recognition and further strengthen our market position. Finally, through innovative design and rigorous quality control, we continue to deliver more competitive solutions to help our customers stand out in the market.
OUTDOOR POWEREQUIPMENT
Garden tools _
With the consistently growing demands of global garden lovers for high-performance and convenient tools, Rexon continues to improve its garden tools, such as lawnmowers, hedge trimmers, and leaf blowers, by integrating innovative design and delivering exceptional performance to meet market needs.Our lawnmowers feature ergonomic design and a gearless function. In addition to easy and smooth operation that significantly improves work efficiency, we continuously optimize the product to make it more durable and comfortable, earning strong user approval.Our hedge trimmers feature a lightweight design and well-balanced weight distribution, making trimming operations more flexible and effortless, even during extended use. In addition, Rexon has enhanced product functions for different scenarios to ensure they meet the needs of professional gardeners and are also suitable for everyday maintenance by household users.
With their strong and powerful airflow, our leaf blowers can easily remove fallen leaves. In addition, optimized noise control and energy efficiency allow our products to combine high performance with environmental friendliness, making them a popular choice in the market.Rexon is committed to listening to our customers’ feedback and incorporating it into product design and development to ensure every tool meets real customer needs. At the same time, we are actively exploring new materials and technologies to further improve product performance and reliability.
FITNESSEQUIPMENT
Fitness equipment _
As global health awareness continues to rise, the fitness boom has continued to accelerate. In 2024, the demand for home-use or light commercial fitness equipment continued to grow. In response to this boom, Rexon has strengthened partnership with the world’s top five commercial fitness equipment brands and its largest start-up client.In 2024, we successfully secured an OEM order for electric treadmills from a long-term, prime client, marking an important milestone in our partnership. Rexon’s successful entry into the treadmill supply chain of this key client was largely due to the experience and reputation it has built through producing electric treadmills for its largest start-up client and other brands. This demonstrates the Company’s competitive advantages in R&D, production technology, and quality management.
To effectively grasp the future of fitness equipment trends, Rexon has further optimized the product design of various fitness equipment by applying value analysis and value engineering (VA/VE). With simplified design, material optimization, and function integration, we ensure that our products can meet the needs of end users while helping our customers strengthen their niche in market development. These continuous improvements reinforce Rexon’s leadership as an OEM manufacturer of fitness equipment, making us the best partner in supporting our customers’ global market expansion.
Spin Bike
Tread Mill
Recumbent Bike
Upright Bike
Elliptical
Stepmill
Key purpose : Body health improvement, medical treatment, body rehabilitation, weight loss, muscle-building and cardiopulmonary training as well as the enhancement of physical fitness.
WIRELESSTRANSCEIVER
Wireless transceiver _
The DMR commercial wireless transceiver is a core product of Rexon Technology. We have implemented multiple measures to this product to reduce energy demand and are committed to improving both product performance and user experience. The key product features are as follows:
Using digital mobile radio (DMR) technology: Utilizes frequency spectrum and energy more efficiently than traditional transceivers. In addition, digital signal processing technology can reduce energy losses during the transmission process, while delivering clearer audio and extending standby time
Equipped with low-power components and a high-performance battery management system: Reduces power consumption.
Equipped with high-capacity lithium batteries: Enables extended operation and meets the needs of business users.
Rapid charging capability: Shortens charging time and minimizes energy waste.
Smart sleep mode: Automatically shuts down unused functions to reduce energy consumption.
Optimizing power output according to the usage scenario: Lowers the transmission power during short-distance communication
The equipment has passed stringent tests and complies with MIL-STD 810G and IP standards: Ensures longer service life, reduces the need for frequent replacement, and indirectly lowers energy and resource waste.
RL-D500K‧DMR DMR digital wireless transceiver
RL-D800/RL-D800K‧DMR DMR digital radio transceiver
RL-D880K‧DMR DMR digital radio transceiver
RM-810‧DMR Vehicle-mounted base station for DMR digital radio transceiver
RM-810B‧DMR Base station for DMR digital radio transceiver
RPT-810‧DMR Same-frequency repeater for DMR digital radio transceiver
R & DMANUFACTURING
Research and Development / Manufacturing (Material Topic) _
Innovation and Expansion in Green Energy and Smart Technology
In 2024, with a core philosophy of “innovation in green energy and smart applications,” Rexon actively promoted the R&D and application of new technologies to create more diversified products and market solutions.In the drone motor sector, we focused on high-performance, compact BLDC (Brushless DC) motors and self-developed electronic speed controller (ESC) technology. We provide high-performance, stable, and reliable products to meet the needs arising from various scenarios, including logistics and transportation, agricultural spraying, and environmental monitoring. Meanwhile, we are actively exploring applications of BLDC technology in automation equipment, smart homes, and electric vehicles to unlock more possibilities in future market.In the electric-assisted bike market, we have participated in developing a domestically produced mid-mounted motor three-electric system and collaborated with partners to promote up to 85% of MIT (Made in Taiwan) electric-assisted bikes, helping to deepen Taiwan’s industrial chain integration and upgrade technology. In addition, we have launched the third generation of E-Cargo Bikes, featuring innovative and stable structural designs that enhance the safety and efficiency of logistics and transportation, further addressing needs from diverse usage scenarios.With the goal of achieving sustainable development and smart application, Rexon continues to integrate internal and external resources, and promotes product upgrades through technological innovation and cross-disciplinary cooperation, providing more efficient and eco-friendly solutions for the market and moving towards a sustainable future.
