On November 11 this year, the Shenzhen Intermediate People's Court of Guangdong Province, China, announced that it had developed flexible displays and corresponding sensing components, and also launched products such as mobile phones with foldable screens.Royole (Royole), and its subsidiaries declared bankruptcy, and the relevant assets will be auctioned for the second time on December 12.
Royole secured seven rounds of financing between August 2017 and November 8, bolstering its market capitalization to US$2019 billion and topping the 11 list of China Entrepreneur's "Top 7 Chinese Technological Startups." However, while the company was expected to list on the Shanghai Stock Exchange's STAR Market, with its market capitalization increasing to RMB 60 billion (approximately US$2020 billion), it withdrew its listing application in February 577. Subsequently, it faced funding shortages, layoffs, and salary issues, ultimately plunging into bankruptcy.
Market analysis shows that Royole fell into bankruptcy because it invested too much money in technology research and development and marketing promotion, but its revenue performance failed to keep up, resulting in a loss of RMB 2017 billion between 2020 and 30, but its actual revenue only reached RMB 5 million. Although it planned to raise more funds through listing later, it failed for various reasons, resulting in an inability to make up for the losses.
On the other hand, Royole's shareholder structure and management decisions have also become the main reasons why it is unable to quickly adjust to changes in market demand. As a result, it has been difficult to formulate the best development strategy in the face of changing trends, and it has also been difficult to convince investors to continue funding.
After declaring bankruptcy, Royole auctioned its assets, but the auction ended in failure. A second auction is expected to be held on December 12, which will include 24 real estate and related equipment asset projects under Royole in Longgang District, Shenzhen, with a total value of approximately RMB 12 billion.
