In the wave of scientific and technological innovation, Shenzhen Royole Technology Co., Ltd. (hereinafter referred to as "Royole Technology") has won wide attention from the market and investors with its cutting-edge technology and innovative products. In recent years, however, the once-glamorous company has run into serious financial trouble, triggering a strike by employees.
1. Royole Technology's financial dilemma.
Since its establishment in 2012, Royole has been occupying a place in the field of display technology with its unique technology and innovative products. Over the course of 8 years, the company has completed 13 rounds of financing, totaling 98500 million yuan, including Shenzhen Venture Capital, IDG Capital, Songhe Capital and other well-known investment institutions. However, despite such strong capital support, Royole's business has never formed an effective business cycle.
According to reports, Royole Technology has been in arrears for nearly 6 months of employees' salaries and payments to ** merchants at the end of 2021. At the beginning of April this year, the company was exposed that wages had not been paid, and even some employees were forced to "take vacations", and only a small part of the production line was still operating. These phenomena show that Royole Technology has fallen into serious financial difficulties.
2. Employees strike to protect their rights.
Faced with the company's financial difficulties and long-term wage arrears, Royole employees finally couldn't bear it anymore and chose to strike to defend their rights. At the Royole International Display Base in Longgang District, Shenzhen, about 40 or 50 Royole employees gathered at the gate of the base to demand that the company pay their salaries.
Employees said that they have repeatedly reported the problem of wage arrears to the company's management, but it has never been effectively resolved. Therefore, they had to go on strike to protect their legitimate rights and interests. This action has also attracted wide attention and support from all walks of life.
3. The company's response and dilemma.
In the face of employees' strike actions, Royole Technology said that the company is actively raising funds to solve the problem of employees' wages as soon as possible. However, judging by the current situation, the company's financial woes are not easy to solve.
According to a representative of Royole's trade union, there are only about 200-300 employees left in the company, most of whom are engineers who maintain production line equipment, and their business is only basic screen assembly business, and "the income is only enough to pay social security." This indicates that the company's business has shrunk significantly and is unable to maintain normal operations.
In addition, the data displayed by the Tianyancha app also reveals the predicament of Royole Technology. The company has 18 pieces of information on persons subject to enforcement, with a total amount of more than 2.9 billion yuan. In addition, the company also has a number of consumption restraining orders and final case information. All this shows that Royole's financial situation has deteriorated seriously.
Fourth, the cause analysis.
There are many reasons why Royole is in such a serious financial predicament. First of all, from the perspective of the market environment, the competition in the field of display technology is becoming increasingly fierce, and major enterprises are constantly increasing investment and research and development efforts. In this context, Royole's technological advantages have been gradually weakened, and its market share has been continuously eroded.
Secondly, from the perspective of the company's internal management, Royole Technology has serious problems in capital management and operation. Although the company has completed multiple rounds of financing, the use of funds has not been efficient. In addition, the company is also too conservative and cautious in business development and market development, and misses a good opportunity for market development.
5. Looking forward to the future and countermeasures.
The future development prospects and countermeasures of Royole Technology can be considered from the following aspects:
Seeking new financing channels: Royole needs to actively seek new financing channels to alleviate the current financial pressure. This can include negotiating with investors for additional financial support or seeking assistance from the relevant authorities.
Optimize business structure: Companies need to optimize their business structure deeply, focusing resources on products and services with competitive advantages and profitability prospects, while reducing or improving unprofitable business lines.
Improve operational efficiency: Improve the company's financial position by improving the company's operational efficiency by improving production processes, reducing operating costs, etc.
Strengthen technology research and development: continue to increase investment in technology research and development in the field of display technology to maintain technological leadership and develop more competitive products in the market.
Improve internal management: Establish a sound internal management system, strengthen the supervision and risk assessment of the use of funds, and prevent the recurrence of similar problems.
To sum up, the future of Royole Technology is still full of challenges, but there are also certain opportunities. Companies need to actively respond to the current predicament and find a way out of the difficulties and achieve sustainable development through multi-faceted efforts. At the same time, investors and all sectors of society should also give certain support and help to jointly promote the healthy development of China's display technology industry.
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