Royole Fails to Pay Workers on Time Due to Cash Crunch
理财鱼小提示：Royole Fails to Pay Workers on Time Due to Cash Crunch
BEIJING, December 8 (TMTPOST) — Chinese flexible display and sensor maker Royole Corporation has failed to pay workers on time because of a shortage of funds, Caixin reported, quoting several internal sources at the company.
Several Royole’s employees told Caixin that the company had failed to pay their October salary by November 30, the deadline by which the company promised to pay employees their October salary.
Royole has been reportedly struggling with cash shortages for several months after giving up its public offering plan on the STAR market.
Source: Visual China
The company’s founder and CEO Liu Zihong held a staff meeting on November 30 to explain the situation. According to sources, Liu claimed that the company is looking for financing and should be able to get some money in December. Royole should be able to pay its employees their overdue salary by the end of December or early January next year, Liu said. However, there are still uncertainties about the matter, according to Liu.
This is the first time for Royole Corporation to delay salary payment to employees on such a large scale.
Royole Corporation has been struggling with its cash flows. The company had been frequently delaying salary payments to its employees before early 2021. The company started to delay salary payments to some of its senior employees in the first half of 2021.
Royole Corporation is a manufacturer of flexible displays and sensors that can be used in a range of human-machine interface products, including foldable smartphones and other smart devices.
The company withdrew its STAR market IPO application in February this year. According to Royole, the company suspended its stock market listing process because the company has “three types of shareholders” that may not comply with listing requirements. The company had not achieved profitability when it applied for the IPO.