Royole Receives Cash Injection, Paying Salary Arrears
Image Source: Visual China
BEIJING, May 7 (TMTPOST) — Chinese flexible display maker Royole Corporation has started paying delayed salaries to its employees, Jiemian reported, citing several Royole employees.
A number of employees of Royole told Jiemian that they had received all the delayed salary from the company on Friday. However, salary payments have only been made to current employees and former employees who have already completed the resignation process but did not choose to go for labor arbitration.
Royole has not disclosed the source of the cash injection. Sources claimed that the company was able to secure loans from the bank. The claim has not been confirmed by an official source.
Since late 2021, Royole has been struggling with cash bleed, delaying salary payments to employees for nearly six months. The company had not been able to pay its suppliers on time either. In early April this year, it was reported that Royole was unable to pay its employees again. Some of the company employees were on leave, leaving only a small proportion of the production lines running.
Last month, Royole’s independent board member Liu Shuwei explained that the company was hit by a cash crunch because it did not have enough time to commercialize its technological innovations. According to Liu, Royole only completed some of its technological innovations in the past two years. The company, unfortunately, started to suffer from cash bleed before it could explore the market and generate enough cash flow, Liu said. The cash bleed disrupted Royole’s production of flexible displays and the company was therefore unable to complete orders from clients such as Airbus SE. The company had not been able to engage in research and development as well, Liu said.
Liu also urged the government to provide financial support for Royole to solve its cash crunch issue. “I suggest that the government could help Royole solve its cash shortage problem, helping the company find strategic investors,” Liu said, stating that it is important because Royole can help explore the application of flexible display technologies in China.
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