Jiin Ming Industrial Co., a Taoyuan-based drone maker listed on the Taiwan Stock Exchange, said Monday it suspended two senior supply-chain executives while an internal task force checks whether components sourced outside Taiwan entered a military logistics contract lot.
The company told the exchange that a whistle-blower flagged mismatched serial numbers on radio modules used in multirotor frames bound for a defense ministry logistics trial. Jiin Ming said it has not received a formal indictment and that production for commercial agriculture clients continues on separate lines.
What the company disclosed
According to the filing, the suspended executives oversaw vendor qualification and incoming inspection. External auditors hired last week will compare purchase orders with customs entries for the affected batch. Jiin Ming pledged to report findings within thirty days or sooner if regulators request an interim briefing.
Market reaction
Shares fell the daily limit in early trade before moderating after the company said the disputed batch represents less than 2 percent of this year’s revenue. Peer drone makers rose on speculation that ministries will accelerate audits, which could favor vendors with domestic printed-circuit-board lines.
The Industrial Development Administration urged suppliers to document country-of-origin labels after U.S. and European customers tightened rules on Chinese content in dual-use goods. Jiin Ming said it will publish a supplier map once the review ends.
Next steps
Prosecutors in New Taipei have opened a preliminary inquiry, according to a brief statement carried by local media citing an unnamed official. Jiin Ming asked investors to rely on exchange filings rather than social-media rumors showing blurred customs documents.
Supply-chain audits
Two contract manufacturers that assemble carbon frames for Jiin Ming said they received questionnaires asking for bill-of-materials attestations down to capacitor country codes. Industry groups expect similar audits across aerospace suppliers after ministries updated defense procurement FAQs in September.
Jiin Ming’s commercial agriculture clients asked for letters confirming that civilian SKUs are unaffected, hoping to avoid shipment holds during harvest season.
Export controls context
Taiwan’s trade rules require exporters to screen dual-use items even when the buyer is a domestic ministry, because resale clauses can push hardware overseas. Jiin Ming’s filing noted that the disputed radios were labeled for civilian frequency bands but carried firmware slots reserved for military encryption modules, a mismatch that triggered the whistle-blower report.
Securities lawyers said the exchange may ask for an independent committee if the inquiry lasts beyond thirty days, a step that could delay a planned private placement aimed at funding a new Taoyuan test field.