Recently, BYD exported to the United States California masks, suffered "paid a deposit and then returned" embarrassing things.
At one time, this matter triggered the netizens' strong onlookers and big discussion.
But due to the fragmentation and sensationalization of information, the masses who only know one thing but not the other, generally treat it as a real version of "farmer and snake" and "fairy jump".
Think this is the U.S. side of the usual face and tricks, Chinese companies deliberately "difficult", and even "digging holes and set traps.
This kind of idea and cognition is not unreasonable. But it is not objective and contrary to the facts.
To this end, in the public opinion continued to ferment for a period of time, BYD has formally responded to the public and explained, to a certain extent, to curb a variety of "rumor" type of interpretation analysis of the further dissemination.
01
But let's take a brief look at the cause and effect of the incident.
As we all know, a sudden epidemic has completely disrupted the rhythm of life in China since the beginning of the year. While China is taking the lead in the nationwide fight against the epidemic, and is increasingly making progress, many parts of the world, including North America, are experiencing outbreaks of the disease.
North America and other countries are experiencing a "mask panic".
At the beginning of the war against the epidemic, not to mention the N95, even disposable medical masks are "hard to find a mask". So the U.S. anti-epidemic early in the fight on the front line of the medical staff, because of the sharp shortage of medical protection materials, often in the "naked" work state.
The mask has become the most sought-after strategic material in the global fight against the epidemic.
BYD, as the leader of China's new energy vehicles, smelled a huge business opportunity, so under the personal deployment and supervision of Chairman Wang Chuanfu, BYD quickly developed and designed its own mask machine from February and quickly built a number of mask production lines.
BYD, which has been expanding its production lines from a million units a day at the start to 10 million units a day at present, has become the world's (note the world's) biggest mask maker.
The scale of the daily production will be what 3M, Honeywell and other big international brands, all on the ground rubbing.
02
With sufficient production capacity, BYD a variety of domestic and international "mask orders" are endless.
As the most serious epidemic situation, masks and other anti-epidemic supplies are most lacking in the United States, including California, a number of local governments have ordered from BYD to purchase masks.
Taking the "mask incident" that has been making a lot of noise on the Internet as an example, California Gov. Gavin Newsom said on May 6 that tens of millions of surgical masks have been shipped out of the $1 billion worth of masks that the state had previously ordered from BYD.
But millions of N95 masks, which were scheduled to arrive this week, have been delayed by problems in the federal certification process.
Because it was unable to get the certification by the April 30 deadline (the exact reason for the delayed certification is not known), BYU is contractually obligated to refund half of the state's advance payment on the roughly $1 billion mask contract, or $247 million.
And so talk of "BYD getting screwed and set up by the U.S." went viral on the Internet.
It's important to note that we're not advocating conspiracy theories about why BYD didn't meet its initial deadline for completing the certification.
But it's also true that Chinese companies and brands have been hit by a variety of snags and "obstacles" in overseas markets, including the United States.
There are risks involved in going overseas, and you need to be careful when investing.
This is not only BYD, any intention to develop and enter the overseas market of the local companies and enterprises, are not three-year-old children, in the relevant major decision-making, undoubtedly should have a variety of psychological and response to prepare.
And from another point of view, the local government of California "pit" BYD this matter, and indeed there is a reason, and in black and white are beforehand contractual agreements.
Before the delivery of the mask California paid half of the deposit in advance, and now because the relevant certification is not completed within the specified time, in accordance with the contractual agreement to return a portion of the deposit, but also compliance and reasonable things.
There is no need to over-interpret the outside world, or even malicious "misunderstanding" and rumors.
At present, BYD has made an official response and explanation, it is said that the affected only for the delivery of N95 masks, the return of the California paid in advance for the N95 masks part of the deposit, this part of the N95 masks have not yet been shipped.
As for the delivery of disposable medical masks, it was not affected, and at the same time, California also added new orders for disposable medical masks.
In a word, BYD said the company has not suffered any real losses because of this minor "unpleasantness," and that it has been working smoothly with a number of U.S. local governments, including the state of California, on ordering masks and other epidemic prevention supplies.
