The city government of Shangqiu, Henan province, has sent a working group to investigate a bus company and help it to resume operations.

The company promised on Thursday to resume normal service, after announcing it would suspend bus operation on March 1 because of severe financial losses.

The accumulated impact of COVID-19, adjustments of support for new energy vehicles and lagging financial subsidies had resulted in an inability to pay salaries and insurance for employees in a timely manner, so it was forced to end service, it said.

The city government took corrective steps. A working group was sent to investigate and help the company overcome its difficulties so that bus service can resume for residents.

The bus company — Shangqiu Public Transport Co, a private enterprise restructured in 2006 to provide service for the city — then retracted its previous announcement, promising normal bus service for residents. It apologized for the impact of its previous announcement.

Wang Songsong contributed to this story.