Royole Technologies and Its Founder Liu Zihong The Inside Story
TapTechNews, June 10. On the evening of June 9, Liu Shuwei, the former independent director of Royole Technologies and director of the China Enterprise Research Center at Central University of Finance and Economics, published a summary of her speech at a closed-door meeting in her WeChat Moments, revealing many details about Royole Technologies and its founder, Liu Zihong.
It is reported that the topic of the closed-door meeting is 'The High-quality Development of Chinese Listed Companies'. In her speech, Liu Shuwei said, '(Royole Technologies' founder Liu Zihong sincerely hopes that the company will succeed, and it is unfair to view him as a fraud.'
She believes that Liu Zihong's problem lies in that he exceeded his ability circle, and the capital market invested in his behavior beyond the ability circle, resulting in investment failure. Liu Zihong is a scientist, but he does not have the basic knowledge and experience of managing a company.
According to Liu Shuwei, in the early days of Royole Technologies' founding, Huawei once proposed to invest in Royole Technologies to exclusively supply flexible screens for Huawei, but Royole Technologies refused Huawei's investment. Liu Zihong hopes that Royole will be like Samsung, independently completing the development of all products and independently manufacturing all products, which clearly exceeds his ability circle.
She said to Liu Zihong:
The only way to save Royole Technologies is for him to withdraw from the management layer and focus on the research of flexible technologies. If he does not agree to this request, then Royole Technologies may face bankruptcy. If he chooses to withdraw from the management layer, he will still retain his shares in Royole Technologies. If he insists on not withdrawing from the management layer, industrial capital will not enter, Royole Technologies will go bankrupt, and he may lose everything, and investors will also suffer losses. Unfortunately, in the end, Liu Zihong chose not to agree to this request, which led to the current situation.
In March of this year, rumors of Royole Technologies' bankruptcy were once circulated in the market. In response to this, Royole Technologies issued a statement on April 1 stating that the company has never actively applied for bankruptcy and has not entered the bankruptcy process, and the enterprise is still in operation. However, on June 6, the Shenzhen Intermediate People's Court issued an announcement that it has accepted the bankruptcy liquidation case of Shenzhen Royole Technologies Co., Ltd. and has designated a trustee.
TapTechNews Attached Part of Liu Shuwei's Speech:
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'Royole Technologies, the Former Unicorn and the Pioneer of Foldable Phones, the Bankruptcy Liquidation Case Accepted'