Material Topics
Research and Development (R&D) and innovation
Description of positive benefits
Actual positive: The dual focus on technology and sustainability innovation strengthens intellectual assets and brand value
Description of negative benefits
Potential negative: Stagnation in innovation may result in a decline in market share and operating revenue
Management mechanisms / measures
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 Note occurs, the risk management team holds a meeting to develop solutions.
Note: Material risks include serious occupational accidents, incidents that impact the Company’s operations, events that cause significant damage to the Company’s image, and abnormal situations that cannot be handled by the top executives of the respective functional organization.
Complaint / communication channels
Internal improvement proposal system : Employees can submit questions or suggestions related to innovative R&D through the Company’s internal improvement proposal system. This system not only provides a convenient channel for issue reporting but also facilitates timely problem-solving and fosters a deeper culture of innovation.
Innovation Collaboration Circle (ICC) and Quality Control Circle (QCC) : Innovation Collaboration Circle (ICC) activities are held every year to invite employees to participate in discussion and implementation of innovative proposals. Through this platform, employees can directly participate in the development and implementation of innovation ideas, thereby strengthening horizontal collaboration, boosting innovation capability, and fostering a fully participatory R&D culture.
2024 Action Plan / Implementation Results
Action Plan
36 proposals per year addressing product pain points
12 proposals per year for sustainable and innovative products.
6 new product specifications and standards per year.
Implementation results
36 proposals addressing product pain points/year.
12 proposals for sustainable and innovative products/year.
6 new product specifications and standards/year.
Achievement status of 2024 goals
Goals
Based on 2024 action plan implementation results, we provided customers with demand planning and innovative products: 12 proposals/year.
4 new products with commercialization potential as determined every year and transferred in the development project.
Achievement status
Goals achieved :
Number of innovative proposals: 12 proposals/year
Commercialization of new product 4 items/year
Short / Medium / Long-term Goals
Short-term Goals(2025-2026)
Proposals of innovative products planned to meet customer’s needs: 12/year
4 new developable industrial commodities as determined every year and transferred in the development project.
Establish Rexon Low-Carbon Emission Material Database.
Medium-term and Long-term Goals(2027~2031)
Launch 1 sustainable product.
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.
Sustainable action: Proactive carbon reduction design and datafication
Integrate energy-saving and carbon-reduction concepts into the component design stage, and use digital tools for efficiency assessment to enhance the environmental friendliness at the design stage : During the component development stage, we collect data on “energy consumption” and “carbon footprint” across each process. Through “scientific” and “digital” analysis, we help customers understand the benefits of carbon reduction design on products, thereby enhancing their recognition of sustainable values, increasing engagement, and encouraging consumer awareness and willingness to act on environmental protection.
Tangible results:By replacing the TPR coating with ABS and incorporating an anti-skid pattern design, the Company has simplified the manufacturing process, reduced carbon emissions, lowered manufacturing costs, and made products more environmentally friendly at the recycling stage, all without compromising their functionality. The original design used composite materials, which made recycling difficult and resulted in carbon emissions of 3.62 kg CO2e/kg; the new design uses a single material and simplifies the structure, reducing the carbon emission to 2.28 kg CO2e/kg, a decrease of 1.34 kg CO2e/kg (a 37% reduction).
Original design (ABS+TPR)
Material
Two materials(ABS + TPR)
Process
Two-shot injection
Anti-skid effect
Achieved with soft TPR
Cost
Higher
Recyclability
Composite materials are difficult to sort and recycle.
Carbon emissions
3.62 kg CO2e/kg
New design (ABS+ anti-skid pattern)
Material
Single material (ABS)
Process
Single-shot injection
Anti-skid effect
Achieved with anti-skid pattern
Cost
Reduce mold, passes, and material costs
Recyclability
Single material is more recycling-friendly
Carbon emissions
2.28 kg CO2e/kg
Sustainable action: Manufacturing brushless motors to replace engine-driven electric garden tools
To align with the environmental sustainability trend of transitioning from fossil fuels to electricity and to reduce the carbon emissions from engine-powered tools, technical tools have been employed to support agricultural and forestry development, as well as enhance the safety of environmental monitoring and protection. Furthermore, core electromechanical technologies have been introduced to manufacture a series of brushless motor-driven electric garden tools to replace the engine-powered models.In 2024, one leaf blower, two hedge trimmers, and three electric lawnmowers entered mass production. All are equipped with high-performance brushless motors and shoulder-mounted lithium battery modules. These tools not only operate more efficiently than traditional engine models, but also eliminate the need for fossil fuel combustion, significantly reducing carbon emissions during use.In addition, the battery-powered mode is highly integrated and flexible, making it compatible with renewable energy systems (such as solar power charging stations) in the future, further promoting the use of green energy and enhancing carbon reduction benefits.
UAVPOWER
UAV power _
Highlights of new business expansion in drone motors:
By leveraging technical expertise accumulated over years in BLDC technology, Rexon provides reliable and high-performance motor solutions addressing needs from various scenarios such as logistics and transportation, agricultural spraying, and environmental monitoring. In pursuit of more effective market applications, we have optimized the power efficiency, stability, and energy consumption performance in our drone motor R&D to ensure that the products can maintain outstanding performance under high loads and extended operation. In addition, Rexon has actively collaborated with drone brands to develop customized motor solutions that meet customers’ stringent requirements for motor torque, rotational speed, and energy conversion efficiency.
