Royole, once a "capital darling," has been declared bankrupt.

On November 18, 2024, the Shenzhen Intermediate People's Court issued announcements stating that Shenzhen Royole Electronic Technology Co., Ltd., Shenzhen Royole Technology Co., Ltd., and Shenzhen Royole Display Technology Co., Ltd. were ruled bankrupt in accordance with the Enterprise Bankruptcy Law.

According to Tianyancha, both Royole Display and Royole Electronics are wholly-owned subsidiaries of Royole Technology. These three bankruptcy announcements by the Shenzhen Intermediate Court signify Royole Technology's official bankruptcy.

This ruling marks the end of the once $6 billion unicorn, which has now embarked on the path to bankruptcy liquidation.

Royole Technology, founded in 2012, focuses on the research, development, production, and sales of next-generation human-computer interaction technologies (novel displays and sensors) and related electronic products. Four years after its establishment, the company's market value exceeded $3 billion, making it one of the fastest-growing unicorn tech startups globally.

In 2014, the company successfully developed a world-record-breaking ultra-thin color flexible display with a thickness of only 0.01mm and a bending radius of 1mm. In 2015, Royole Technology invested billions in Shenzhen to establish a production line, which achieved mass production in 2018, consolidating its position in the industry. The company launched the Royole FlexPai 1 and FlexPai 2 foldable screen smartphones in 2018 and 2020, further expanding its presence in the consumer electronics market.

It is worth mentioning that Royole Technology's founder, Liu Zihong, entered Tsinghua University's Department of Electronic Engineering at the age of 17 as the top scorer in the science section of the college entrance examination in Fuzhou, Jiangxi Province. At 26, he earned a Ph.D. from Stanford University and worked at IBM for three years. In 2012, Liu Zihong, along with alumni Wei Peng and Fan Junchao, co-founded Royole Technology with an initial capital of 100,000 yuan. In 2022, Liu Zihong ranked 2115th on the Hurun Global Rich List with a wealth of 11 billion yuan.

Royole Technology once showed robust growth momentum. From August 2017 to November 2019, the company completed seven rounds of funding, with a valuation peaking at $6 billion, ranking first on the "Top 100 Chinese Technological Innovation Enterprises" list of China Entrepreneur in 2020.

However, in recent years, Royole Technology has faced a series of challenges, including failed IPOs, frozen equity, consumption restrictions, enforcement actions, and unpaid wages, which ultimately led to the company's bankruptcy.

The company's long-term financial imbalance was the primary cause of its financial distress. From 2017 to the first half of 2020, Royole Technology generated revenue of 500 million yuan but incurred net losses exceeding 3 billion yuan.

Additionally, Royole Technology's two unsuccessful attempts to go public deprived it of capital market financing opportunities, exacerbating investor concerns. On December 31, 2020, Royole Technology issued a prospectus for its listing on the STAR Market with an overall valuation of 57.7 billion yuan, sparking widespread market discussion.

Simultaneously, issues with the company's shareholder structure and management decisions hindered its ability to effectively respond to market changes and challenges.