BYD Electronics Enters E-Cigarette Manufacturing as Licensed Producer

There are many examples of car companies deviating from their main business, such as BYD, the leader in the field of new energy, occasionally creating some unexpected things.

BYD Electronics announced on their official social media account that their wholly-owned subsidiary, BYD Precision Manufacturing Co., Ltd., has been awarded the "Production Enterprise License for Tobacco Monopoly (e-cigarette OEM companies)" by the National Tobacco Monopoly Bureau.

This also means that BYD Electronic will officially enter the competition in the electronic cigarette manufacturing industry with legal status, and the current absolute market leader, Smoore International, will face its biggest competitor.

The electronic cigarette industry is considered to be a relatively new and emerging industry, but it has attracted significant controversy due to concerns about its impact on health. While the health effects of electronic cigarettes have yet to be definitively proven, it is widely believed that, much like traditional tobacco products, they pose far greater risks than benefits to human health.

BYD Electronic has announced that it has completed the patent layout of its entire range of electronic atomization products and has invested in automated production lines. The company has integrated its capabilities in new material research and development, precision mold making, product design and development, and intelligent manufacturing to become a practitioner and leader in the health harm reduction field. Its goal is to provide high-quality and reliable products for the wider consumer market.

At the same time, BYD officials have stated that, under the new policy, as one of the leading companies in the field of electronic vaporization, BYD Electronics will fully support the government's relevant policies regarding electronic cigarettes, comply with the law and regulations, and make positive contributions to the healthy and orderly development of the industry.

Byd Electronic's entry into the electronic cigarette industry and its recent approval for manufacturing has led some netizens to joke that in the future, they'll be both driving Byd cars and smoking Byd cigarettes.

BYD Electronics is a manufacturing company that was spun off from BYD and independently listed on the main board of the Hong Kong Stock Exchange. It is a leading high-end manufacturing company with a platform focus on intelligent smartphones, laptop computers, new intelligent products, and automotive intelligent systems. It has established partnerships with companies such as Intel and Xiaomi and has a broad range of manufacturing capabilities, producing intelligent smartphones, laptops, masks, and electronic cigarettes, among other products.

According to public information, BYD Electronic began its layout for electronic cigarettes in 2018 and completed market analysis and product design in 2019. The product was in its initial stage of development. However, the company's focus shifted to mask manufacturing due to the COVID-19 pandemic. At the time, BYD utilized 30,000 engineers and became the world's largest mask factory in just 24 days, with a daily production capacity of up to 100 million masks.

After reaching full production capacity for face masks, BYD Electronic is now turning its attention to electronic cigarettes. By the second quarter of 2020, the company had completed the sampling of vaporizers, ceramic cores, and pods. With the successful development of ceramic cores and pod systems, the company began patenting their designs. BYD Electronic officially launched its ceramic core technology brand, "BEEM CORE," in 2021. This e-cigarette patent can calculate the remaining number of puffs based on parameters such as smoke concentration or temperature detected by a sensor, and display it on a screen. Despite the seemingly inconspicuous release of this technology, the electronic cigarette manufacturing industry is undergoing a significant turning point.

Currently, several brands have established partnerships with BYD Electronic, including Airnow, Maxfel, Lanpei, ICE, and V·ZEON. It is worth noting that these brands are not highly recognized in the market.

Besides working on their technical layout, BYD Electronics is also trying to establish their own patent protection, however, as of now, they have less than 20 effective patents related to e-cigarettes, which is far from what industry giant, Smoore International, has.

In the first half of 2022, relevant national regulatory departments have successively issued the "Electronic Cigarette Management Measures" and the national standard for "Electronic Cigarettes". According to the "Electronic Cigarette Management Measures", companies engaged in the production and operation of electronic cigarette products, aerosols, and electronic cigarette nicotine should obtain a production enterprise license.

As of August 4th, more than 130 companies have been granted licenses. In the electronic cigarette manufacturing industry, Smoore International is currently the absolute leader. According to the Sullivan Report, in 2021, Smoore's global market share continued to expand to 22.8%, surpassing the total of the second to fifth places, and continuing to maintain its position as the world's largest manufacturer of electronic vaporization devices.

However, while Smoore, the leader in the industry, appears to have a solid position, facing the huge potential market of electronic cigarettes, it is inevitable that they will face challenges from newcomers such as BYD Electronic and Luxshare Precision as they enter the market. After all, these newcomers are not lacking in resources and technological research and development capabilities.

On the morning of August 4th, BYD Electronics announced that it had been awarded a license to produce tobacco products. This news caused a surge in the company's stock price, which went up by more than 12% at one point. By the end of the day, however, the increase had narrowed to 9.5%, with shares closing at HKD 21.90 and a total market value of HKD 49.345 billion. It is clear that the financial market has high expectations for BYD's electronic cigarette business.

In fact, what people are more interested in is news about the significant breakthroughs that BYD can achieve in the chip industry. This not only inspires us, but also has a huge driving force for the development of the domestic electronics industry. When more of our electronic products can meet the needs of self-sufficiency and even enter the overseas market, we will not be afraid of being strangled by others.

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