Royole's End: From Folding Screen Pioneer to Bankruptcy Liquidation

Royole's End: From Folding Screen Pioneer to Bankruptcy LiquidationIn 2018, Royole Corporation launched the world's first foldable phone, the FlexPai, featuring its self-developed 7.8-inch flexible display

Royole's End: From Folding Screen Pioneer to Bankruptcy Liquidation

In 2018, Royole Corporation launched the world's first foldable phone, the FlexPai, featuring its self-developed 7.8-inch flexible display. This made it a hot star in the tech world, with its valuation once exceeding 50 billion yuan, earning it the title of "the pioneer of foldable phones." However, just six years later, this company, once standing at the forefront of the times, has faced the fate of bankruptcy liquidation, a poignant story.

FlexPai 3: The Last Work?

• Recently, Royole's third-generation foldable phone, the FlexPai 3, appeared on second-hand platforms, sparking renewed interest in the company's fate. This phone adopts an outward-folding design with a retractable front camera, equipped with a massive 7.2-inch screen with thick bezels, a 16201520 resolution, a 60Hz refresh rate, a Snapdragon 765G processor, and a camera system featuring a 12MP main camera and an 8MP ultra-wide-angle lens.

The FlexPai 3 boasts unique design details. The back of the phone, corresponding to the rear camera, has a recessed area to protect the lens from scratches. However, this phone never officially launched. According to B station UP "Lao Pengyou Wang Haibin," Royole sold its third-generation foldable screen solution to VERTU, with nearly 100 FlexPai 3 phones circulating in the market being modified into VERTU AYXTA Fold3. It's estimated that only three genuine FlexPai 3 phones remain globally.

Financial Distress and Bankruptcy Liquidation

Royole's bankruptcy is not accidental. As early as December 2021, rumors circulated about the company facing massive salary arrears. In April 2022, Liu Shuwei, an independent director of Royole, urged the government to help the company attract strategic investors to alleviate its financial difficulties. In March this year, rumors of Royole's bankruptcy spread, prompting the company to issue a statement denying bankruptcy application, emphasizing its ongoing operations.

However, the wheels of fate were unstoppable. On June 6, the National Enterprise Bankruptcy Reorganization Case Information Network released an announcement stating that on May 15, 2024, the Shenzhen Intermediate People's Court ruled to accept the bankruptcy liquidation case of Royole Corporation and appointed Guangdong Huashang Law Firm as the administrator. The court will convene the first creditors' meeting on September 13, 2024. Creditors who have legally declared their claims have the right to attend the meeting. The bankruptcy liquidation cases of Royole's two wholly-owned subsidiaries, Royole Electronics and Royole Display, have also been ruled to be accepted.

Reflection: Technological Lead and Commercial Failure

Royole's failure may reflect another side of technological innovation. Despite technological advancements, various problems in the commercialization process ultimately led to the company's downfall.

1. Failure to Convert Technological Advantages into Market Advantages: Royole held a leading position in flexible screen technology, but its products didn't truly stand out in market competition. High prices, technical defects, and inadequate product experience all hindered the popularization of FlexPai phones.

2. Broken Capital Chain: Royole received significant funding in its early stages, but its capital efficiency was low, leading to a broken capital chain. High R&D investment, aggressive expansion strategies, and market competition pressure consumed the company's cash flow.

3. Management Strategy Mistakes: Royole made mistakes in areas like product iteration, marketing, and brand building. The company focused too much on technology research and development and ignored market demands and user experience, ultimately resulting in products failing to gain market recognition.

4. Intense Industry Competition: The foldable phone market is increasingly competitive, with giants like Samsung and Huawei joining the game, putting immense pressure on Royole. The company's disadvantages in terms of capital, technology, and brand made it difficult to compete with its rivals.

Conclusion:

Royole's bankruptcy epitomizes the contradiction between technological innovation and commercialization. While pursuing technological leadership, companies must also consider market demands and establish sound business models to thrive in fierce competition. Technological progress needs to be supported by commerce, and commercial success requires technological drive. Only by synergizing these two can truly great companies be established.

Appendix:

Royole's Main Products:

• FlexPai (released in 2018)

• FlexPai 2 (released in 2020)

• FlexPai 3 (not officially released)

Royole's Main Honors:

• In 2018, Royole Corporation launched the world's first foldable phone, the FlexPai, making it a hot star in the tech world.

• In 2019, Royole Corporation received the title of "Technology Innovation Company in the 40 Years of China's Reform and Opening Up."

• In 2020, Royole Corporation was awarded the "China Patent Award Gold Award."

Royole's Main Investors:

• China Huarong Asset Management Company

• China Science and Technology Venture Capital

• Shenzhen Innovation Investment Group

• Shunwei Capital

• Morningside Ventures

References:

• Kuaitech

• B station UP "Lao Pengyou Wang Haibin"

• National Enterprise Bankruptcy Reorganization Case Information Network

• Royole Corporation website

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