With a loss of $3.2 billion, six months of unpaid wages and three months of vacation for all staff, royole’s darkest hour has come?

2022-06-13 0 By

The year 2022 will not be easy. In addition to the fierce layoffs of major Internet companies, there are still many start-up companies and private enterprises struggling to support them.Royole Technology, once valued at 52.5 billion yuan and listed as one of China’s top 10 unicorns, has been caught up in the controversy over unpaid wages.From the scenery unlimited to eclipse, known as the “originator of folding screen” in the soft screen market for ten years, but finally to become the victim of this industry?On April 6th, according to the securities Times E company news, Royole Technology has been in arrears of employees’ wages for several months, and now the company announced that all employees will have a three-month vacation from April.Royole technology has been without food for 22 months and has not paid its employees since September last year, sources said.At the end of March, according to the Red Star Capital Bureau, an employee of Royole Technology said that he had received five unpaid salary emails within six months from September last year to now, all of which were basically the same: “The company is promoting financing, the funds will soon be received, and the salary will be paid immediately.”The long period of unpaid wages has also led to a mass exodus of royole employees. According to insiders who spoke to the media, royole’s OA system has seen a steady decline in the number of employees, from 1,800 at the beginning of 2022 to 700.Liu Zihong, founder of The company, lamented the company’s plight twice in the middle of the night. Once, at 1 am on December 9, 2021, Liu forwarded the article “Musk recalls the brink of bankruptcy: Woke up every day and cried all night in his dream” in his wechat moments, and wrote: “In fact, everyone has had difficulties.In the darkest hour of life, don’t look for help in the Nick of time. The only thing you can do is stick to it and never give up.”Another time was on January 31, 2022, Chinese New Year’s Eve. At 12:42 a.m., Liu wrote on his micro blog, “All the past is a prologue, sweet, sour, bitter, hot, and finally a story.”Royole technology has been in operation for nearly 10 years since it was founded in May 2012.Liu Zihong, the founder of Royole Technology, chose “flexible display” as his research direction during his doctoral study at Stanford. With the help of his tutor and his high understanding, he completed his doctoral thesis in less than 3 years, which was called the shortest Chinese doctoral graduation in the history of Stanford.After graduating from Stanford, Mr. Liu, 26, joined IBM to work on flexible electronic screens. Three years later, in 2012, he quit the company to found Royole.Two years later royole unveiled the world’s thinnest (about 0.01 mm thick) flexible display that can be freely rolled up and retractable.In 2015, Royole, which only wanted tens of millions of yuan, obtained 11 rounds of financing. In the following years, there have been a steady flow of capital. It can be said that royole is the darling of capital.In the following years, Royole has released its own products, such as smart handwriting, folding mobile phones and so on.In 2018, Royole was listed as one of the top ten Unicorns in China;Two years later, Royole filed for a listing on the Science and Technology Innovation Board, which Bloomberg estimates will value the company at $52.5 billion.However, according to the prospectus, royole technology’s operating income from January to June in 2017, 2018, 2019 and 2020 was 647.2767 million yuan, 109.0458 million yuan, 226.9777 million yuan and 1167.0737 million yuan respectively, totaling about 517 million yuan.However, during the same period, the net profit of returning mothers was -359,3128 yuan, -802,179,700 yuan, -1073,192,800 yuan and -966,572 yuan respectively, with a cumulative loss of about 3.194 billion yuan.Successive years of losses directly reflect the lack of the most basic hematopoietic ability of this enterprise, but also reflects that its products are basically not accepted by the market.For so many years, he has been living by “burning money”, so he has been labeled by netizens as “cheater company”, “big liar” and “keen on drawing cakes”.How did the unicorn run out of ammunition and food?Once was the capital of the rou yu technology is how to go to the “grain” point?First, the product is not accepted by the market.Royole technology has invested a lot in product research and development, but its product commercialization ability is poor. Currently, zte is the only company we cooperate with.Second, business strategy. In terms of product line layout, Royole did not only focus on the research and development of flexible display technology, but also made mobile phones, smart handwriting, flexible clothes and hats, etc. Instead, it lost the core value of the enterprise and was finally encumbered by too much product development.Third, entrepreneurial timing deviation, giants into the game, intensified competition.Ten years ago, when Liu Zihong just entered the flexible screen, the technology was not mature and the market was not mature. Ten years later, the application of flexible display is still in the conceptual stage, and the current application is foldable mobile phone.Samsung, LG, BOE, Huawei and other giants have also entered the flexible screen, the market is already full of graduates.It takes a lot of cost, energy and time to build production lines, research and development, and make products.But Royole’s financial resources are clearly not comparable to those of such huge companies as Samsung and Huawei.Entrepreneurship has always been a narrow escape, now look back at liu Zihong’s entrepreneurial road, it is likely to become a “soft screen market” a stepping stone.5G, VR, and even the current metasexes have been put on the shelf after the uproar.Tech startups are often sacrificed to The Times.