OTHERS INDUSTRONICS BERHAD (ITRONIC OR THE COMPANY) – MEMORANDUM OF UNDERSTANDING (“MOU”) WITH BLUEMOUNT FINANCIAL GROUP LIMITED AND MR. LI HOK YIN

1.   INTRODUCTION

Pursuant to Chapter 9.29 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of ITRONIC wishes to announce that ITRONIC had entered into a non-binding Memorandum of Understanding (“MOU”) with Bluemount Financial Group Limited (“BLUEMOUNT”) and Mr. Li Hok Yin (“LHY”) on 23 March 2021 to further discuss and/or negotiate on the terms and conditions with regards to the proposed acquisition of shares in Bluemount for the purpose of venturing into the financial services industry, specifically exploring into the fintech industry.

2.DETAILS OF THE MOU

2.1 Information of ITRONIC

ITRONIC was incorporated in Malaysia on 18 July 1975 and is principally engaged in the business of investment holding. The current issued share capital of ITRONIC is MYR8,574,905.00 divided into 166,752,574 ordinary shares.

2.2 Information of the BLUEMOUNT

BLUEMOUNT was incorporated in Hong Kong on 2016 and is principally engaged in the business of financial services. The current issued share capital of BLUEMOUNT is HKD23,010,300.00.  BLUEMOUNT recorded a profit of HKD3,294,411.23 on the back of HKD15,839,000 revenue in its latest audited Financial Statements for the year ended 31 March 2020.

The Directors of BLUEMOUNT are :

1. Li Hok Yin
2. Li Hok Lai

The Shareholders of BLUEMOUNT are:

1. Echo International Holdings Group Limited
2. Li Hok Yin
3. Pan Jiye
4. Yan Ka Him
5. Zhou Qilin

2.3 Information of the LHY

LHY, holder of passport no.: KJ0411847, is a citizen of Hong Kong SAR.

3.FINANCIAL EFFECTS OF THE MOU

The MOU will not have any effect on the share capital, shareholdings of major shareholders (where relevant), net assets per share and gearing of ITRONIC Group. It will also not have any material effect on earnings per share of the Group.

The effects of the collaboration will only be determined upon the finalisation of terms of any collaboration agreement(s). Should any collaboration agreement materializes, it is expected to contribute positively to the future earnings of the Group.

4.RISK FACTORS

The Board of Directors of ITRONIC wishes to inform that there is no certainty that the MOU will result in the signing of a definitive collaboration agreement, and that further details of the MOU will be announced once a definitive collaboration agreement has been entered into.

5.INTEREST OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND CONNECTED PERSONS

None of the directors and/or major shareholders of ITRONIC as well as persons connected with them has any interest, direct and/or indirect in the MOU.

6.STATEMENT OF THE DIRECTORS

The Board of Directors of the Company is in the opinion that the MOU is in the best interest of the Company and its shareholders.

7.OTHER MATTERS

7.1 Validity of the MOU

This MOU shall be valid and remain in effect for a period of one(1) year from the date of the MOU.

This announcement is dated 23 March 2021.