(Yicai Global) Feb. 17 -- About 70 percent of companies in China can maintain cash flow for more than three months, according to a report released today by the University of International Business and Economics.

The report recommends that companies make good use of government relief efforts to cut costs and broaden the sources of finance, and encourages them to open up online business channels, re-examine their business models, and better integrate with smart and interconnected technologies.

Of the companies surveyed, 69 percent had cash flow for more than three months and 44 percent can sustain it for more than half a year. This shows that most are still able to survive the novel coronavirus outbreak. But if the epidemic is not effectively contained within three months, there will be a risk of bankruptcy for some, the report added.

Data show that online-based businesses have an advantage in maintaining their funds. Among firms operating offline, about 68 percent had cash flow for more than three months, compared with 73 percent for companies that operate mainly online.

Cash flow at state-owned and foreign-funded enterprises is relatively plentiful, with 82 percent and 79 percent, respectively, able to endure for longer than three months. More than half of SOEs can maintain cash flow for over a year, while the duration for private companies is relatively short. About 41 percent of private firms don't have enough cash for three months. So the negative impact of the virus outbreak is greater on private firms than on others.

The outbreak also has led to higher costs for businesses. The proportion whose costs rose by more than 10 percent reached 43 percent. About 17 percent of firms experienced a 50 percent gain in costs and 3.6 percent faced a doubling of costs.

The companies interviewed were generally pessimistic on revenue expectations for the first quarter. Just 15.5 percent expected revenue to increase or remain the same as in the year-earlier period. Of the 84.5 percent who expected revenue to fall, about a third thought the decline would be more than half.

A total of 761 companies took part in the survey, with 53 percent private firms and 27 percent SOEs. Listed companies accounted for almost 40 percent of the total.

Editor: Peter Thomas