On November 28, news emerged that ROYOLE Technology Co., Ltd. (hereafter referred to as “ROYOLE“)’s assets are being publicly auctioned on Alibaba’s “Ali Assets” platform. The starting bid is approximately USD 169 million, and the auction will take place from 10:00 AM on December 14 to 10:00 AM on December 15 (subject to extension).
Auction Details
According to information released by Ali Assets, the assets of ROYOLE up for auction include 12 real estate properties located at No. 18, Dingshanhe Road, Longgang District, Shenzhen, and various equipment. The starting bid for the assets is approximately USD 169 million, with a minimum bid increment of USD 824,000. Bidders are required to submit a deposit of approximately USD 8.4 million.
Among these assets, the real estate covers an area of 96,095 square meters and had an assessed value of approximately USD 105.7 million as of November 25, 2024. The land use term is 30 years, from October 27, 2016, to October 26, 2046. The equipment assets include 1,961 machines, 1,609 electronic devices, 3 ongoing projects, and 8 electric forklifts. According to the evaluation report by Shenzhen Zhongfeng Asset Appraisal Co., Ltd., the liquidation value of the equipment is approximately USD 63.3 million.
Bankruptcy and Decline
The announcement of the auction comes less than ten days after ROYOLE declared bankruptcy. On November 19, the National Enterprise Bankruptcy Reorganization Case Information Network issued three bankruptcy announcements, declaring the bankruptcy of ROYOLE Technology Co., Ltd., ROYOLE Technology Shenzhen Co., Ltd., and ROYOLE Electronics Technology Co., Ltd..
Once valued at over $5.5 billion USD, ROYOLE was considered a “unicorn” in the industry and launched the world’s first foldable-screen smartphone. Reviewing ROYOLE‘s 12-year growth journey, the company quickly grew into one of the most high-profile “unicorn” companies after its inception in Shenzhen in 2012. However, by around 2021, the company fell into difficulties such as production issues, a broken capital chain, and later, employee wage disputes and bankruptcy restructuring, leading to a rapid decline in just two to three years. Public records show that after receiving its last round of financing in 2020, ROYOLE Technology has not received further investments, and its plans for an IPO were repeatedly postponed.
Attempts at Self-Rescue
Before its bankruptcy declaration, sources revealed that ROYOLE had attempted a “self-rescue” strategy. Former employees disclosed that after the court formally accepted ROYOLE Technology’s bankruptcy liquidation case this year, some executives, as well as over 400 current and former employees, jointly petitioned the court to convert the bankruptcy liquidation procedure into a bankruptcy reorganization procedure.
However, this petition was rejected. According to Zheng Mingwei, Director of the Corporate Comprehensive Business Committee at Zhongyin (Shenzhen) Law Firm, the downfall of ROYOLE was mainly due to strategic mispositioning. ROYOLE positioned itself as a smartphone manufacturer rather than a display supplier, making it a competitor to mobile phone manufacturers and losing a significant portion of its customer base. “The smartphone industry is highly competitive. While ROYOLE had technical advantages in flexible displays, it faced major giants in the mobile phone sector, with no clear advantage. Therefore, ROYOLE Technology‘s main problem was the wrong positioning—it ventured into areas where it had no competitive edge.”
As ROYOLE‘s assets go up for auction, the question remains: who will take over these assets? How will the company handle its substantial debts and creditors? Stay tuned for further developments.
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