Royole's Bankruptcy: Why Did the Once Shining Star Fall From Grace?

Royole's Bankruptcy: Why Did the Once Shining Star Fall From Grace?On September 13th, Royole Technology held its first creditors' meeting. The company and its two subsidiaries' administrators released the first list of creditors, confirming a total debt exceeding 35 million yuan

Royole's Bankruptcy: Why Did the Once Shining Star Fall From Grace?

On September 13th, Royole Technology held its first creditors' meeting. The company and its two subsidiaries' administrators released the first list of creditors, confirming a total debt exceeding 35 million yuan. This news once again thrust the formerly glorious Royole into the spotlight. Once seen as a rising star in the Chinese tech scene, the company is now deeply mired in debt, leaving many to sigh in disappointment.

As early as June this year, the Shenzhen Intermediate People's Court issued a notice accepting the bankruptcy liquidation case of Shenzhen Royole Technology Co., Ltd. and appointed administrators. Subsequently, Royole was fined 50,000 yuan by the Longgang District Human Resources Bureau for failing to pay its employees their full wages from November 2022 to January 2024, a total of over 20.72 million yuan involving 114 employees.

Numerous Royole employees stated that the company had not paid wages for a year since November 2022, leading to a collective strike and rights defense by employees. This incident further heightened external concerns about Royole's financial status.

Looking back at Royole's development journey, the company was founded in 2012 by Liu Zihong, Yu Xiaoyun, and Wei Peng. In October 2018, Royole released the world's first foldable phone, the "FlexPai," priced at 8,999 yuan. It was truly the pioneer of foldable screen phones, debuting four months earlier than Samsung's Galaxy Fold series.

Royole once enjoyed considerable favor from the capital market. In May 2020, it completed its Series F funding round, reaching a valuation of 6 billion USD, equivalent to approximately 42.5 billion yuan. It was only a step away from listing on the STAR market. At Shenzhen Bao'an Airport, a flexible screen "tree" created by Royole once stood for a long time. It was also featured on the 2019 CCTV Spring Festival Gala stage.

However, Royole's development has encountered difficulties in recent years. On one hand, the company faced immense pressure from giants like Samsung and Huawei in market competition. Its products struggled to compete in terms of technology and market share. On the other hand, the company encountered issues in its capital chain management, leading to difficulties in capital turnover, ultimately resulting in its bankruptcy.

Royole's downfall prompts reflection on the development path of Chinese tech companies. Amidst rapid development, how to balance technological innovation, market competition, and capital management? How to find one's position in fierce market competition? These are questions worth pondering deeply.

Royole's bankruptcy also serves as a testament to the fierce competition in the tech sector. In a rapidly changing market environment, companies can only survive through continuous innovation.

Today, Royole has become a thing of the past. However, the insights it leaves behind still merit contemplation. On the path to future development, Chinese tech companies must continuously learn and innovate to achieve success in fierce competition.