In Guangdong, Shenzhen, a joint venture enterprise with over twenty years of history officially announced its closure on September 23 due to the break of the funding chain and a sudden decrease in orders, leading to the dismissal of hundreds of company employees. Industry insiders pointed out that this dissolution reflects the challenges faced by small and medium-sized manufacturing companies in Guangdong under the general contraction of foreign trade environment.
Recently, news of the shutdown and closure of Shenzhen Jinyao Lai Technology Co., Ltd. located in Bao’an District, Shenzhen, circulated on Chinese social media platforms. The full announcement from the company stated: “Due to continued losses in recent years and operational difficulties, it has become unsustainable. After a thorough evaluation by the shareholders and management, the situation could not be reversed, thus the decision was made to cease operations and dissolve the company starting from September 23, 2025. Employment contracts with all employees will be terminated on that day, with wages settled up to the current month, and social security and provident fund contributions paid up to the current month. The company will sign “Labor Contract Negotiation Termination Agreements” with employees in batches in the meeting room and provide corresponding economic compensation schemes based on the employees’ length of service and income.”
The company, which has been in operation for over twenty years, mainly engaged in metal surface treatment (vacuum physical vapor deposition, PVD film processing).
One dismissed female worker, Huang Li (pseudonym), told reporters that the company offered reasonable compensation to the employees, which she found comforting. However, with a monthly rent of over two thousand yuan for her rented accommodation, her financial burden increased, stating, “On October 1st, the landlord has already urged me twice to pay the rent, I don’t know how much longer I can hold on.”
Another female worker from Hunan mentioned her plans to return home early: “I have two children at home who need to go to school, I can’t stay in Shenzhen indefinitely. I will be going back home next week. It’s very difficult to find a job in Shenzhen now.”
In online comment sections, many employees and netizens expressed their opinions on the company’s dissolution. A netizen, Huang Mingyi (username), expressed hopes of finding a better job and believed that the company would devise a reasonable plan to resettle employees. There were also comments like, “Your factory, which was so big, has also closed. ” Another netizen said, “Our company closed down in 2019, and yours only closed in 2025.”
Established in 1998, Shenzhen Jinyao Lai Technology Co., Ltd. is a Sino-Hong Kong joint venture company, with its parent company being Hong Kong Ying Tong Enterprise. The company mainly focused on PVD film technology, with its products widely used in watches, mobile phones, and smart wearable devices. The company previously had over thirty magnetron sputtering devices and more than three hundred employees, but they have gradually ceased operation since this summer. According to multiple sources, the company has entered into the liquidation process, and issues regarding employee resettlement and compensation are still being handled.
On September 26, the company also released a dormitory eviction notice, requiring employees to vacate within the specified time. The notice stated that the company would provide dormitories to employees until October 20, 2025, and all personnel must complete the check-out procedures by 6 p.m. on that day, clearing personal belongings and returning keys. The notice was signed by the Human Resources Department of Shenzhen Jinyao Lai Technology Co., Ltd. The dates on the two company notices were both September 26, 2025, with the dormitory eviction deadline being clearly set as 6 p.m. on October 20, 2025.
The closure of Jinyao Lai is just a microcosm of the numerous company shutdowns in Guangdong. Since the beginning of this year, several large, long-established companies in Guangdong have either gone bankrupt or ceased operations. A Mr. Bi, who used to manage a large shoe factory in Shenzhen, told reporters, “In the first half of this year, there were dozens of enterprises shut down, closed, and undergoing liquidation in Shenzhen, and hundreds across Guangdong province, including foreign companies that have been operating in China for over thirty years.”
He further cautioned that in the next three months, more companies in Guangdong may close down: “Given the current situation, seventy to eighty percent of companies in Guangdong may not survive. Haven’t you seen that the central government is about to introduce measures to support private enterprises? It’s simply saying one thing and doing another.”
An academic told reporters that Guangdong’s manufacturing industry has long relied on foreign trade and low-cost competition, with companies generally lacking risk resistance. Once orders shrink or funding is blocked, small and medium-sized enterprises are the first to be hit. “This wave of closures will only increase, and more factories will be shutting down in the future.”
Reporters tried to contact Jinyao Lai Technology and its parent company, Hong Kong Ying Tong Enterprise, but no one answered the calls. As of the time of writing, relevant departments in Bao’an District, Shenzhen, have not responded to inquiries.