Beyond the core development of drone motor technology, the subsidiary, Rexon Technology, has also invested in R&D and production of the compatible electronic speed controllers (ESC) to optimize the overall power system. We ensure that the ESC is precisely matched to drone motors through industry-government-academia collaboration and circuit design R&D. Our goal is to improve control accuracy and energy conversion efficiency, reduce heat loss, and improve product durability. Our ESC, equipped with high-performance algorithms, responds to changes in flight status in real time to deliver smoother power output, thereby improving drone control stability and extending battery life.Throughout the production and development process, we rigorously adhere to standards for integrated development, manufacturing, and design verification to ensure that every stage, from prototype design to mass production, meets the high quality requirements. We are not only committed to improving the performance of motors and ESCs, but also to ensuring that our products operate steadily under various environmental conditions through rigorous testing and verification processes.Drone motors are not only Rexon’s primary focus in technological applications at current stage, but also the starting point for exploring the diverse applications of BLDC technology. We plan to expand the application of this technology to additional fields, including automation equipment, smart homes, and micro electric vehicles, in order to further grow our market share.
In the future, Rexon will continue to invest in optimizing drone motor-related technologies and developing new applications to ensure that product competitiveness aligns with market demands. Our goal is to become a key player in the drone motor sector and deliver innovative, reliable green energy solutions to customers worldwide.
Drone motor 10012
Drone motor 10018
Drone ESC ES1000RX
Subsidy Program for Empirical Operation of Domestically Produced Mid-mounted Motor Electric-Assist Bicycles
The Company participated in the “Subsidy Program for Empirical Operation of Domestically Produced Electric-Assist Bicycles,” sponsored by the Ministry of Economic Affairs. In collaboration with partners, such as IDEAL, ATrack Technology, and MPS Energy, the Company promoted the development and mass production of domestically manufactured e-bikes. Under this program, Rexon Industrial is responsible for the design and manufacturing of the mid-mounted motor system. We will leverage our extensive experience in BLDC motor technology and structural development to provide reliable power solutions for e-bikes. A key highlight of the program is the 85% MIT ratio, with core components, including electric motors, electronic controls, and batteries, all designed and manufactured in Taiwan. This showcases the coordination capabilities of the domestic industrial chain. This collaboration not only demonstrates technological capabilities but also lays a foundation for future technological improvement and market expansion in the e-bike sector.In addition, the program aligns with the global trends in environmental protection and sustainable development, demonstrating our commitment to environmental protection and industrial advancement by optimizing motor design and actively promoting the application of sustainable transportation technologies.
E-CARGOBIKE
E-CARGO bike _
Rexon’s third generation of E-Cargo Bike has adopted an innovative anti-roll design and a two-front-one-rear wheel structure to enhance cockpit stability, greatly improving the stability and safety during riding. This improvement not only offers passengers a more comfortable experience, but also ensures the safety and stability of delivered goods, fully meeting the demands of urban logistics for efficient and reliable transportation solutions. Compared to the previous two generations, the third generation of E-Cargo Bikes is better suited for diverse scenarios, including urban delivery, daily transport, and outdoor recreation, demonstrating Rexon’s innovation capabilities and market insights in the e-bike sector.With the continuous development of E-Cargo Bikes, we continue to promote sustainable transportation solutions that contribute to sustainable urban development and improved air quality. At the same time, we provide users with more convenient and more eco-friendly transportation options.
OUTDOOR SPORTSCOMMUNICATOR
Outdoor sports communication devices _
Rexon Technology has reduced the size and streamlined structure of existing wireless transceivers to minimize hardware components. The design integrates the concept of sustainability and innovation by using eco-friendly materials, reducing energy consumption, and increasing battery life to achieve a more sustainable product design. This improvement also meets the needs of specific market customers by making transceivers lighter, more portable, and suitable for various sports scenarios, such as cycling and snowboarding. It enables users to maintain clear communication during physical activity, enhancing both convenience and safety, while balancing environmental protection with performance.
PATENT FIELDAND 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
67
Number of Patents in Taiwan
27
Number of Patents in China
43
Number of Patents in the United States
8
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 145 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
42
Power Tools
88
Outdoor Power Equipment
3
E-mobility
9
Powertrain
3
Total
145
Taiwan 46%
China 19%
The United States 30%
Other countries 5%
Percentage of National Patent Counts
Electric Tools 61%
Fitness Equipment 29%
Outdoor Power Equipment 2%
E-mobility 6%
Powertrain 2%
Percentage of Patent Classifications
Supply Chain Collaboration (Material Topic)
Rexon regards “Integrity, Stability, and Growth” as its core values. In terms of social responsibility and business conduct, the concrete actions are as follows : As for the internal aspect, including responsible business conduct, we arrange education and promote the importance of the professional ethics and behavior at morning meetings as needed, and have established the “Code of Ethical Conduct” specifying the prohibition of corruption and bribery, conflict of 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. The target for 2023 was to have 88 suppliers sign, and 88 suppliers actually signed, achieving a 100% completion rate. In 2024, the target was to have suppliers representing 70% of the transaction amount (about 159 suppliers). As of the end of 2024, a total of 159 suppliers have signed, achieving a 100% signing rate. In view of the strong cooperation of suppliers, Rexon expects that suppliers representing 80% of the total transaction amount will have signed the Code by 2025.
Rexon Technology will adopt the sustainable supply chain management model of its parent company, Rexon, to promote sustainable initiatives among suppliers. The company plans to establish the “Supplier Code of Conduct” by 2025 for external communication and formal agreements with suppliers. By the end of 2026, it expects that suppliers accounting for 100% of its transaction amount will have signed the Code. Through a shared understanding both within and outside the organization, and by upholding Rexon’s social and business responsibility standards, we work hand in hand toward a sustainable supply chain.
