ORIENTAL YUHONG(SZ:002271) Xin Lang Cai Jing·2025-12-24 12:05Core Viewpoint - Oriental Yuhong, a leading waterproofing company in A-shares, has reported that its wholly-owned subsidiary in the U.S., OYH Construction Materials LLC, has fallen victim to a telecom fraud involving approximately $1.7183 million, equivalent to about 12.118 million RMB [1][2][4]. Financial Impact - The fraud amount represents about 1.5% of Oriental Yuhong's net profit attributable to shareholders for the first three quarters of this year [2]. - In 2024, the company recorded a net profit of 108 million RMB, a significant decrease of 95.24%, marking the lowest level since 2012 [4][18]. Company Response - Oriental Yuhong has stated that the incident is an isolated occurrence and will not significantly impact normal operations [4][18]. - The company has reported the incident to the FBI and has established a special task force to investigate and manage the aftermath [7][21]. Fraud Details - The fraud occurred during a payment process for construction progress, where criminals impersonated the general contractor through email system intrusion [8][21]. - The subsidiary involved, OYH Construction Materials LLC, was registered on March 2, 2024, and is located in Houston, Texas [21]. Broader Context - The incident is part of a growing trend where multiple A-share listed companies have reported telecom fraud, particularly involving overseas subsidiaries [13][25]. - Other companies, such as Haiprui and Daya Shengxiang, have also faced significant fraud cases, highlighting the increasing security risks associated with cross-border operations and digital systems [26][27].