Nearly a year after the IPO failure of the impact science and innovation board, Rouyu ushered in a difficult time that has never been seen before. On December 8, Caixin reported that Rouyu had recently fallen into financial difficulties and had suspended the payment of employees' salaries on a large scale. The salary of several employees of Rouyu in September is only partially paid, and the salary in October is fully suspended. In addition, several Ruoyu technology suppliers confirmed to the interface news that Ruoyu still has a large amount of payment arrears. This month, an anonymous user disclosed on Zhihu that Rouyu had defaulted on the salary of all employees since October this year, and only 40% of the salary was paid in September. At the staff meeting held on November 30, Liu Zihong, CEO of Rouyu, frankly explained the current capital situation to the employees, and said that there were external reasons for the failure of the two IPOs. He mentioned: "the new round of financing may arrive in December or January. In addition, he also said that musk failed many times to establish Tesla, and Rouyu has only experienced a small setback.". A Rouyu employee confirmed the authenticity of the above disclosure to the interface news. He said that since the failure of the impact on the science and innovation board, the company's finance has been in a tight state, but "it still shows the abundant side of capital contribution". At present, there are still dozens of posts on Rouyu's official website, and the latest update of the recruitment brochures is on December 8. On December 8, Liu Zihong wrote in his circle of friends: "in fact, it's not easy for anyone to have it. In the darkest hour of life, don't expect to provide charcoal in the snow. The only thing you can do is to stick to it and never give up. " In view of the current salary arrears, many media quoted Rouyu insiders as saying: "at present, the company operates normally, the employees are emotionally stable and are working normally. The company has promised corresponding cash compensation and option compensation to the employees in arrears." However, the aforementioned employees of Rouyu told the interface news that they "no longer believe in the company's pie". If the wages have been in arrears, they will take rights protection measures. Full flexible screen manufacturer Rouyu technology was once the darling of capital. Its innovative ultra-low temperature non silicon process integration technology was once known as the "domestic light" to break Samsung's monopoly. However, while constantly financing, Rouyu has always been difficult to make a profit. Its technical originality and mass production capacity have also been widely questioned, and even labeled as a "ppt company". In the past two years, Rouyu has impacted the IPO twice, but failed in the end. Until today, the problem of Rouyu capital chain has been completely exposed to the public. What happened to this star company? Financial difficulties Tianyancha information shows that the last financing of Rouyu occurred in the fourth quarter of 2019, with a financing of US $300 million and a valuation of US $6 billion. Since then, Rouyu has no publicly available financing. The former employees of Rouyu disclosed to the interface news that the shortage of funds of Rouyu has existed for a long time. Since 2018, the year-end bonus has been delayed or not paid, and the company's benefits have begun to decrease accordingly. Previously, the salary payment has been normal, but since October this year, the salary has not been paid. In the whole process, some employees left one after another. From the prospectus of Rouyu, we can also see the tension of its financial situation. In the second half of 2019, in order to meet the company's temporary short-term capital needs, senior executives such as Liu Zihong, Yu Xiaojun and fan Junchao borrowed 2.16 million yuan from the company to "rescue", but the company has repaid this amount before listing. After the failure of the listing of the science and innovation board, the funding gap of Rouyu became more serious. Interface news found that in October this year, Ruoyu technology and its CEO Liu Zihong were executed by the Shenzhen intermediate people's court to restrict consumption due to arrears in payment to suppliers. The judgment document shows that in a construction contract dispute case, Rouyu technology failed to perform the payment obligations determined in the effective legal document within the period specified in the execution notice. The applicant for execution is Shanghai Baoye Group Co., Ltd. The implementation target is 95031376 yuan, nearly 100 million yuan. The intersection between Rouyu technology and Shanghai Baoye group occurred five years ago. In December 2016, Shanghai Baoye group won the bid for the construction general contracting project of Shenzhen Rouyu generation 6 flexible display production line project. According to the official website of Shanghai Baoye group, this is the world's first class 6-generation display production line. The total construction area of the project is about 351379.23 square meters and the construction period is 430 calendar days. The group mainly contracts the construction of plants. This kind of 6-generation display production line was officially lit and put into operation in 2018. At that time, Rouyu announced that the full production scale of the production line exceeded 50 million flexible displays per year, which can support a large number of industrial applications, and has carried out extensive cooperation with industry partners at home and abroad. However, according to the prospectus submitted by Rouyu to the Shanghai Stock Exchange, in the first half of 2018-2020, the output of Rouyu's "full flexible display screen" was only 7748, 314036 and 48563, and the production line capacity did not meet expectations. At present, the names of Ruoyu technology and Liu Zihong have been removed from China executive information disclosure network. However, Rouyu's financial dilemma is still difficult to solve. At least for now, it is difficult for Rouyu to "make blood". Rouyu announced that the company adopts two different business models: to B and to C. In the field of to B, Rouyu has LV, Airbus, ZTE and other customers to provide them with flexible screen products; To C launched products such as rowrite handwritten book, folding screen mobile phone and head display, which are sold online and offline. However, at present, there has been no progress in cooperation between the above customers and Rouyu for a long time. To C, the only direct store of Rouyu in China, Shenzhen airport store, has been cancelled. A local dealer contacted by the interface news also said that at present, it no longer acts as an agent for Rouyu products. Two listing failures Rouyu has been seeking IPO, but it has been frequently blocked. According