Material Topics
Sustainable Supply Chain Management
Description of positive benefits
Actual positive : Establishing a sustainable supply chain enhances overall operational performance and adaptability, fosters common prosperity across the supply chain, and strengthens supply resilience and sustainable competitiveness.
Description of negative benefits
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.
Management mechanisms / measures
Formulate the Supplier SRA Self-Assessment Form.
We encouraged suppliers 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 sustainability system.
Complaint / communication channels
Complaint mailbox : GSCM@rexon.com.tw Responsible Department : Procurement Department
2024 Action Plan Implementation Results
Action Plan
The Company held its annual supplier conference along with a sustainability initiative meeting, where three material topics, including “Global Sustainable Development Trend,” “Sustainable Development Progress of Rexon,” and “Sustainable Initiative Communication,” were presented to promote and advocate ESG concept among suppliers. “Thank You for your Contribution to the Big Leads Small Project” certificates were given to 10 suppliers in recognition of their active participation in the low-carbon project. With 10 suppliers already participating in the “Big Leads Small Project,” the Company has demonstrated the ripple effect of learning and influence. At the supplier conference, many partners actively inquired about the process and preparations for greenhouse gas inventory, reflecting a growing willingness to engage in sustainability initiatives across the supply chain.
During two R-Team sharing sessions and year-end meeting, the Company explained and communicated the “Supplier Code of Conduct” and issues related to social responsibility in advance to help suppliers better understand the content and key implementation points, thereby facilitating the smooth rollout of subsequent signing and self-assessment procedures.
Implementation results
Two supplier conferences and sustainability initiative meetings were held during the year, with active participation from 166 suppliers.
A total of 159 suppliers have signed the “Supplier Code of Conduct,” achieving a 100% signing rate
A self-assessment was conducted, and 115 suppliers completed the “Social Responsibility Self-Assessment Form,” achieving a 100% completion rate.
Achievement status of 2024 goals
Goals
Suppliers representing 70% of the total transaction amount for 2024 are required to sign the “Supplier Code of Conduct.”
Suppliers representing 80% of the total transaction amount for 2024 are required to complete the “Social Responsibility Self-Assessment Form.”
An ESG assessment item is added for the audit of new suppliers, with a score of at least 40 points required to pass.
Achievement status
Goals achieved :
A total of 159 suppliers, representing 70% of the total transaction amount, have signed the “Supplier Code of Conduct,” achieving a 100% signing rate.
A total of 115 suppliers, representing 80% of the total transaction amount, have completed the “Social Responsibility Self-Assessment Form,” achieving a 100% completion rate.
An ESG assessment item is added for the audit of new suppliers. All 10 new suppliers reached a score of at least 40 points, which is required to pass.
Short / Medium / Long-term Goals
Short-term Goals(2025-2026)
Suppliers representing 100% of the total transaction amount for the year are required to complete the “Supplier Code of Conduct.”
Suppliers representing 85% of the total transaction amount for the year are required to complete the “Supplier Social Responsibility Self-Assessment.”
An ESG assessment is added for the audit of new suppliers, with a score of at least 45 points required to pass.
The number of suppliers conducting GHG inventories increased by 30% compared to the previous year.
Medium-term and Long-term Goals(2027~2031)
Suppliers representing 90% of the total transaction amount shall fulfill the specified requirements. Social responsibility self-assessmentand high-risk audit.
The ESG assessment for new supplier audit requires a passing score of at least 55 points.
The number of suppliers conducting GHG inventories increased by 30% compared to the previous year.
Sustainable action : Proactive carbon reduction design and datafication
Integrate energy-saving and carbon-reduction concepts into the component design stage, and use digital tools for efficiency assessment to enhance the environmental friendliness at the design stage : During the component development stage, we collect data on “energy consumption” and “carbon footprint” across each process. Through “scientific” and “digital” analysis, we help customers understand the benefits of carbon reduction design on products, thereby enhancing their recognition of sustainable values, increasing engagement, and encouraging consumer awareness and willingness to act on environmental protection.Tangible results:By replacing the TPR coating with ABS and incorporating an anti-skid pattern design, the Company has simplified the manufacturing process, reduced carbon emissions, lowered manufacturing costs, and made products more environmentally friendly at the recycling stage, all without compromising their functionality. The original design used composite materials, which made recycling difficult and resulted in carbon emissions of 3.62 kg CO2e/kg; the new design uses a single material and simplifies the structure, reducing the carbon emission to 2.28 kg CO2e/kg, a decrease of 1.34 kg CO2e/kg (a 37% reduction).
Selection of New Suppliers
Rexon Industrial’s new suppliers are scored and selected according to the “New Supplier Assessment and Evaluation Regulations.” To enhance the sustainable development capability of the supply chain, the Company added an ESG assessment item in 2023 (detailed in the table below) and introduced it in the assessment of all the new suppliers in 2024. According to the statistics, 10 new suppliers were evaluated in 2024; the percentage of the suppliers evaluated based on the environmental and social criteria was 100%. As for the new ESG assessment items, all suppliers reached a passing score of 40 points for the initial target, but only 6 suppliers reached 80 points for the medium- and long-term targets, accounting for 60% of the total. This clearly indicates that suppliers’ ESG awareness and performance need further improvement. Rexon will progressively raise its targets annually and continue to select high-quality suppliers. These initiatives aim to enhance the sustainable development capability of the value chain and thus respond to the expectations of Rexon and the customer to the sustainable supply chain.
