Red Star Macalline Group, one of China’s largest furniture and home furnishing mall chains, said it would waive rent and management fee charges for a month to help tenants amid the coronavirus outbreak.
The move, proposed by billionaire chairman Che Jianxing, covers 82 malls across the country and will reduce the company’s projected net profit in 2020 by up to 430 million yuan, or $61 million, equivalent to 9.6% of its full-year earnings, Red Star said in a statement on Sunday.
Click here for the full statement.
Red Star’s shares trade in Hong Kong and Shanghai.
China’s coronavirus outbreak has left more than 300 dead and 14,000 infected as of this weekend. Some tens of millions of Chinese in central China’s Hubei Province are trapped in one of the world’s largest-ever quarantine lockdowns, which is aimed at containing the spread of the virus. Foreign governments have been airlifting nationals from Hubei capital’s Wuhan on charter flights to escape exposure. United, Delta and American Airlines are halting mainland flights, and the World Health Organization on Jan. 30 declared the outbreak a public health emergency of international concern. Public concern about the spread of the disease has led to retail chain closures by McDonalds, Starbucks and others (see related story here).
Domestic and multinational businesses in China have been making charitable donations to help buffer damage from the outbreak.
–Follow me @rflannerychina