SAIC signals outlook clouded by coronavirus

SAIC Motor Corp., the biggest automaker in China, signaled the coronavirus outbreak is set to hit its profitability for months to come after earnings slumped in the first quarter of the year.

There will be “major changes” in net income through June, with the virus pandemic being the main risk for the Chinese automobile industry, SAIC said in a filing yesterday, without elaborating. First-quarter net income at the partner of Volkswagen AG and General Motors Co. plunged 82 percent to 1.12 billion yuan (US$158 million) as revenue fell 48 percent.

Gemdale reverses move to lower coupon rate

DEVELOPER Gemdale Corp. yesterday reversed a surprise decision to lower the coupon rate on a three-year bond following a backlash from investors and apologized for causing disquiet in the markets.

The company’s decision last week to cut coupon payments on the debt by more than 70 percent angered investors and prompted the Shanghai Stock Exchange to demand an explanation. The developer said yesterday that it would keep the coupon on a 1 billion yuan May 2021 bond unchanged at 5.29 percent.

Yili sees biggest quarterly profit drop since 2008

DAIRY maker Inner Mongolia Yili Industrial Group Co. posted its largest quarterly profit drop since 2008 as the virus-triggered shutdown hurt sales but didn’t reduce underlying business costs.

Net income for the first quarter plunged 50 percent to 1.14 billion yuan while sales fell 11 percent to 20.5 billion yuan, the company said Tuesday.

Starbucks expects recovery by September

STARBUCKS Corp. said Tuesday it sees sales in China, the company’s biggest growth market, recovering by the end of September.

Starbucks has opened almost all its locations in China, but still sees the lingering impact of the pandemic trimming same-store sales there by 15 percent to 25 percent this fiscal year.

Pinduoduo alerts police to suspected bribery

E-COMMERCE firm Pinduoduo Inc. has referred a case of suspected bribery of one of its staff by a manager at digital advertising firm Cue Holdings to the Shanghai police, Reuters quoted sources as saying yesterday.

Pinduoduo suspects a Cue sales manager bribed a Pinduoduo manager to win work related to a 4 billion yuan advertising budget last year, one of the sources said. The bribe totaled over 2 million yuan, the sources said.