(Yicai) Nov. 29 -- A Shenzhen-based panel manufacturer is considering bidding for the equipment and assets of Royole, according to a person close to the bankrupt Chinese developer of folding smartphone screens.

The potential bidder has not previously ventured into the organic light-emitting diode field, the source said, asking that it not be identified because the matter is private. The company declined to comment when contacted by Yicai.

The assets in question are up for sale at a starting price of CNY1.2 billion (USD166 million) on an auction platform run by Alibaba Group Holding's Taobao. They include 12 properties in the Longgang district of Shenzhen and a batch of equipment.

Big display panel makers typically do not consider used equipment, as maintenance can be complicated, said Zhou Hua, chief analyst at Cinno Research.

Potential bidders must make a deposit of around CNY61.5 million (USD8.5 million). The auction, will commence at 10 a.m. on Dec. 14 and end at 10 a.m. the following day. As of 6.30 p.m. yesterday, no bidders had registered.

A court in Shenzhen accepted the Royole’s bankruptcy liquidation in May. Based on an investigation by the administrator, the firm could not pay its overdue debts and its assets were insufficient to cover its liabilities. 

Established in 2012, Royole was once worth more than CNY40 billion (USD5.5 billion). It launched the world's first foldable smartphone and invested over CNY10 billion to build an OLED panel production line in Shenzhen at the end of 2018, but ceased output in 2022.

Editor: Martin Kadiev