There are many cases of car companies "not doing their jobs properly". For example, BYD, the "big brother" in the new energy field, occasionally creates some unexpected things.

On August 4, BYD Electronics’ official Weibo announced that BYD Precision Manufacturing Co., Ltd., a wholly-owned subsidiary of BYD Electronics, has obtained the “Tobacco Monopoly Production Enterprise License (Electronic Cigarette Processing Enterprise)” issued by the State Tobacco Monopoly Administration.

This also means that BYD Electronics officially participates in the competition in the field of electronic cigarette OEM as a legal identity, and Smol International, which is currently the absolute leader, will also usher in its biggest competitor.

Electronic cigarettes are an emerging industry, but the controversy is also very huge. Although there is no theorem around the health problems of electronic cigarettes, in fact, like traditional tobacco, it is still more harmful than beneficial to human health.

BYD Electronics said that the company has completed the patent layout of a full range of electronic atomization products and the investment and construction of automated production lines. Practitioners and leaders in the field of health harm reduction, providing users with excellent products of quality and peace of mind.

At the same time, BYD officially stated that under the new policy, as one of the leading manufacturers in the field of electronic atomization, BYD Electronics firmly supports the relevant policies of the state on electronic cigarettes, conducts production and operation in compliance with laws and regulations, and makes positive contributions to the healthy and orderly development of the industry.

Regarding BYD Electronics' entry into the electronic cigarette industry, it was officially approved as an OEM. Some netizens joked: "I will drive BYD cars again and smoke BYD cigarettes in the future."

BYD Electronics is a manufacturing enterprise spun off from BYD and listed independently on the main board of the Hong Kong Stock Exchange. , has established cooperative relations with many manufacturers such as Intel and Xiaomi, and the manufacturing OEM spans many fields, and the products cover smartphones, laptops, masks, electronic cigarettes, etc.

According to public information, BYD Electronics has started its layout of electronic cigarettes in 2018. In 2019, the market analysis and product design of electronic cigarettes were completed, and the products were initially formed. But then caught up with the epidemic, the company's focus shifted to mask machines. At that time, BYD used 30,000 engineers, and it took only 24 days to become the world's largest mask factory, with a daily production capacity of up to 100 million.

After the production capacity of masks was saturated, BYD Electronics continued to make efforts to e-cigarettes. By the second quarter of 2020, the company has completed the proofing of atomizing cigarettes, ceramic cores, and pods. With the successful development of ceramic atomizing cores and pod systems, the company has begun to lay out patents.

BYD Electronics will officially launch the "BEEM CORE" brand logo of ceramic atomizing core (ceramic core) technology in 2021. This electronic cigarette patent can calculate the current remaining number of puffs of the electronic cigarette based on parameters such as smoke concentration or temperature detected by the sensor, and display it on the display. Behind this seemingly inconspicuous technology release, the field of electronic cigarette OEM is ushering in an industry turning point.

At present, many brands have established cooperative relations with BYD Electronics, such as Airnow, Maxfel, Lanpei, ICE Blizzard, and V·ZEON. It is worth noting that these brands are not well known in the market.

In addition to the technical layout, BYD Electronics is also working hard to build its own patent moat, but as of now, there are less than 20 valid patents related to e-cigarettes, which is far from the industry giant Smol International.

In the first half of 2022, the relevant national competent authorities have successively promulgated the "Administrative Measures for Electronic Cigarettes" and the national standards for "Electronic Cigarettes". For business activities, a production enterprise license shall be obtained. As of August 4, more than 130 businesses have been licensed.

In the field of electronic cigarette OEM, Smol International is currently the absolute leader. According to Sullivan's report, in 2021, Small's global market share will continue to expand to 22.8%, surpassing the sum of the second to fifth places, and will continue to maintain its position as the world's largest electronic atomization equipment manufacturer.

However, the status of the leading brother of Smol seems to be stable, but in the face of the huge cake of electronic cigarettes, with the influx of manufacturing giants such as BYD Electronics and Luxshare Precision into the market, it is inevitable that Smol will be impacted by latecomers. . After all, the latecomers are not far behind in terms of capital reserves and technological R&D strength.

After BYD Electronics announced on the morning of August 4 that it had been granted a license for a tobacco monopoly production enterprise, its share price rose by more than 12%. It can be seen that the capital market is looking forward to its e-cigarette business.