Eliza Wong
Key Points:
- Roman abruptly suspended production on July 7 without resolving wage disputes
- Five executives vanished from company systems since April
- Over 170,000 consumer refund requests now in processing backlog
- Employees protesting unpaid wages and benefits mounting legal action
- Refund delays prompting Ofo comparisons among Chinese consumers
The Day Production Stopped
On July 7, chaotic scenes unfolded at Roman’s Shenzhen headquarters as employees arrived to discover indefinite suspension notices. Packed belongings stacked near exits symbolized a production halt impacting China’s once-dominant power bank brand. Staff exchanged anxious stories in the lobby while clusters completed legal paperwork near the reception area.
Disappearing Leadership
Key executives Lei Guiqiang (雷桂强), Lei Canfeng (雷灿锋), Lei Guibin (雷桂斌), Li Qiuhua (李秋华), and Lei Canhuo (雷灿伙) quietly vanished from internal systems as early as April, leaving no operational chain of command. Middle management confirmed joining frontline employees in collective labor actions after executive communications ceased.
Unpaid Wages Escalate Crisis
Roman’s liquidity crisis extends beyond halted production. Multiple departments report non-payment of June salaries combined with unresolved allowances:
- Maternity benefits withheld from postpartum employees
- Accumulated overtime spanning Q1 2024
- Contractual annual bonuses
- Shift differentials for manufacturing crews
Legal Mobilization
Attorney authorization forms circulated across departments throughout the afternoon on July 7. Workers lined up to submit thumb-printed documents appointing Shenzhen labor-rights specialists for upcoming disputes. Sources indicate provincial labor authorities launched preliminary investigations.
Consumer Refund Avalanche
Parallel to employee turmoil, consumer refund portals logged over 170,000 backlogged requests following June’s product recalls. Taobao buyer Wang Jiawei observed his July 5 return application placed 177,124th in queue with projected 30-day processing.
The refund crisis demonstrates the fallout from safety recalls affecting specific CB666 and PH80 power bank batches. Chinese consumer association records show 15,200+ Roman complaints since January.
System-Crawling Delays
Roman’s official support channels currently display estimated refund positions plus countdown timers. Social platform Xiaohongshu shows screenshots revealing:
- Average wait positions jump 35,000/day
- Refund interfaces freezing around 100,000 entries
- Confirmation emails delayed by 72+ hours
The Ofo Comparison Resurfaces
Consumers immediately referenced the ghost of Ofo, China’s infamous bike-share operator whose 2018 bankruptcy stranded over 16 million deposit requests. Similarities accumulate:
- Pre-collapse refund queues extending beyond 100,000
- Themed emojis appearing on Zhihu forums
- Comparative refund-timer memes circulating on WeChat
The Roman refund crisis triggers hard lessons about mainland China’s consumer electronics supply chain. Execution failures stem primarily from uncontrolled cashflow strains rather than market positioning. This Roman refund crisis now parallels previous meltdowns where regulatory interventions arrived too late.
Why Ofo Haunts Suppliers
Financial analysts note systemic weaknesses affecting both companies:
- Over-reliance on deposit-funded growth models
- Failure to segregate operational/reserve capital
- Executive exits preceding precipitated collapses
- Consumer loyalty exploited as liquidation cushion
Cross-Sector Implications
The unfolding crisis highlights weaknesses in China’s electronics warranty ecosystem. Guangdong provincial regulators recently announced deposit-protection measures requiring manufacturers to:
- Maintain escrow reserves matching warranty liabilities
- Submit quarterly independent audits
- Disclose CEO financial commitments
Regional Impact
Shenzhen manufacturing parks report tighter credit facilities for accessory producers since July 8. Three neighboring firms renegotiated supplier contracts while Shanghai traders noted shrinking power bank margins ahead of inventory corrections.
Resolution Pathways Emerge
Despite steep processing queues, some consumers received successful refund completions:
- Credit-card chargebacks for recent purchases
- Platform-intervention channels on JD.com
- Group mediation via provincial development zones
Roman’s remaining management hasn’t formally addressed operations suspended beyond July. Guangdong Commerce Bureau records list two active subsidiary registrations potentially holding liquidity resources.
This Roman refund crisis requires immediate triage strategies: documentation preservation meets urgent liquidity sourcing. Affected consumers should systematically archive evidence while employees pursue joint petitions.
The coming 30-day period determines whether Roman can avoid full insolvency proceedings. All stakeholders must verify transaction records through the National Enterprise Credit System. Decisive action now could prevent another Ofo-scale economic domino.
