4 news on April 1, Royole refuted previous bankruptcy rumors. Royole Technology issued an announcement stating that the company has never actively applied for bankruptcy liquidation, nor has it entered bankruptcy procedures, and the company is still in operation. ’s recent bankruptcy rumors come from individual employees who have resigned from the company filed for bankruptcy review in the name of option settlement disputes.
(Source: Royole Technology official)
It is reported that Royole Technology began to face the problem of tight capital flow after withdrawing its IPO application in 2021. At the end of last year, some employees went on strike outside the company, displaying banners demanding wages. At the beginning of this year, Royole Technology Co., Ltd. was listed on the list of dishonest persons subject to execution by the Shenzhen Intermediate People's Court because of its avoidance of execution. It was subject to high consumption restrictions and became a so-called "lao Lai".
, the company that is the originator of folding screens, was founded in 2012. Its core competitiveness lies in the flexible electronic technology it developed, especially its independently developed ultra-thin flexible display. One of Royole Technology's best-known products is the Royole Flexpai, the world's first commercial foldable smartphone, released in 2018.
(Source: Royole Technology official)
It is really sad that such a start-up company that has high hopes from the market has ended up like this. BOE and Royole have experienced similar difficulties, but the difference is that even in difficult times, BOE has continued to ship products, mainly mid- to low-end products. Although the order volume is not large and the profit is not high, its stable customer base provides it with a continuous source of income, and it eventually received the support of large enterprises to tide over the difficulties. In contrast, in the ten years since Royole Technology was founded, there have been few manufacturers on the market that adopt its screen technology.
(Source: Royole Technology official)
Looking at Royole Technology’s development route, today’s results have actually been in place for a long time.
First of all, in terms of company management and strategic choices, Royole Technology's challenge is that its ambitions are too large and its resources are scattered. Company attempts to exist in the market as a screen supplier and a consumer electronics brand at the same time, but the resources, technology and market strategies required for these two directions are completely different. Royole tried to build its own business through b-end business and obtained some intention orders, but these orders did not materialize in the end, showing its shortcomings in internal execution and market influence.
Secondly, in terms of fund management, Royole Technology faces huge challenges in the panel (screen) industry, an asset-heavy, long-cycle field. Although the company has conducted multiple rounds of financing and received a considerable amount of funds, Royole's funds are still insufficient compared with industry giants, such as BOE, which has received more than 300 billion yuan in accumulated funds through various methods. Royole's use of limited funds is not extreme enough. For example, its investment in the "International Flexible Display Base Project" exceeds its total financing, and its production capacity-output ratio is not advantageous compared to its peers.
(Source: Royole Technology official) In terms of
technical route, Royole has chosen a different technical path from the mainstream market - ultra-low temperature non-silicon process integration technology (ult-nssp), although this technology has theoretical costs, Yield and other advantages, but the mainstream technology route on the market is polycrystalline silicon (LTPS) technology led by BOE, Samsung and other companies, which has been widely used and verified. Although Royole's technology is unique, it has failed to demonstrate sufficient competitiveness in commercial products, which has made it difficult for it to gain widespread recognition and application in the market.
Finally, Royole’s multiple failed IPO attempts also reflect its internal problems and external doubts about the authenticity of its finances and orders. From many aspects, Royole Technology's challenges are multi-dimensional, including internal management and strategic positioning issues, as well as technical route selection and market adaptability challenges. These factors have collectively led to Royole Technology's current predicament.
