PN17-listed Industronics Bhd has lodged a police report and removed former executive director Liu Wing Yee Amy from all positions within the group after discovering more than HK$96 million in trade receivables concentrated among a small number of customers at its Hong Kong subsidiary, ECGO International Ltd.
In a filing with Bursa Malaysia, Industronics said it will conduct a detailed forensic review of past transactions, fund flows, banking records and receivables to establish the facts, assess potential recovery and determine the necessary legal, regulatory and governance actions.
The company said the transactions, recoverability of the receivables and any potential impairment or recovery remain subject to further verification and review.
Liu had resigned as an executive director on Sept 19, 2024, according to Industronics’ latest annual report.
ECGO is the group’s only active Hong Kong subsidiary. Its main activities include watch trading and cloud computing services. ECGO contributed HK$73.11 million, or RM39.65 million, to the group’s revenue in the financial year ended Dec 31, 2025 (FY2025), down from HK$91.06 million a year earlier due mainly to weaker watch sales.
Industronics has since stopped its main business activities and watch trading operations in Hong Kong. The group reported zero revenue in its latest quarterly results for the first quarter ended March 31, 2026.
The company said it is still too early to determine the financial impact of the issue or how much of the receivables can be recovered. It also stressed that no conclusion has been made that any individual had committed an offence or wrongdoing.
The latest development adds to Industronics’ financial challenges. 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 the group’s inventories, trade and other receivables, revenue and cost of sales, citing gaps in documentation, an incomplete audit scope and limited access to financial information.
It also said Industronics’ ability to continue as a going concern depends on the successful execution of new ventures and financial support from related parties.
Separately, substantial shareholder Bluemount Investment Fund has filed a lawsuit against Industronics and certain directors or officers, seeking up to US$5.152 million.
Industronics said on Wednesday that it had borrowed US$4.6 million from Bluemount in March 2025 for 36 months at an annual interest rate of 12%. The funds were mainly intended 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 holds a 6.789% stake in Industronics.
Industronics shares were unchanged at three sen on Wednesday, giving the company a market capitalisation of RM21.2 million
