A market source said Wednesday afternoon that BYD Electronic International Co Ltd (285: Hong Kong) has completed the patent portfolio strategies and planning in its electronic cigarette business, and may enter mass production in June.

BYD Electronic, an OEM/ODM, is a spin-off of BYD Co Ltd (1211:Hong Kong), which is also known for its automotive subsidiary BYD Auto Co., Ltd.

As an OEM, the specific progress of BYD's e-cigarette business depends on customer certifications and demands. It is estimated that the production value of all 40 production lines will be close to ten billion yuan.

A person familiar with the matter said that someone has recently visited BYD Electronic's production lines of electronic cigarettes.

In this regard, BYD Electronics responded with no comment. Its stock rose 20% in the afternoon.