New supplier evaluation items
Item
Score ratio
Score description
Item
Quality control
Score ratio
30%
Score description
Quality control system and dedicated personnel.
Inspection and data maintenance, such as incoming materials, production process, finished products (self-inspection checklist)
Standard operating procedures and process engineering procedures.
Ensuring production equipment undergoes regular maintenance and calibration through proper inspections.
Countermeasures and records for handling defective products.
How does the E.U. RoHS Directive impose restrictions on toxic substances.
Item
Process control
Score ratio
15%
Score description
Implement production operations and conduct education and training.
Sorting and Rectifying Implementation Method.
Whether the work environment is adequate (lighting, space, temperature, pollution, etc.)?
Item
Development process
Score ratio
15%
Score description
Whether dedicated personnel are assigned to follow up on the progress of new product development and review countermeasures.
Whether graphics and technical information are archived and managed.
Whether dedicated personnel are assigned to be involved in new product development discussions.
Item
Delivery control
Score ratio
15%
Score description
Data on the production capacity of production equipment.
Production scheduling and progress tracking records.
Ability to meet order delivery dates.
Item
ESG Assessment
Score ratio
25%
Score description
Customer concentration.
Proportion of equity capital.
Continuity of ownership/management control.
Environmental care, energy saving, and carbon reduction.
Social responsibility participation.
ESG Assessment Standards
ESG Evaluation Indicators
Description of Indicators
ESG Evaluation Indicators
Customer concentration
Description of Indicators
It measures whether an enterprise’s operating revenue is overly dependent on a small number of customers and whether its customer base is diversified.
If most of an enterprise’s revenue comes from a small number of customers, it will face greater risks, such as the significant financial impact that could result from losing a single customer.
Enterprises should actively expand their customer base and reduce the risk of excessive dependence on a single customer.
ESG Evaluation Indicators
Proportion of equity capital
Description of Indicators
It assesses whether an enterprise’s capital structure is sound in order to avoid operating under excessive debt.
A high proportion of equity capital indicates a sound corporate financial position, strong risk tolerance, and resilience to external market fluctuations.
Enterprises shall ensure reasonable capital allocation and increase the proportion of equity capital to maintain stable long-term operations.
ESG Evaluation Indicators
Continuity of ownership / management control
Description of Indicators
It analyzes the long-term stability of an enterprise’s ownership and management team.
This includes whether the Company has a clear succession plan, a sound governance structure, and effective coordination between shareholders and management.
Stable ownership and prudent management contribute to an enterprise’s sustainable development and reduce the uncertainty caused by management changes.
ESG Evaluation Indicators
Environmental care, energy saving, and carbon reduction
Description of Indicators
It assesses an enterprise’s environmental protection initiatives, such as carbon reduction policies, sustainable production, resource recycling, and energy-saving measures.
It also considers compliance with environmental laws and regulations, as well as relevant certifications (such as ISO 14001 and ISO 14064-1).
Enterprises shall actively undertake environmental protection initiatives to reduce negative environmental impacts and improve their ESG ratings.
ESG Evaluation Indicators
Social responsibility participation
Description of Indicators
This includes whether an enterprise actively participates in social welfare activities, such as charitable donations, volunteering, and educational support.
It also covers whether employees are offered a friendly working environment, such as a reasonable salary, career development opportunities, and diversity and inclusion policies.
Enterprises should fulfill their social responsibilities by promoting social fairness and sustainable development to enhance their corporate image and social trust.
Supplier Code of Conduct
In addition to promoting ESG initiatives and sustainable operations to suppliers at the supplier meeting (detailed in the graph below) 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 have urged them to affix their signature. Starting from December 2023, suppliers are required to sign the “Supplier Code of Conduct” (details of the items and contents are as follows). In 2023, the target number of suppliers to sign the Code was 88, and the actual number was also 88, achieving a 100% success rate. By the end of 2024, suppliers representing 70% of the total transaction value had signed the Code. We have set a target of having all Rexon’s suppliers sign the Code by 2026. Through a shared understanding both within and outside the organization, and by upholding Rexon’s social and business responsibility standards, we work hand in hand toward a sustainable supply chain.
Code of Ethic
Ethical Corporate Management
No Improper Interests
Interllectual Property Right
Fair Trade
Identity Protection
Privacy Right
Conflict of Interest
Prohibition Againat Unauthorized Subcontracting
Compliance with Contractual Requirements
Anti-Corruption
Labor Rights
Freedom to Work
Prohibition of Child Labor
Work Time Compliance
Salary and Benefits
Humane Treatment
Non-discrimination
Freedom of Association
Code if Ethics
Occupational safety
Emergency Preparedness
Occupational Injuries
Inustrial Health
Machinery Protection
Public Hygiene
Helth and Safety
Natural Disaster Risks
Environmental protection
Environmental Permit and Compliance
Chemicals
Wastewater and Waste
Air Pollutiion Emissions
Water Resource
Energy Consumption and GHG Emissions
Management System
Company Commitment
Management Duties and Responsibilities
Leegal and Regulkatory Requirement
Risk Assessment and Management
Improvement Goals
Training
Communication
Review and Evaluation
Supplier Responsibilities
Rexon Technology will adopt the sustainable supply chain development model of its parent company, Rexon, to promote sustainable initiatives among suppliers. The company plans to establish the “Supplier Code of Conduct” by 2025 for external communication and formal agreements with suppliers. By the end of 2025, it expects that suppliers accounting for 60% of its transaction amount will have signed the Code.
