Can Factory Reset delete a virus?
If the app has installed itself as a system app, then no, factory reset will not remove it. It will just wipe it's data, but it will start installing again, after you boot your phone up.

You will need to flash your device with a stock firmware file, which does not have the virus installed.

You can follow this tutorial:

http://forum.xda-developers.com/android/general/tutorial-how-to-flash-lenovo-a536-stock-t3300818