Chinese Tech Giant Zhu Bajie Faces Wage Delays Amidst Financial Struggles
Chongqing, China – Zhu Bajie, a leading Chinese online serviceplatform known as the internet king of Chongqing, is facing mounting pressure after reports emerged of delayed wage payments to its employees. The company, which connectsbusinesses with service providers, has been struggling financially in recent years, with multiple failed attempts to go public.
The news of delayed wages first surfaced on socialmedia, with employees sharing screenshots of internal announcements detailing the staggered payment schedule. One screenshot showed that January wages were to be paid on February 23, 2024, while February wages were due on March 18, 2024. The delays continued throughout the year, with the latest announcement stating that wages would be paid on the 28th of each month starting in July 2024.
However, recent reportsindicate that the company has failed to meet even this revised schedule. Employees have taken to social media platforms to express their frustration, alleging that wages are now being withheld indefinitely. Some have reported that the company is only paying a portion of salaries to select employees, while others are being told to take unpaid leave.
In response to these allegations, a Zhu Bajie spokesperson confirmed that there have been recent delays in wage payments, attributing the issue to market challenges and ongoing organizational reforms. The spokesperson stated that these reforms have led to misunderstandings among some employees, resulting in the online dissemination of inaccurate information.
While the company acknowledges the financial strain it is facing, the extent of the wage delays and the company’s financial health remain unclear. Zhu Bajie’s financial woes are not new. The company has been attempting to go public since 2011, with multiple attempts to liston both domestic and international exchanges. However, these efforts have been unsuccessful, with the company citing a range of factors, including the uncertain timeline of the A-share market and the lengthy process of obtaining regulatory approvals.
Zhu Bajie’s financial performance has been a major hurdle in its pursuit of public listing.The company has reported consistent losses over the past several years, with a cumulative loss of 9.43 billion yuan (approximately $1.3 billion) in the past three and a half years. Its revenue has also been declining, further exacerbating its financial difficulties.
Adding to its financial woes,Zhu Bajie’s debt-to-asset ratio has consistently been above 100%, reaching a staggering 161.51% in 2021. This indicates that the company’s liabilities exceed its assets, placing it in a precarious financial position.
The recent wage delayshave raised concerns about the company’s long-term viability. While the company has attributed the delays to market challenges and internal reforms, the persistent financial struggles and mounting debt raise questions about its ability to recover and meet its financial obligations. The situation highlights the challenges faced by Chinese tech companies in a rapidly evolving market, particularly those operating in the competitive online service sector.
As Zhu Bajie navigates these turbulent waters, the future of the company and its employees remains uncertain. The coming months will be crucial in determining whether the company can overcome its financial challenges and regain its footing in the Chinese tech landscape.
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