Whether it is the B-side or the C-side, the business that makes money is the good business.
No matter how luxurious the capitalist lineup is, it will not allow companies to escape the ultimate questioning of the market.
According to Bloomberg, citing an unnamed person familiar with the matter, Chinese flexible display manufacturer Royole Technology has shelved its US listing plan and plans to submit an application for the Science and Technology Innovation Board as early as December. Funding up to 12 billion yuan RMB. At the time of listing, Rouyu Technology’s valuation may reach 52.5 billion yuan or more.
Since this year, there have been many rumors about the listing of Royole Technology.
At the beginning of the year, foreign media reported that Royole Technology had secretly applied for an IPO in the United States and planned to raise approximately US$1 billion. Then there was news that Royole Technology had shelved its plan to go public in the United States and was considering an IPO in China. CITIC Securities was hired in early August to serve as its A-share listing counseling agency.
Since the rumors of listing, Royole Technology has been facing more and more doubts. The core of these questions is: What is the commercialization ability of Royole Technology?
Royole Technology was established in 2012 and independently produces fully flexible displays and fully flexible sensors, as well as flexible screen folding mobile phones and other smart devices. Prior to this, it has received investment from many well-known institutions including IDG Capital, Poly Capital, and Shenzhen Venture Capital. In addition to the investment, Rouyu Technology has also received various government subsidies.
However, the obvious contrast with the high financing amount is that Currently, Rouyu Technology is still in the selling concept stage, and there are fewer products actually launched.
In October 2018, earlier than Huawei and Samsung, Royole Technology launched the world’s first flexible screen folding mobile phone FlexPai. However, due to insufficient brand influence and production capacity, the sales volume of Roupai was quite bleak. .
Until 2019, with the entry of giants such as Huawei and Samsung, folding screen mobile phones began to attract public attention.
However, the high price hinders the popularization of folding screen mobile phones in the C-end consumer market. At present, folding screen mobile phones are still excluded from the mainstream track. A third-party statistical report shows that the shipment of foldable flexible mobile phone screens in 2019 is only about 500,000 pieces.
It can be seen that it is not only limited to the level of technological breakthroughs, the industry is in its infancy, and the entry of mobile phone giants is a problem that Rouyu Technology will face in the future.
For this reason, in addition to the C-side folding screen phones, Rouyu Technology has also begun to explore more flexible screen application scenarios. Focusing on the B-side, Royole Technology is trying to apply flexible display technology in the fields of media, transportation, sports, fashion, education and office.
From the current point of view, Rouyu Technology’s performance is not impressive whether it is C-end or B-end.
Founder Liu Zihong once told the media thatIt is not realistic for enterprises with high-level technological innovation to make profits within one or two years, and once large-scale applications arrive, their profitability will also increase exponentially. Before achieving profitability, Royole’s primary task is to run a commercialization path recognized by the market. And Liu Zihong admitsAt this stage, more cooperation The stage for partners to jointly build an ecological and educational market.