Royole Technology employees went on strike to demand wages, revealing a year-long wage arrears problem

Shenzhen Royole Technology Co., Ltd. ("Royole" for short) is a company focusing on fully flexible screen technology and is considered a leading company in the field of domestic innovation. However, recently, Royole Technology has once again faced the dilemma of wage arrears crisis

According to Jiemian News, about 50 Royole employees lost their jobs on December 25 People gathered at the gate of Royole International Display Base in Longgang District, Shenzhen on Sunday, holding banners and slogans, demanding that the company pay wages as soon as possible. Employees participating in the strike revealed that Royole has been in arrears with employees’ wages for one year since November 2022. Nearly a hundred rights protection employees jointly signed a document titled "Application for Settlement of the Claims of Shenzhen Royole Technology Co., Ltd. on Arrears of Employees' Wages." According to the documents, as of December 21, 2023, Royole has owed employees wages from November 2022 to November 2023 for a total of 12 periods (of which employees are in arrears for 12 months and general workers are in arrears for about 8 months). In addition, nearly a thousand employees who have resigned in the past two years have not received their salary arrears, and the cumulative arrears are approximately more than 40 million yuan

Currently, Royole’s business has shrunk significantly, leaving only some basic Screen assembly business. One current employee said that the company's income is only enough to pay social security fees. The number of employees in the company has also been significantly reduced, with only 200-300 remaining, mainly engineers responsible for maintaining production line equipment. Employees repeatedly reported the situation to the company's chairman and CEO Liu Zihong, hoping that he could solve the funding problem. However, Liu Zihong only made a verbal promise, saying that the company was seeking financing and promised to issue "retention bonuses" to employees who stayed. However, these promises have not been fulfilled

Royole is a company favored by capital. It claims to have independently developed ultra-low-temperature non-silicon process integration technology, which can produce fully flexible screens and challenge Samsung's monopoly. According to the observation of this site, from 2012 to 2020, Royole has completed 13 rounds of financing and received an investment of 9.85 billion yuan. Investors include Shenzhen Venture Capital, IDG Capital, Songhe Capital and other well-known institutions

However, Royole's business did not achieve the expected results, and instead fell into continuous losses and financial difficulties. By the end of 2021, there were rumors that Royole owed money to employees and suppliers, which attracted public attention. In April this year, there were reports that Royole had still not paid wages, and some employees were even forced to take leave. Only a few production lines were still operating.

Royole had tried to seek external help, including support from the government and investors. Royole's non-independent director Liu Shuwei issued a document in April 2022, stating that the Shenzhen Municipal Government had assessed Royole's fully flexible screen casting production line and believed that its yield rate reached 81.6%, and suggested that the government help Royole solve its funding problems problems, introduce strategic investors, and develop the flexible technology market. Royole's 6th generation flexible display production line project has also been included in Shenzhen's major project plan. But employees said that the production line has not been started

According to internal information, the government has formed a special working group to promote Royole’s debt restructuring, but no progress has been made yet. One of the obstacles is that Liu Zihong cannot Willing to give up control of the company

According to employees, Liu Zihong invited Royole’s Series A investor Jack and executives from Fisher Investment Co., Ltd. to the company to discuss debt restructuring in November this year, but No agreement was reached. The company holds 3.79% of Royole Technology's shares

So far, Royole has 18 pieces of information on persons subject to execution, and the total amount of execution has exceeded 2.9 billion yuan. In addition, the company has a record of multiple consumption restraining orders and final cases. All of this means that it is difficult for employees who have resigned to recover unpaid wages through labor arbitration

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