Royole technology was exposed as a massive unpaid wage -PCB suppliers are cash-strapped

Shenzhen Royole Technology Co., LTD. (hereinafter referred to as royole), a "unicorn" company once valued at more than 50 billion yuan, fell into a funding crisis after it withdrew its application for listing on the Science and Technology Innovation Board in February this year. Royole Technology has suffered from massive unpaid wages, media reported on December 8.

Shortly after 1 a.m. on Dec. 9, Royroyo founder, chairman and CEO Liu Zihong posted a seemingly tragic response on his personal social media account after the pay issue broke. He quoted "Musk recalls the brink of bankruptcy: Woke up every day and cried all night in his dream," and wrote: "Everyone has a hard time, and in the darkest moments of life, don't expect timely help."

Royole is actually quite controversial. December 9, shenzhen local investment bank personage to "daily economic news" reporter bluntly, Royo science and technology was exposed to large-scale unpaid wages, it does not feel strange.

Also have senior investment bank personage to say to reporter, rou yu science and technology should be good in technology, but finance is really not good. "Royole is one of those companies that hasn't figured out how to monetize and monetize." Its said.

The IPO application was withdrawn after being selected for on-site inspection

Royole was once a highly prized unicorn before the pay issue was exposed. The flexible OLED screen maker, founded in 2012, has raised about 2.95 billion yuan in multiple rounds of equity financing in recent years, valuing it at more than 50 billion yuan.

In the shareholder background, Royole technology is also very deep. According to the previous prospectus (draft), royole's shareholders include citic Capital, Shenzhen Venture Capital, Hangzhou Cornerstone, Poly (Hengqin) Capital and many other well-known investment institutions and their shareholder camps. Among them, Citic Capital is now the second-largest shareholder after founder Liu Zihong.

Under the support of layers of "halo", royole technology submitted a prospectus (filing) at the end of last year, sprint science and technology innovation board, plan to raise 14.4 billion yuan, the overall valuation of 57.7 billion yuan. Once the IPO is successful, Royole technology will receive tens of billions of capital, then perhaps, today's royole technology situation will be completely different.

However, as royole technology prospectus (draft) disclosure, the outside questioning voice. For example, Royole's products have been "anonymous" in the market, and the rou pai mobile phones released by royole are not easy to sell. The products have been withdrawn from the factory by dealers, and the offline self-operated stores have been withdrawn.

In late January, the China Securities Regulatory Commission announced on-site inspections of 19 ipos, including Royole.

In the view of some bankers, on-site inspections, while random, are often directed, and companies that are selected face greater scrutiny. To this end, many of the 19 companies were drawn back from the difficulties, there was a batch withdrawal of IPO application phenomenon, causing public concern.

Similarly, royole withdrew its IPO filing on the evening of February 10. For the withdrawal of the IPO application, Royole technology's public response is due to the "three types of shareholders" problem. However, an investment banker in the industry told the National Business Daily that "the main problem is royole's financial problems. Before royole's financial statements were overdue, but the new annual report has been unable to come out".