Oriental Yuhong subsidiary loses $1.7m in cyber scam

OYH Construction Materials LLC, a wholly-owned U.S. subsidiary of Beijing Oriental Yuhong Waterproof Technology, recently reported a telecom scam involving approximately $1.7183 million. The fraud occurred when criminals infiltrated the subsidiary's email system, impersonating a general contractor to illicitly obtain construction progress payments.

Upon discovering the scam, OYH Construction Materials LLC promptly reported the incident to the Harris County Sheriff's Office, Woodstock Police Department, and the FBI (Houston), and is cooperating with authorities to mitigate losses.

The company's preliminary investigation suggests this is an isolated incident with no material impact on its normal operations. A special task force has been formed to investigate, address the aftermath, and manage risks. As the investigation is ongoing, the outcome remains uncertain.

Beijing Oriental Yuhong's management is reinforcing internal controls, especially for overseas subsidiaries' payment approval processes and cybersecurity, to identify and rectify potential risks. The company emphasizes its commitment to assisting law enforcement, recovering losses, and fulfilling disclosure obligations, cautioning investors to monitor related announcements.