(Yicai Global) April 8 -- Royole Technologies, a Chinese manufacturer of flexible displays, has notified employees that they will be put on three months leave from this month and will receive a minimum salary, Yicai Global learned.

Royole has not paid employees, including vice president-level executives, since the middle of last year, staff said, adding that except for the last normal salary paid in August 2021, the others have been late or not paid in full. Many have not been remunerated since December, they noted

Founded in 2012, Royole lacks stable business partners, product channels, and funds. Since February last year, when the Shenzhen-based company withdrew its application to go public in Shanghai, it has been strapped for cash.

Founder and Chairman Liu Zihong forwarded a statement to reporters, clarifying that many employees are still on duty and that “scientific and technologic innovations need more positive forces.” But the statement did not respond to inquiries about Royole’s financial situation.

A source close to the company said that institutions have contacted the company and found out there is a shortage of materials on the production line, but the product yield rate was higher than expected, so its fundraising situation will improve in the future.

Editor: Futura Costaglione