Key Developments
Shenzhen Royole Display Technology Co., Ltd. (hereafter referred to as “ROYOLE Technology“), recently faced a failed auction for its 1.23 billion RMB (approx. $173 million) worth of assets. The auction, hosted on Alibaba’s Asset Auction platform, concluded on December 15 without receiving any bids.
- Auction Details:
- Initiation: December 14, 10 a.m.
- Conclusion: December 15, 10 a.m.
- Starting Price: $173 million
- Security Deposit: Approx. $8.6 million
- Increment per Bid: $840,000
- Assets Covered:
- 12 real estate properties in Longgang District, Shenzhen, with a combined area of 96,095 square meters. Estimated market value (as of November 25, 2024): $108 million.
- Land use rights valid until October 26, 2046.
- Equipment: 1,961 machinery items, 1,609 electronic devices, 3 construction projects, and 8 electric forklifts, with a liquidation value of $65 million (as per Shenzhen Zhongfeng Asset Appraisal Co., Ltd.).
Although the auction received over 18,000 views, no bids were placed, leaving the assets unsold.
Bankruptcy Declared for Three Key Subsidiaries
On November 18, the Shenzhen Intermediate People’s Court declared ROYOLE Technology, Royole Display, and Royole Electronics Technology Co., Ltd. bankrupt. The decision came after the companies were deemed unable to meet their debt obligations, marking the end of a case formally accepted in May 2024.
The Rise and Fall of ROYOLE
Founded in 2012, Royole was once hailed as a pioneer in flexible display technologies. Its proprietary Ultra-Low Temperature Non-Silicon Semiconductor Process (ULT-NSSP) gained global attention in 2018 with the launch of the world’s first foldable smartphone—preceding similar releases by Samsung and Huawei. However, the phone’s actual sales reached only a few tens of thousands of units. Many of the company’s publicized partnerships were later revealed as exaggerated or abandoned due to mass production challenges.
Funding and Valuation
Royole secured funding across 13 rounds, with its last (Series F) completed in May 2020, valuing the company at $6 billion. Despite these successes, its ambitious plans to sustain operations through IPOs failed twice, primarily due to overestimated valuations and disruptions caused by the pandemic.
Financial Troubles
According to prior announcements from the Shenzhen Intermediate People’s Court:
- Royole’s liabilities exceed $6.6 billion, with unpaid wages surpassing $8.5 million.
- Including unfulfilled stock options, the company owes employees a total of $22.6 million.
The bankruptcy marks a dramatic fall for a company once celebrated for technological breakthroughs but plagued by operational inefficiencies and unfulfilled promises.
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