Guangdong state-owned enterprise issued an “internal notice” recently, indicating that due to financial difficulties, the company has been only providing basic salaries since October this year, with the remaining wages and benefits to be paid later. The company’s predicament has raised concerns among employees about whether salaries will further be delayed. Some employees have taken to online platforms to reflect on their personal situations and seek assistance.
Guangdong Guanyue Luqiao Limited Liability Company, a Chinese state-owned enterprise, issued a salary adjustment notice to employees on November 21, 2025. The company stated that starting from October 2025, it would prioritize paying the “part of the salary that guarantees basic living expenses” each month, while the rest would be paid when the financial situation improves. Three days later, the company sent a thank-you letter to employees, mentioning that the management was originally concerned about potential dissent from employees, but the employee reactions were described as “calm,” with the silence being interpreted as the employees’ “deepest trust” in the company.
Several employees of the company reposted the “internal notice” on social media platforms, expressing that the company is facing operational difficulties and that the atmosphere within the company, from top to bottom, is tense. One employee surnamed Zhang, who claimed to have worked at the company for nearly a decade, told reporters that many colleagues were worried about the reduction in income after the notice was issued. While there are opinions among employees, few are willing to express them openly, primarily out of concern that finding a new job would be more challenging, so they prefer to remain silent for now.
Another employee working in a technical position informed reporters that the company has undergone several rounds of internal adjustments in the past two to three years, including position mergers, departmental layoffs, and staff reductions, leading to frequent changes in the overall salary structure. Some employees felt unsettled after receiving the notice but lacked official channels to voice their concerns.
When reporters called the Human Resources Department of Guangdong Guanyue Luqiao Limited Liability Company to inquire about the salary arrears issue, the person who answered the phone confirmed that the company had sent out messages to encourage employees but declined further interviews.
Employee Zhang told reporters that the current salary arrangement has impacted many families, especially those with loans. He mentioned that many employees dare not oppose the company’s decisions; however, the company interprets the silence as support, which may not truly reflect the actual situation. He expressed that many feel helpless, leading some to share the company’s notice online.
According to public records, Guangdong Guanyue Luqiao Limited Liability Company (Guanyue Luqiao) was established in 1997 and was previously affiliated with the Guangdong Provincial Department of Transportation. In 2012, the enterprise was transformed into a state-owned mixed-ownership company. The company’s shareholders include Guanyue Group Co., Ltd. (holding about 87.36% of the shares), maintaining control through state-owned capital. The company is a large construction enterprise with multiple national honors and special qualifications, operating in fields such as engineering construction, machinery equipment leasing, and material sales.
Following the Meidagao Expressway collapse incident on May 1st last year, the credit rating of Guanyue Luqiao was downgraded from “AA” to “A” by the Guangdong Provincial Department of Transportation, affecting its bidding capability in the infrastructure sector.
Mr. Li Yang, an engineering consulting professional in Guangdong, told reporters that in recent years, there have been changes in the overall investment growth rate in infrastructure by the Chinese authorities, increasing competitive pressure on privately operated contracting enterprises. “Mainly reflected in tight financial chains and reduced core business, all of which could affect the arrangement of employee salaries by companies.”
Li Yang stated that the situation of Guangdong Guanyue Luqiao Company reflects that, following private enterprises, state-owned enterprises are also facing operational difficulties. “With the current economic downturn, whether private or state-owned enterprises, they cannot escape this disaster. I foresee a challenging environment next year.”
Researcher Liu Hai, specializing in Chinese labor policies, mentioned to reporters that employees’ reluctance to openly express views regarding delayed salaries and benefits does not necessarily indicate stability within the company. Prolonged wage uncertainties could affect team structures and personnel mobility. He believes that in the absence of effective communication mechanisms during policy adjustments, employees may have limited understanding of the situation.
Records from the industrial and commercial registrations show continuous changes in the management structure of Guanyue Luqiao in recent years, with the company’s scale shrinking annually. Three employees confirmed to reporters that from 2023 to 2025, the company had laid off over a hundred employees, and some former business units are no longer retained.
Internally within the company, the adjustment of the salary system becomes a primary concern for employees in recent times. Several employees informed reporters that they have not yet received a timetable for the delayed salary payments, nor has the company provided further clarification on the adjustment period.