Text/JING Review/Zhang Ziyang Correction/Zhiqiu
On December 8, a netizen who claimed to be a human resource manager of Royole Technology left a message on People's Daily , saying that Royole Technology owed its three-month salary and had not paid, with a total amount of nearly 33,000 yuan. At the same time, the netizen also pointed out that Royole Technology has owed nearly 1,000 security and cleaning workers for half a year.
After the news was announced, Royole Technology's capital chain crisis was completely exposed to the public's vision.
Royole Technology was once a domestic screen unicorn. Although it has been established for less than ten years, its production experience and technical reserves are somewhat different from those of Samsung , BOE and other companies, Royole Technology has a strong dominance in some sub-sectors.
Royole Technology has independently developed flexible integrated circuit technology to create a set of flexible product solutions , and based on its own solution, it has created a variety of terminal devices such as folding screen mobile phone FlexPai, smart handwritten book RoWrite and other terminal devices.
In fact, Royole Technology first appeared in the public eye in 2018. At that time, Royole Technology challenged Samsung on folding screen products, and took the lead in Samsung, and took the lead in releasing the world's first folding screen mobile phone. After
, Royole Technology will release related new products every time iteration of the folding screen mobile phone. This greatly increased Royole Technology's popularity, and successfully drove Royole Technology's consumer product revenue to achieve a significant increase.
official information shows that Royole Technology's consumer product revenue in 2017 was only 11.55 million, while by the first half of 2020, consumer product revenue rose to 87.66 million, an increase of more than ten times in three and a half years.
But even so, Royole Technology has not been able to get out of the quagmire of losses. In the past three and a half years, Royole Technology has suffered a total loss of more than 3.2 billion yuan, and the loss amount has shown a steady growth trend.
It is worth mentioning that although Royole Technology has owed employees' wages, it is true that Royole Technology's official statement also stated that there will be a compensation plan for wage arrears .
First, flexible display screen has high technical content and is difficult to produce;
Second, the outbreak of the epidemic, the industrial chain is inefficient , Royole Technology can only passively reduce production capacity;
Third, the market demand for flexible display screens is not high.
In fact, Royole Technology will challenge Samsung in the early stage to , and release folding screen mobile phones with loss-making. The main purpose is not to seize the folding screen mobile phone market, but to attract traffic to flexible folding screens. will allow its products to attract more users' attention.
But from the results, the flexible display released by Royole Technology has not been successfully popularized in the market. This also caused the company's revenue to be far lower than R&D investment, and Royole Technology is in a loss for a long time.
However, Royole Technology is not unable to turn the tables in the flexible display market. According to the forecast report released by the international consulting agency "Frost Sullivan", the demand for flexible electronic technology in smart transportation and smart terminal devices will usher in rapid growth. The market size is expected to reach US$304.9 billion in 2025, and Royole Technology may usher in dawn soon.
It is worth mentioning that although Royole Technology has owed employees’ wages, it is true that Royole Technology’s official statement also stated that there will be a compensation plan for wage arrears .
In addition, according to the Science and Technology Board Daily, Songhe Capital , which previously participated in Royole Technology's third round of financing, is helping Royole Technology raise funds. It is expected that Royole Technology will inject new funds into the market in December, and the employee salary issues will be solved by that time.
Overall, Royole Technology is currently facing great crises and opportunities. If Royole Technology can wait for the market to explode, it is expected to become the next BOE.But if the funds cannot be replenished, Royole Technology will most likely fall amid criticism.
In your opinion, does Royole Technology have hope of turning around?
