(Yicai Global) Feb. 4 -- China's stock market plunged more than 7 percent yesterday, the first trading day after the Lunar New Year holiday, as a result of the novel coronavirus outbreak. Today, a number of companies issued statements in response to the epidemic, with some saying that first-quarter results will inevitably be affected. However, they were confident of minimizing the potential damaging impact.

Chinese tech giant Lenovo, whose largest factory is in Wuhan, the central Hubei province capital which is the epicenter of the epidemic, said that the delayed resumption of plant operation and the outbreak will inevitably lead to a short-term production lag, the National Business Daily reported today. The Beijing-based company, is, however, confident that it can meet the challenges and minimize the potential impact of the epidemic on consumers with the help of its worldwide manufacturing and sales network.

Visionox Technology, a Jiangsu province-based organic light emitting diode products supplier, said that it had maintained production during the New Year holiday, and the current raw material inventory can meet its current production needs. The company is also coordinating with suppliers and adjusting production strategies to ensure the supply of raw materials and the operation of production lines to cope with potential raw material shortage due to the outbreak. The epidemic will not have a significant impact on the company's production and operation, it added.

Meanwhile, BOE Technology Group's production line in Wuhan, which has been in a lockdown, is a new one, and will not have much of an impact on the company's overall operating performance, a staff at the securities division of China's leading panel firm told Yicai Global. Production and operation of the Beijing-based company's plants in other cities are normal, he said.

New Hope Group, a Chinese conglomerate, said in a statement that due to the epidemic some of its factories have delayed resumption of operation while traffic control in some areas has affected the normal flow and transportation of staff, raw materials and products. More than 90 percent of the company's domestic feed plants have resumed operation, with the remaining expected to re-open before February 10.

Similarly, Beijing-based Utour Group said that the suspension of its group tour and the 'air ticket plus hotel' tourism products since January 27 will inevitably impact the company's first-quarter results. But various factors, including post-epidemic recovery in the tourism market, the company's accelerated distribution in lower-tier markets and expanded businesses like study tours and immigration, will have a positive impact on its full-year performance, the company noted in a statement.

Editor: Peter Thomas