Liu Shuwei is very lonely at the moment

Editor’s note: This article is from WeChat official account ID:F-Jinjiao, author: Wang Yisen, editor: Jiao ye, authorized by the reproduced state.

After a year and a half of silence, Liu Shuwei suddenly sent a message on WeChat official account and micro-blog on two consecutive days, calling on all parties to rescue the crumbling soft Yu technology. She suggested that governments at all levels actively help Ruoyu technology solve the shortage of funds and help Ruoyu technology introduce strategic investors, so as to explore the application market of flexible technology in China.

Liu Shuwei was once known as “the most dangerous woman in China’s stock market”. He became famous in World War I because he broke the stock market myth in 2001. Later, he took the lead in exposing the LETV scam. As the independent director of Vanke, he tried his best to fight against Baoneng in the “battle of Baowan”, causing a lot of controversy. In recent years, she has often been mentioned as “Dong Mingzhu’s best friend”.

At present, Liu Shuwei is the director and researcher of the China Enterprise Research Center of the Central University of Finance and economics, and serves as an independent director of many companies, including Rouyu technology, Vanke, Gree Electric Appliance and China Optics.

It’s not what Liu Shuwei wants to save, even if it’s technology.

Ruoyu technology was founded in Shenzhen in 2012. At present, its products are mainly full flexible display screen, full flexible sensor, folding screen mobile phone flexpai, flexible intelligent handwriting rowrite, etc.

As the former “unicorn” in the field of flexible screen, Rouyu technology has been on the hot search for many times recently due to salary arrears. According to media reports, as early as the end of 2021, there was news that Ruoyu technology defaulted on employees’ salaries and the company’s production line began to maintain minimum operation. Since the beginning of 2022, the number of employees of Ruoyu technology has been decreasing from 1800 to about 700.

After LETV, it is probably Rouyu technology that is the most suspected swindler company.

In 2014, due to its unique flexible screen R & D technology route (ultra-low temperature non silicon process integration technology ult-nssp), Ruoyu technology created the world record for the thinnest color full flexible display screen in the world and became popular rapidly in the industry.

Since its establishment in 2012, Ruoyu technology has experienced 13 rounds of financing, with a total financing of about 60billion yuan. Among the investors, there are many star capitals such as Shenzhen Venture Capital, Songhe capital and IDG, with a pre IPO valuation of up to 6billion dollars.

While continuously financing, it is always difficult for Rouyu technology to make a profit. Since its establishment, the screen of Ruoyu technology has not appeared in the products of any mainstream mobile phone manufacturers, and the sales of folding screen mobile phones flexpai and flexible smart handwritten book rowrite launched by Ruoyu technology are also limited. Slowly, the technical strength, mass production capacity and customer acquisition capacity of Ruoyu technology have been questioned more and more.

On December 31, 2020, Rouyu technology applied for the IPO of the science and innovation board. According to the prospectus, from 2017 to 2019 and the first half of 2020, the operating revenue of Ruoyu technology was 64.7267 million yuan, 110 million yuan, 230 million yuan and 120 million yuan respectively, and the corresponding net profit attributable to the parent was - 360 million yuan, - 800 million yuan, - 1.07 billion yuan and - 960 million yuan respectively, but the cumulative loss reached 3.195 billion yuan.

For the main reason for the continuous loss, Rouyu technology explained: “the product is still in the stage of market expansion, the sales scale is small, and a lot of money needs to be invested in R & D.”

But after that, Ruoyu technology voluntarily withdrew its IPO application. On the eve of its active withdrawal of IPO application, Rouyu technology was selected by China Securities Association and included in the random inspection list of enterprise information disclosure quality.

Insiders said that when an enterprise IPO, if the issuer and its intermediaries have a high level of fraud and the application materials are well prepared, the chances of muddling through may also exist. However, the on-site inspection is very strict. Most of the selected enterprises’ IPOs cannot pass, and the intermediaries involved will also be severely punished after they are found to have problems. Therefore, for enterprises, instead of risking their lives to break through the customs, they might as well take the initiative to withdraw their listing application and apply again when they are ready.

According to the prospectus, some media have publicly questioned that Rouyu technology included the depreciation of large fixed assets that should have been included in the production cost in the first half of 2020 in the R & D expenses, resulting in serious exaggeration of the R & D expenses, falsely reducing the production cost, distorting its current gross profit margin and disturbing investors. It is also pointed out that it is difficult to clarify the relationship between Rouyu technology and its customers, or there are related party transactions between the two sides.

Moreover, in January 2019, Rouyu technology mentioned that “the customer orders signed in the last quarter were 4 billion yuan”, and there was no trace of these 4 billion yuan orders in its prospectus.

It is also after withdrawing the IPO application that the shortage of funds of Rouyu technology began to appear.

In his article of support, Liu Shuwei responded to the public’s doubts about Ruoyu technology.

Liu Shuwei believes that the main reason why Ruoyu technology is in trouble is that the three founders of Ruoyu technology graduated from Tsinghua University, obtained a doctorate from Stanford University or engaged in post doctoral research. They master the world’s leading flexible technology, but they lack experience in how to explore the market, create sufficient operating cash flow and ensure the continuous operation of the company.

The flexible screen production line was put into operation in 2018, and the R & D achievements of some applied innovative technologies were completed in nearly one or two years. Therefore, before Ruoyu technology had time to explore the market and create sufficient operating cash flow, the company had a shortage of funds, resulting in the failure of the normal operation of the flexible screen production line, the failure to complete the orders of French Airbus and other products, and the failure of continuous R & D.

It means that Ruoyu technology is not good at developing customers and company management, which leads to the current dilemma, but its technology is very advanced and valuable. We should save it.

To some extent, some profile information should prove the view that the founders of Ruoyu technology are not good at company management.

According to Nandu weekly, according to the analysis of investors familiar with Rouyu technology, choosing self built production lines is one of the important factors leading Rouyu technology to the road of loss. The financing obtained by Rouyu technology before has basically been invested in the self built production line, and it is still in the dilemma of “lack of money”. Liu Zihong, who was born in technology, underestimated the money burning speed of the self built production line. Even with 10 billion funds, the self built production line can burn up quickly.

Liu Shuwei also said in the article