Supplier Social Responsibility/Low-Carbon and Smart Upgrading and Transformation of the Manufacturing Industry under Big Leads Small
Rexon Industrial understands the importance of sustainability in satisfying the expectations of customers, the government, and internal and external stakeholders. As for the sustainable management of the supply chain, a comprehensive inspection and improvement should be carried out. Otherwise, the operating cost will increase or chain disruption may even occur. These may bring about an operating risk that may damage the Company and customer. Therefore, Rexon promoted sustainable supply chain issues through the supplier lean system in 2024. The Company invited 10 suppliers to participate in the Ministry of Economic Affairs’ “Low-Carbon and Smart Upgrading and Transformation of the Manufacturing Industry under Big Leads Small” project. This project jointly promotes the sustainable lean system, facilitates environmental protection and resource conservation, and realizes the integration of green development and smart manufacturing. The plan stages, description, and achievements are as follows :
Plan stages
Plan description
Plan implementation
Detailed description
Plan implementation
A. Sustainability Lean System
Detailed description
Through the three elements of the existing material value flow chart (material waste, environmental waste, and regulatory information), we conducted a current state analysis to identify opportunities to reduce the seven major green wastes (materials, water, energy, biodiversity, emissions, transportation, and garbage) within the organization (building) and in manufacturing processes.
Plan implementation
B. Upgrade of Low-Carbon Production Process Equipment
Detailed description
Evaluate the manufacturing processes in various areas of the current fitness equipment system :
High energy consumption during operation
Poor production efficiency
High-energy-consuming equipment that affects production efficiency due to operation or personnel inconvenience during production.
Key points of reduction planning:
Lower energy consumption during operation.
Enhanced production efficiency.
Improved efficiency due to ease of operation.
Plan implementation
C. Digital Low-Carbon Transformation Within the Factory Area
Detailed description
Subprojects have been implemented to promote low-carbon transformation within the factory area in areas of air compressors (pipe leakage detection and energy-saving inverter motors), energy management (real-time monitoring of equipment energy consumption and promotion of energy-saving strategies in the plant), and plant management (real-time collection of plant information and immediate feedback on equipment information). The goal is to improve the efficiency of air, energy, and management, while reducing emissions.
Achievements of the plan as of October 2025
Item
Description of benefits
Reduction in carbon emissions
8.58% carbon reduction. The overall Scope 1 and Scope 2 emissions were reduced from 16,896 metric tons to 15,446 metric tons.
Decrease in power consumption
8.58% power saving rate. The overall electricity consumption was reduced from 34,133 kWh to 31,199 kWh.
Concrete actions :
Most of Rexon’s suppliers are unfamiliar with the concept of social responsibility commitments of suppliers. We communicate with them through the supplier conference and electronic trading platform to let them understand the meaning and necessity of social responsibility. We also guide them to recognize that, besides the government regulations they must strictly comply with, they also bear responsibilities toward the environment, human rights, and business ethics, both to internal employees and external stakeholders. By signing the “Supplier Code of Conduct,” we remind suppliers to fulfill their commitments and make improvements.
In terms of efforts in energy conservation and carbon reduction, Rexon has taken the initiative to lead in the same way as the “Big Leads Small” model. We have cooperated with government subsidy projects to invite suppliers to improve equipment performance and production efficiency, thereby achieving specific low-carbon outcomes. We aim to set an example for the entire supply chain, working together towards ESG goals, promoting industry upgrades, and enhancing competitiveness.
Management highlights
Execution unit
Number of executions
Description of the matter
Management highlights
Supplier Social Responsibility
Execution unit
Procurement Division 1 and Procurement Division 2
Number of executions
Management review meetings are held once a year. First, the e-commerce platform manufacturers of the Rexon supply chain, occupying more than 80% of our total transaction volume, conduct the self-evaluation.
Description of the matter
Refer to local regulations, RBA Code of Conduct, customer requirements, and Design Supplier Risk Self-Evaluation Form, mainly including ethics, labor rights, health and safety, environmental protection, and management system.
Management highlights
Low-Carbon and Smart Upgrading and Transformation of the Manufacturing Industry under Big Leads Small
Execution unit
Procurement Division 1, Procurement Division 2, and R-Team Project members
Number of executions
Monthly sustainable supply chain seminar
Description of the matter
Under the central strategic initiative, Rexon Industrial acts as the central plant (the highest guiding unit) to assist the satellite plants and supplier partners in jointly facilitating and implementing the ESG corporate sustainability strategy. Main directions of the strategy :
Reduce the seven major green wastes through sustainability lean practices;
Improve the low-carbon manufacturing process;
Promote the strategic initiatives such as smart low-carbon system management.
Product Quality and Responsibility (Material Topic)
In order to implement the quality policy, the Company focuses on source management to ensure zero defects in quality, respond rapidly to market demand, and meet customer expectations. Through continuous optimization of the quality management process and structure (such as ISO 9001) and a quality competition mechanism, Rexon consistently introduces refined organizations and processes to improve service quality, with the ultimate goal of achieving exceptional customer satisfaction.
PRODUCT
HEALTH AND SAFETY
Product health and safety _
Material Topics
Product health and safety
Description of positive benefits
Actual positive : Product health and safety are one of the core management items. A risk prevention mindset is introduced at the design stage to ensure quality control throughout the entire process. By strictly adhering to relevant health and safety standards, we ensure the safe use of our products by consumers. This effectively enhances the credibility of our brand and OEM services, further strengthening customer partnerships and our market reputation.
