(Yicai) June 11 -- Huawei Technologies refuted an online rumor claiming that the telecoms giant once planned to acquire Royole Technologies, a Chinese pioneer of foldable smartphones.

Shenzhen-based Huawei yesterday announced the information is untrue as the maker of handsets, watches, and laptops has never put forward a plan to invest in the troubled developer of FlexPai, a tablet-sized foldable phone launched as early as 2018.

Liu Shuwei, an independent director at Royole, said on June 9 on her WeChat Moments that Huawei proposed investing in Royole in the early days but the target firm refused and chose independent product development and manufacturing instead. Royole's founder Liu Zihong, a Stanford alumnus, is not capable of leading Royole to survive because he is a scientist and lacks the know-how and experience to operate and manage a business, she added.

After years of losses, Royole's bankruptcy case was accepted by a court in Shenzhen on May 15. The first creditors' meeting is scheduled to take place on Sept. 13, according to a court announcement dated June 6. That means that Royole could still restructure and continue operations.

Founded in 2012, Royole launched FlexPai ahead of rivals Samsung Electronics and Huawei while spending CNY10 billion (USD1.4 billion) on building a production capacity of 50 million screens per year. It gained investments from renowned financiers IDG Capital, Citic Capital, and Shenzhen Capital Group. Founder Liu Zihong is Royole's biggest shareholder with a nearly 39 percent stake.

Editor: Emmi Laine