KUALA LUMPUR (Aug 12): Industronics Bhd (KL:ITRONIC) has lodged a police report and removed former executive director Liu Wing Yee Amy from all positions in the group after identifying more than HK$96 million in trade receivables concentrated among a small number of customers at its Hong Kong subsidiary, ECGO International Ltd.
According to a filing with Bursa Malaysia, the company said beyond the police investigation the company will conduct a comprehensive forensic review of past transactions, fund flows, banking records and receivables to establish the facts, assess potential recovery and determine the appropriate legal, regulatory and governance actions.
The underlying transactions, recoverability of the receivables and any appropriate impairment or recovery action remain subject to verification and further review.
Liu resigned as an executive director on Sept 19, 2024, according to the company’s latest annual report.
ECGO is Industronics’ only active Hong Kong subsidiary. According to its 2025 annual report, the company trades watches and provides cloud computing services, contributing HK$73.11 million (RM39.65 million) to the group in the financial year ended Dec 31, 2025 (FY2025), down from HK$91.06 million in FY2024 due mainly to weaker watch sales.
Industronics has since ceased its principal business activities and watch trading business in Hong Kong, reporting zero revenue in the latest quarterly results for the first quarter ended March 31, 2026.
Industronics said it is too early to determine the financial impact or how much of the receivables can be recovered. It also stressed that no conclusion has been reached that any individual committed an offence or wrongdoing.
The latest development adds to Industronics’ financial troubles. The company was recently classified as a Practice Note 17 (PN17) company after its auditor, UHY Malaysia PLT, issued a disclaimer of opinion on its FY2025 financial statements.
The auditor raised concerns over inventories, trade and other receivables, revenue and cost of sales, citing documentation gaps, an incomplete audit scope and limited access to financial information. It also said Industronics’ ability to continue as a going concern depends on successfully executing new ventures and securing financial support from related parties.
Separately, substantial shareholder Bluemount Investment Fund has sued the company and certain directors or officers for up to US$5.152 million.
Industronics disclosed on Wednesday that it had borrowed US$4.6 million from Bluemount in March 2025 for 36 months at 12% annual interest, mainly for a proposed pre-initial public offering investment in AMES Hotel or other agreed investments.
Bluemount is seeking repayment of the loan and accrued interest. Industronics said it does not admit to any breach or default, and no liability has been determined by the court.
Bluemount owns a 6.789% interest in Industronics.
Industronics’ shares were unchanged on Wednesday, trading at three sen, valuing the company at RM21.2 million.