Description of negative benefits
Potential negative : Deficiencies in product safety pose various risks, including reduced production efficiency, lower customer satisfaction, processing costs of recalls, returns, and reworks. These issues may further result in reputation losses and operational risks, challenging the company’s overall competitiveness and sustainable development.
Management mechanisms / measures
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.
Internal issue : If the production line is affected by quality issues, the Andon system and emergency response mechanisms will be activated immediately. Meetings will be held to investigate the issue and discuss countermeasures to resolve the problem as quickly as possible.
Market issue : When customers report safety and quality concerns, the customer complaint handling personnel will, within 24 hours, initiate an abnormal handling procedure, identify and isolate potentially affected batches, and implement temporary countermeasures. A risk report will be submitted to management and concurrently communicated to the customer.
Continuous improvement : For the customer complaints that have occurred, we have established quality control cases and tasked Process Quality Control (PQC) personnel with performing audits and reviews to prevent recurrence. We have also put in place a comprehensive survey and control mechanism for similar issues and implemented an investigation and audits as planned to prevent problems from occurring in other models.
Complaint / communication channels
Responsible Department: Customer Service Division.
Material quality issues, emergency responses, and risk assessment management mechanisms have been incorporated into the customer complaint procedures. These issues will be reported to the President to enhance the timeliness of addressing customer complaints
The quality scores of suppliers are calculated monthly on a monthly basis to generate supplier evaluation data. D-rank suppliers are required to submit monthly PDCA improvement reports and undergo quality audits conducted by SQE
The Company has organized a quality competition and formed a project task force to evaluate each unit’s quality score monthly. Awards are presented at monthly meetings to share quality improvement experiences.
Implementation results
In 2024, there were 0 major quality customer complaints for Rexon’s top 10 models
After the establishment of the supplier evaluation mechanism, a total of 7 D-rank suppliers were identified in 2024. Following guidance and counseling, the quality of all 7 suppliers improved and they all successfully passed the evaluation.
Following the implementation of the quality competition in 2024, the overall quality awareness across the company has greatly improved. The amount of scrap due to quality issues has decreased by about 50% compared to the level in 2023, prior to the competition's introduction.
Achievement status of 2024 goals
Goals
In 2024, there were zero cases of customer health or safety incidents resulting from our products
Customer complaint cases related to the safety of the Group’s top 10 products were less than 3.
Achievement status
Achievement goal :
In 2024, there were no reported incidents of customer health or safety incidents resulting from our products.
There were 0 customer complaint cases related to the safety of the Group’s top 10 products.
Short / Medium / Long-term Goals
Short-term Goals(2025-2026)
There were 0 customer complaint cases related to the safety of the Group’s products
Regarding the timely handling of major customer complaints, a risk report, including countermeasures, is submitted within 24 hours.
The QMS platform, which functions as a supplier quality management system, has been established to improve the transparency and traceability in the supply chain
Medium-term and Long-term Goals(2027~2031)
Quality improvement through source management: A supplier grading system and management mechanism have been established to select suppliers of appropriate grades based on product positioning.
The Quality Management System (QMS) is fully implemented not only among suppliers but also across Rexon’s plants and all subsidiaries.
Sustainable action: Promotion of sustainable design andlow-carbon supply chain
From product design, procurement of raw materials, manufacturing to marketing and service, Rexon Industrial integrates sustainability thoughts in the entire process to ensure that materials and processes comply with environmental requirements. The Company is dedicated to complying with international regulations. Our products meet the requirements of RoHS, REACH, the Packaging Directive, the Battery Directive, and the Halogen-Free (HF) standard. All products have passed the international/national/customer standard tests and received certificates. All of the products meet the safety specifications to ensure that the materials used do not affect the health of the consumer. In 2024, suppliers of all product models are required to provide RoHS and REACH policies during the pilot production stage. In the current year, RoHS test reports for 159 components from all models were thoroughly examined, and all suppliers conducted inspections in accordance with the management specifications. The products made by Rexon are free of harmful substances, thereby reducing their environmental and ecological impact and ensuring consumers can use them in a healthy manner, free from worry.
MATERIAL SOURCE
QUALITY CONTROL
Control of Material Quality _
To adapt to the market trends emphasizing consumer orientation and shortened sales channels, Rexon has introduced a QMS system for suppliers and implemented thorough source management. We timely adjust our quality policies in response to market demands and consumer feedback to react swiftly and meet consumer needs. In order to exceed customer expectations, Rexon continuously improves current operating procedures, enhances process capabilities, and consistently monitors the quality of incoming materials from suppliers. For this reason, the Company has established a comprehensive supplier counseling and source control mechanism to ensure that all aspects of the supply chain meet stringent quality standards.
To enhance supplier quality management, Rexon has established a Quality Management System (QMS) aimed at improving supplier quality control and ensuring that all raw materials and spare parts provided by the suppliers meet the Company’s quality standards, thereby securing product quality at the source.
The Quality Assurance department compiles the scores on a monthly basis for each supplier and provides guidance and audits for underperforming suppliers.
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 and in-depth interviews 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. A total of 7 D-rank suppliers were identified in 2024. Following guidance and counseling, the quality of all 7 suppliers improved and they have since successfully passed the evaluation.
PRODUCT
SAFETY
Product Safety _
Amid the global trend of placing greater emphasis on product safety, governments around the world have enacted and refined relevant regulations to ensure the quality and safety of imported products. We deeply recognize that safety and quality are fundamental to our products. Therefore, we adhere to the principle of “safety first,” strictly comply with regulatory requirements of different countries, and successfully pass audits by various international certification agencies to obtain necessary certifications, thereby ensuring that our products comply with local safety standards.
