Yum China and BYD say China’s COVID restrictions impacted operations

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SHANGHAI, March 15 (Reuters) – Chinese companies from automaker BYD (002594.SZ) to KFC operator Yum China (9987.HK) say their operations have already been hit by the country’s latest COVID-19 restrictions, with more disruption expected as the case may be the numbers increase.

The impact on business comes as China battles its worst outbreak since the coronavirus pandemic began in early 2020. It recorded a sharp rise in daily COVID infections on Tuesday, with new cases more than doubling, dropping from a day earlier to a two-year high. . Read more

Yum, the operator of KFC and Pizza Hut restaurants in China, said in a regular earnings briefing late Monday that its operations had been significantly impacted by the latest outbreaks and same-store sales had fallen 20%. year-over-year to the first two weeks of March.

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BYD, headquartered in Shenzhen, where most companies have been told to ask staff to work from home, said there has been some impact on production at its site in the city.

“We are actively coordinating a response and carrying out epidemic prevention and control as required by the government,” the company said.

Many provinces and cities across the country have carried out mass testing, with some shutting down public transportation and cordoning off apartment buildings and office buildings.

Other companies that reported disruptions include Chinese flash storage company Netac Technology (300042.SZ). He said some shipments would be delayed as he had to suspend work at his factory in Shenzhen. Meanwhile, Apple’s (AAPL.O) supplier Lens Technology said its Dongguan city unit had halted production.

iPhone assembler Foxconn (2317.TW), Toyota (7203.T) and Volkswagen (VOWG_p.DE) also said on Monday they had to close factories. Read more

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Reporting by Brenda Goh; Editing by Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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