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The Export Of BYD Masks Frustrated: No Certification Was Obtained

May 12, 2020

Because of the epidemic, BYD, who sold cars, also created masks and sold them abroad, but BYD has recently encountered some trouble.

Recently, news came out that the California Office of Emergency Affairs said that due to failure to obtain certification, BYD will refund half of the state ’s advance payment of $ 495 million for a single mask purchase contract, or $ 247.5 million. If BYD has not obtained US certification before May 31, BYD will refund all the deposit.

Previously, the California government planned to purchase 300 million N95 masks from BYD within two months at a price of $ 3.3 per mask; another 100 million medical surgical masks were purchased at a price of $ 0.55 each, with a total purchase amount of over 10 One hundred million U.S. dollars. On April 25th, 3 million disposable medical surgical masks have been shipped to California. This is the first shipment delivered by BYD after signing a contract with the California government. If the mask business is going well, it will let BYD breathe out in the auto market

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On April 28, BYD predicted in its first quarter financial report that the company ’s net profit in the first half of 2020 will be between RMB 1.6 billion and 18 due to factors such as “mask production is expected to contribute positively to the Group ’s sales revenue and profit growth”. Between 100 million yuan and a year-on-year increase of between 10% and 23.8%. Due to the impact of the epidemic situation and the macroeconomic downturn on the overall market demand for the automotive industry, BYD's sales of new energy vehicles fell by a steep 70% in the first quarter of this year. Affected by this, its first quarter net profit was 113 million yuan, a year-on-year decrease of 84.98%.

At present, the global auto market has been forced into an unprecedented situation by the epidemic, and sales in various countries have been worse than others. In April, new car sales in the United States fell by 46.6%, Australia fell by 48.5%, Brazil shrank by 76.0%, and passenger car sales in France, Spain, the United Kingdom, and Italy fell by 88.8%, 96.5%, 97.3%, and 97.6% respectively in April. India fell even harder, with domestic retail sales directly returning to zero in April. China's auto market has gone one step further to the darkest moment. After the sales volume shrank by 80% in February, it is currently recovering month by month. According to the latest data from the China Automobile Association, Chinese auto sales in April increased by 4.4% to 2.07 million units. However, due to fierce market competition, BYD's new energy vehicle sales in April still fell by 45.87%, and its overall vehicle sales failed to achieve positive growth.

At the worst time in the domestic car market, a group of Chinese car companies, such as BYD, have gathered together to make masks. On January 31 this year, BYD Chairman Wang Chuanfu announced the decision to make a mask in the company's executive WeChat group. After the outbreak, various enterprises flooded into the mask-making boom, triggering a surge in the prices of raw materials and production equipment. Compared with companies in many industries making masks across borders, car companies are relatively easy, and BYD directly DIY DIY production equipment. Since mass production in February, BYD's current daily output of masks has reached 20 million, making it one of the world's largest mask manufacturers at the time. As for where the melt-blown cloth that everyone grabs their heads from is coming, BYD has been silent on this. However, the use of the meltblown cloth can also be glimpsed. It is not only used for masks, but also one of the battery separator materials. BYD, which started from batteries, seized the opportunity.

When the automobile market was sluggish, masks became a new export for BYD to break through, especially in overseas markets. Although the mask is far lower than the export unit price of electric vehicles, the profit brought by its large volume cannot be underestimated. Electric buses are customized, and the prices for export to different countries are different. BYD has not disclosed the prices before. However, there have been reports that the export price of BYD's pure electric buses is $ 800,000. In addition, the Los Angeles County Metropolitan Transportation Bureau (LA Metro) announced in 2017 that it would purchase a total of 60 pure electric buses from BYD for an amount of approximately US $ 44.96 million. To date, the largest pure electric bus order received by BYD in the US market is the city of Los Angeles purchasing 134 vehicles from BYD in February this year. If it is calculated based on 800,000 US dollars, it is only 100 million US dollars. Mask orders are significantly inferior compared to orders.

It is a pity that BYD masks are exported to California for a sudden change. According to a BYD related person on May 11, this time is the delayed delivery of the N95 mask order, not the cancellation of the order. The only impact is the delivery of the N95 mask. The delay of the NIOSH certification of the BYD N95 mask resulted in the delivery of the product in May There is no problem with the product quality due to the delay. What BYD returned to was the deposit of some N95 masks given by California in advance, but the actual N95 masks had not been issued yet. In addition, the delivery of BYD disposable medical masks has not been affected, and California has also added new orders for disposable medical masks. In addition to the domestic mask market supply, BYD reached an agreement with Softbank Group in April to cooperate in the production of masks. It also has orders from other US states and other countries. It is working overtime to produce masks. Therefore, California mask orders have little effect on the company's operations.

Source : http://www.up-resin.com/

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