Power tool
The Company’s power tool products are sold globally and fully comply with international standards for environmental protection and user safety. All materials used are non-hazardous to human health and are certified under various environmental management systems and product safety certifications. In addition, the products are certified in accordance with local regulatory requirements in different sales markets to ensure the full compliance with quality, environmental protection, and legal standards. (Please refer to the attachment for further details.) (Tool Certification - TS, Power Tool Product Certification - CSA , Power Tool Verification Certification - BSMI)
Rexon Technology’s main electronic products include self-owned brands, OEM products, and their key components. All processes, from design and development to production, strictly adhere to relevant regulatory requirements and technical specifications to ensure product safety and reliability at the source. We are committed to providing high-quality electronic products that meet the needs of the global market, so consumers can use them with confidence, while continuously fostering the upgrade and innovation of the safety standards in the electronics industry.
Compliance with Standards and Certifications (Verification)
Product Category
Woodworking machine
Compliance with Standards and Certifications (Verification)
Tool Certification - TS, Power Tool Verification Certification - BSMI, Power Tool Product Certification - CSA
Product Category
Wireless transceiver
Compliance with Standards and Certifications (Verification)
U.S. FCC Safety Certification, E.U. CE Safety Standards, ETSI Certification, etc.
Product Liability Insurance Coverage
Rexon has established a comprehensive evaluation and prevention mechanism. In addition to risk and crisis management, we have also secured product liability insurance to cover possible damages caused by product use, including harm to employees, customers, equipment, parts, and components, facilities, and third parties. To date, there have been no compensation claims related to the Company’s products. This reflects the Company’s strong performance in personnel operation management, product quality control, and facility planning, underscoring its firm commitment to product safety and stakeholder protection.
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, 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.
Product Labeling
We uphold the concept of protecting consumer rights and are committed to ensuring that consumers receive complete and accurate information when purchasing and using our products to protect their safety and reduce the risks during installation, operation, or maintenance. For this reason, the Company strictly complies with local safety regulations, clearly outlines the correct procedures for installation, adjustment, operation and maintenance in its product manuals, and provides relevant safety warnings. In addition, the product itself bears a specification label, usage instructions, and warning labels to ensure that consumers have sufficient information on safe use.
In order to comply with the latest regulations, the Company has assigned dedicated personnel to keep abreast of the latest regulations and promptly update product labels to meet both customer needs and regulatory changes. At the same time, the Company actively cooperates with the sampling inspections conducted by the Bureau of Standards, Metrology and Inspection, under the Ministry of Economic Affairs, to ensure product label accuracy and compliance, and to continuously improve product safety and regulatory adherence.
Hedge Trimmer Product Safety and Usage Label Illustration
Lawnmower Product Safety and Usage Label Illustration
Grooving Machine Product Safety and Usage Label Illustration
Risk Identification and Management for Use of Products
The Company conducts random inspections in accordance with the quality management requirements of the “Regulations for Shipment and Return Inspections of Finished (Purchased) Products” to ensure the safety and reliability of products at the time of shipment. To comply with regulatory requirements, protect consumer rights, and prevent legal disputes due to product safety issues, we have established a product recall mechanism aligned with both local and international standards. In the event of a product issue, the 3R handling team will submit a 3R risk assessment report within 24 hours, including a description of the issue, risk determination, identification and isolation of potentially affected batches, and an estimate of potential losses. The team will then implement emergency measures to minimize product risks and enhance customer and consumer satisfaction with products.
Information on Hazardous Substances in Products
To protect consumer health and promote environmental sustainability, the Company abides by government the Restriction of the use of Hazardous Substance and includes the “Product Restricted Substances Marking Table” (as shown in the figure) in the product manual. The hazardous substances that may be present in products, along with the standards governing their use, are clearly specified to ensure that the product's design and manufacturing process comply with the control requirements of applicable laws and regulations.
Risk Identification and Management for Use of Products
In the modern manufacturing environment, control of hazardous substances is critical essential for enterprises—not only to comply with increasingly strict regulations, but also to protect the environment and consumer health. The Company has established a comprehensive hazardous substance management mechanism in accordance with the PDCA cycle. This management approach covers regulatory identification and implementation, new part validation, and raw material testing to ensure that our products meet standards and are safe and reliable.
Item
Specific Actions in 2024
Item
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 2024
To reduce the risk of violations, avoid fines due to violations, product recalls, or damage to brand reputation, as well as to reduce the use of harmful substances, mitigate environmental and ecological impacts, ensure product safety, and reduce potential risks to consumer health, both RoHS and REACH were implementation in 2024. Suppliers are required to provide necessary information during trial production stage.
Item
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 2024
During the new part validation stage, Rexon Industrial reviewed 2,065 new parts to ensure they complied with the relevant regulations and did not violate any laws and regulations. This demonstrates Rexon Industrial’s consistent compliance and quality standards during the introduction of new parts.
Item
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 2024
During the inventory process in 2024, RoHS testing reports for Rexon Industrial’s 5 mass-produced models and 159 component suppliers were provided, ensuring that the use of relevant raw materials complies with the requirements of hazardous substances laws.
Item
With regard to the management, the QA unit conducts the review of the hazardous substance operation status.
Specific Actions in 2024
No incompliance with hazardous substance regulations was identified during the supplier audit. We ensure that suppliers strictly implement and adhere to third-party testing procedures
The Company persists in its commitment to 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.
