KUALA LUMPUR (Aug 10): Industronics Bhd (KL:ITRONIC) is being sued by one of its substantial shareholders over a loan agreement involving the company and certain directors or officers.

The writ of summons filed by Bluemount Investment Fund and served to Industronics did not come with a statement of claim, the company said in an exchange filing. The potential exposure presently identified is up to US$5.15 million (RM21.1 million) as the principal sum and accrued interest, the company noted.

“The company is presently assessing the full basis and particulars of the suit with its legal advisers,” Industronics said.

Bluemount holds a 6.51% stake in Industronics, making it the fourth-largest substantial shareholder, according to Bloomberg data. Datuk Yong Chong Cheang is the largest shareholder with an 8.2% stake held through his private vehicle Hexatech Energy Consolidated Sdn Bhd.

The legal action adds another development to what has been a turbulent year for Industronics, which entered Practice Note 17 status in May after its external auditor issued a disclaimer of opinion on its audited financial statements for the 15-month period ended Dec 31, 2025 (FY2025).

External auditor UHY Malaysia PLT had raised issues involving the group’s inventories, trade and other receivables, as well as its ability to substantiate revenue and cost of sales for the period. Industronics is required to submit a regularisation plan to Bursa Malaysia.

For now, the suit by Bluemont is not expected to have any material impact on the day-to-day business operations of the group.

“The company has appointed legal counsel to advise on and defend the suit, and will take such steps as may be necessary to protect the interests of the company,” Industronics added.

Industronics — which manufactures and installs electronics, security systems, and public display networks — has been loss-making since FY2024. For FY2025, it reported a net loss of RM10.6 million on revenue of RM40.52 million.