According to Le Teem Auto's understanding and observation, BYD's business map in North America has not been fragmented, and its cooperation with U.S. local governments, including those in California, has not been for one or two years.
In fact, BYD also has a specialized new energy bus factory in the U.S., and its electric buses have been sold to markets such as Europe, the U.S., Japan and South Korea.
So the "mask door" that triggered a focus on domestic netizens may really be just a minor unpleasantness, and there's no need to over-exaggerate and interpret it.
03
The production line of the masks started, and the money came rolling in.
Transition to do "mask" business for three months, to BYD has brought how considerable profit gains, through the recent release of BYD's quarterly financial report, you can see a spot.
BYD mask is undertaken by BYD Precision Manufacturing Co., Ltd., BYD Precision Manufacturing is affiliated with BYD Electronics, from BYD's quarterly earnings report shows: BYD Electronics quarterly profit of 657 million yuan, an increase of 69% year-on-year.
Data disclosed in BYD's first-quarter earnings report
Benefiting from this, in the case of the epidemic affecting many automotive friends, have a sharp decline in profits or even losses, BYD's first-quarter overall operating income of 19.6 billion yuan, attributable to the listed company's net profit of 113 million yuan.
Don't underestimate this net profit of more than 100 million yuan.
As mentioned above, under the epidemic profitability can also maintain a "positive" car manufacturers, a handful of strong such as Volkswagen Toyota, the number of international manufacturers, but also had to "layoffs and pay cuts," the mud Buddha, the national brands in the big losses! The company's main goal is to make sure that the company's products and services are well received by the public and the public!
In a sense, thanks to this "mask" business that fell from the sky, in helping BYD to fill part of the "loss hole", but also some direct profits.
The key is that in the short to medium term, this profitable business will continue to contribute to BYD's cash flow and net profit.
It's worth noting that, LeTeam Auto noted that the epidemic has transformed and invested in the "mask" business of the automobile manufacturers, far more than BYD a. But so far, BYD's masks have been used in the automobile industry for a long time. But so far, BYD's mask business is the biggest and loudest.
04
A Chinese automaker known for its new energy vehicles, why can BYD seize the opportunity in such a short period of time to become the world's largest mask manufacturer?
Simply put, don't look at BYD is now to produce new energy vehicles and women and children, in fact, and the automobile industry parallel, BYD is also the world's well-known cell phones, laptops and other electronic products "OEM" factory.
What Foxconn can do, BYD can do.
In fact, Huawei, Xiaomi and many other well-known brands of smart phones and 3C electronic equipment, many parts and components and the overall assembly, there is a large part of BYD to OEM production.
In a nutshell, in addition to automobiles, BYD is also a well-known producer of precision electronics, and in recent years has even begun to get involved in the field of rail transportation, such as cloud rail.
BYD not only makes cars and 3C electronics, but also cloud rail
About this, you can go to BYD's official website or ask the lady. Strong industrial clusters and R & D manufacturing capacity, for BYD to seize the opportunity of this "mask" business, provides a solid support.
LeTour Observations:
It goes without saying that, for a long time, both the general public and the people of the country, the Western world, including the U.S., and the West for us, are more or less with "tinted glasses", there is a certain amount of "miscalculation. "The first is that the government is not going to be able to do anything about the situation.
The "hot and cold" political and economic relations between the big powers will undoubtedly bring a greater potential and direct impact on the local companies and enterprises "going overseas" to seek development.
These are all foreseeable, and companies should do their homework and preparation. But not because of the difficulty of the uncertainty factors, not to expand overseas markets across the board.
After decades of reform and opening up and development, we have long passed the era of "stuck in a rut, closed doors".
To BYD this "mask door", from a single event point of view, the outside world can be concerned about the matter and vigilance, but obviously there is no need to over-interpretation or even misinterpretation.
More often than not, rumors are more challenging and scary than the difficulties themselves.
This article comes from the author of the automobile home car, does not represent the views of the automobile home position.