to Bloomberg, at the beginning of 2020, Rouyu technology has quietly submitted an IPO application in the United States to raise about $1 billion, but this plan finally ran aground. For the reason why the plan was suspended in US stocks, Liu Zihong explained to internal employees that it was the impact of the epidemic. After giving up the listing of US stocks, Rouyu moved to the science and Innovation Board at the end of last year. The prospectus shows that this round of IPO plans to raise 14.434 billion yuan, with a very high fund-raising amount. A Rouyu employee said that the company was extremely cautious about the listing and had been paying close attention to the regulatory trend and maintaining communication. But just two months later, Rouyu suddenly applied to the Shanghai Stock Exchange to withdraw her IPO, and the second impact on the listing also failed. Rouyu once explained the reasons for withdrawing the IPO application: "due to the eligibility of" three types of shareholders "at the direct level of the shareholder structure, it needs to be further demonstrated. Considering the company's development strategy, it is decided to suspend the application for listing on the science and innovation board." The so-called three types of shareholders refer to contractual private equity funds, asset management plans and trust plans. According to the document issued by Shanghai Stock Exchange, the controlling shareholder, actual controller and the largest shareholder of the company applying for listing on the science and Innovation Board shall not belong to the "three types of shareholders", and shall disclose the information of the "three types of shareholders" as required. A person who once participated in the listing guidance of Rouyu technology disclosed to the interface news that Rouyu's cancellation of the listing of the science and innovation board is not just the reason for the three types of shareholders. "According to the previous communication, the three types of shareholders are also OK as long as they meet the conditions of information disclosure. But later, affected by the ant incident, the supervision was tightened and the scale of operation became smaller. It's strange not to withdraw." "Tightening supervision" means that on January 31, the CSRC and the China Securities Association disclosed that they had organized and completed the lottery for the random inspection of the quality of information disclosure of 20 initial enterprises. This batch of companies participating in the lottery were 407 enterprises on the science and innovation board and gem accepted before January 30, 2021, and companies such as Ruoyu technology and papaya mobile were selected. Affected by this, more than 30 enterprises "voluntarily withdrew" IPO applications throughout February. At the same time, the prospectus data disclosed by Rouyu was also questioned as fake. According to Netease Qingliu studio, a company whose customer is suspected to be a college teacher disclosed by Rouyu purchased 30 million products from Rouyu, but refused to disclose what they bought. Some customers were directly accused of being "liars". According to the interface news, after the failure of the listing of the science and innovation board, Rouyu considered overseas listing, which means Nasdaq, but the plan failed. The end of Rouyu Rouyu has become popular in the industry because of its unique flexible screen R & D technology route (ultra-low temperature non silicon process integration technology). Rouyu said that compared with the mainstream Samsung line, its line has lower production cost and higher product reliability, but the outside world generally questioned that the line is difficult to mass produce. What is the quality of Rouyu technology? An engineer who was responsible for screen research and development in Rouyu told the interface news that Rouyu does have its own technology, but the ultra-low temperature non silicon process integration technology, which is regarded as its greatest advantage, is essentially igzo + evaporation OLED process, which has been done for a long time and is not exclusive to Rouyu. He recalled: "in 2017, Rouyu started to build a 6-generation display production line in Shenzhen. At that time, I felt that the company really wanted to start doing things, but I had been working in it and had seen the equipment inside. It didn't look like it was going to be bigger, because I didn't have the ability to mass produce." The person in charge of a panel manufacturer commented: "among domestic manufacturers, Rouyu's R & D capacity is slightly stronger than Tianma Hehui optoelectronics, but its mass production capacity is the last, and there is a big gap with other manufacturers. Because the R & D line is a technical route from completely different latitudes to make concept products and mass production products to meet market demand." Some people in the industry disclosed to the interface news that Rouyu has been spending high prices to recruit R & D personnel from friends in recent years, offering twice or even triple the salary. "Many people are attracted to Rouyu by salary, and there are various option commitments. Although you don't recognize its route, you can feel that it still wants to make products." However, due to the low mass production capacity, it is always difficult for Rouyu to form a positive production and marketing cycle, which is also the main reason for Rouyu's long-term loss. However, a Shenzhen investor familiar with Rouyu told the interface news that the essential reason why Rouyu has come to today is not the wrong choice of technical route, but that it is no longer a product company. "The essence of Rouyu is a capital Bureau," he said. "Liu Zihong's identity as Dr. Stanford, coupled with Rouyu's technical concept, is the most suitable combination for angel investors. Liu doesn't want to make products, but he was held out by capital at the beginning, and then countless capital pushed him to go, pushed him to go public, and turned back now." The investor said. According to incomplete statistics, since its establishment in 2012, Rouyu has experienced 13 rounds of financing, including Shenzhen Venture Capital, Songhe capital, IDG capital, CITIC Capital, SF holdings, Yingke capital, Yuexiu industry fund, etc. The above investors said that the investors who withdrew early had made a lot of money, but the subsequent investors who were locked up were not so "lucky". From the prospectus, as of June 2020, Ruoyu technology has always been in a state of loss, and the range of loss has continued to expand in the past three years. Rouyu's risk has come. The above investors said that the current problem of Rouyu is not whether it is mass production or not, but to explain to the capital. "Rouyu may end up being acquired by state-owned assets. In addition, there is no way to go." He said. (Xinhua News Agency)