BYD, Which Produces 5 Million Masks Per Day, Will Produce A Stoma Cover In Shanwei, Guangdong.

According to the information from the Pacific automotive network, after the masks and disinfectants, Shanwei BYD Electronics Co., Ltd. changed its business scope in February 21st, adding the business of research, production and sale of mask production equipment.

Statistics show that Shanwei BYD Electronics Co., Ltd. was established in May 31, 2017 with a registered capital of 50 million yuan, and is owned by BYD Precision Manufacturing Co., Ltd. 100%. This means that in addition to the production of donations, masks and disinfectants, BYD has increased the production of mask production equipment.

The first textile network has previously reported that by the continuous impact of the new crown pneumonia epidemic, masks and disinfectants and other epidemic prevention materials are also frequently in urgent need. In February 8th, BYD formally announced the undertaking of the mask production project. It is expected that the masks and disinfectants produced by the company will be mass-produced in February 17th, and the end of February will achieve 5 million masks per day and 50 thousand bottles per day.

Feng Sheng, an analyst at Sino Thai securities, said that the demand for the end of the epidemic is lagging behind China, and is in the early stages of the outbreak. Among them, the mask manufacturers of some drug bureaus in Italy had no stock, 100 masks sold for up to 100 euros, German drugstore masks rose 24 times in 10 days, and sold for 60 euros / boxes. 30 people in Daegu and 1 in Gyeongbuk had 30 masks, and Japan announced in February 21st that it had gradually resumed the import of masks from the Chinese market. From the perspective of global mask purchase and soaring prices, the demand for respirators has increased dramatically.

From the supply side, according to the data released by the China Textile Business Association, 4 billion 540 million masks were produced in China in 2018, accounting for 50% of global output, averaging 12 million 430 thousand per day. Affected by this new crown epidemic, 30 new provinces have been adding new mask production lines. According to the data released by the national development and Reform Commission, as of February 22nd, the daily output of Chinese masks has reached 54 million 770 thousand, 3.8 times the daily output at the beginning of the month, and 4.4 times the daily output in 2018. In order to meet the domestic market demand and increase foreign exports, we need to continuously increase the mask production capacity.

Feng Sheng believes that under the epidemic situation, the demand for mask products is large, and the mask production equipment is more positive under the epidemic situation.

Huachang securities research fellow pointed out that the current mask production capacity is relatively limited, it is difficult to supply in the short term, this is due to several reasons: first, there is not a large number of mask equipment enterprises. According to the seller (Zhejiang innovation group), there are less than 40 factories in China that have the ability to manufacture mask production lines, and the two is that the scale of masks is too small. According to the data from the sky, the registered capital of five brands of masks is between 100-500 000, and the number of insured personnel is less than 100. Three, the production capacity of mask equipment enterprises is limited. According to the stock production capacity of 20 million per day, 100 production per minute per production line, 8 hours a day, the stock may have only 400 production lines, which means that even if the mask production equipment is updated once a year, only 400 production lines can be produced every year, less than 40 per month. Four, the new entrants will have limited output in the short term. According to the agreement between Shanghai electric and the three gun group in February 6th, the production of 10 production lines will not be completed until February 20th. This is already the result of rapid progress. The company expresses "the most difficult task to be completed in the shortest time". Shanghai Electric's masks equipment manufacturer wins technology is a strong equipment supplier (main industry lithium power equipment, this year just completed the mask machine, market value is close to 20 billion), the production and delivery of 10 lines still need 2 weeks, and the production of other enterprises is more difficult to expand in the near future. In addition, the operation mode of the equipment industry is to sell products, and there will be no stock in stock.

As a result, Zhang Yu believes that equipment in the short term or difficult to supply a large number of masks to expand production constraints.

Public information shows that BYD was founded in 1995. It started mainly as an electronic product battery business. By 2003, the company has become the world's second largest rechargeable battery manufacturer. Wang Chuanfu, the founder of the company, has seen the bright future of the automotive industry and the bright prospect of combining with its battery technology, and decided to enter the auto industry. After years of development, the company has formed a complete set of steam. The product line covers traditional and new energy passenger cars and commercial vehicles.

Shanwei BYD Electronics Co., Ltd. was founded in May 31, 2017, with a registered capital of 50 million yuan and a 100% shareholding by BYD Precision Manufacturing Co., Ltd. Prior to this, BYD's multi family companies increased "disinfectant, medical devices, industrial protective equipment" and other related businesses.

According to the financial report, in 2018, BYD realized revenue of 130 billion 55 million yuan, an increase of 22.79% compared with the same period last year. The net profit attributable to shareholders of listed companies was 2 billion 780 million yuan, down 31.63% compared with the same period last year. In the first three quarters of 2019, BYD realized 93 billion 800 million yuan, an increase of 5.44% over the same period last year. The net profit attributable to shareholders of listed companies was 1 billion 570 million yuan, up 3.09% over the same period last year. Basic earnings per share of 0.51 yuan.