Royole: Struggling with Financial Challenges
Background of the Company
Royole, known for pioneering the world's initial foldable smartphone, finds itself in a financial predicament. According to China's News Daily, the company has not paid its employees for a whole year. A leader in the realm of flexible display tech, Royole has been grappling with a crisis for more than a year now.
Employee Demonstrations and Requests
Around 50 Royole staff members staged protests at the entrance of Display Headquarters in Shenzhen. Holding up banners and chanting slogans, they expressed their dissatisfaction. The employees turned to demonstrations when the assurances made by CEO Liu Zihong were not fulfilled by the company. Since November 2022, they have not received their salaries and demand an urgent resolution.
The Employee Rights Protection Committee has filed an application to resolve the issue of pending wage payments against Shenzhen Royole Technology Co., Ltd. Some workers have not been paid for eight months, while others have not received any wages for a full year. Many employees have departed due to the financial turmoil.
Response from the Company
Royole has acknowledged its financial losses and stated that it can only manage social security deposits. Currently, the company has a workforce of just 200-300 individuals, primarily engineers overseeing production line maintenance.
Seeking External Aid
Despite appealing to the government and investors, Royole has not seen positive outcomes. Employees claim that the production line remained inactive throughout 2022. Though the government has assisted in restructuring debts, there have been no significant improvements noted.
Royole's Past Achievements
Royole has played a significant role in the industry in the past. Their latest smartphone, the Royole FlexPai 2, released in 2020 with 12GB RAM and 512GB storage, was noteworthy. In 2019, the company created a buzz with its first smartphone, the Royole FlexPai, which quickly sold out post-launch. Royole has been a strong competitor to Samsung Display, especially with its advancements in non-silicon process integration tech for flexible displays.
Final Thoughts
Royole, the company that revolutionized the smartphone industry with its initial foldable smartphone, is now encountering financial challenges. Unpaid salaries have led to protests and demands from employees. Despite seeking help from external sources, the issue remains unresolved. While Royole has had significant accomplishments in flexible display technology, its ongoing financial crisis has resulted in a notable reduction in its workforce.
