ROMOSS halts operations after massive power bank recall sparks financial crisis

ROMOSS Technology, once China’s top-selling power bank brand, has suspended all operations for six months, effective July 7, amid a financial crisis triggered by the recall of nearly half a million fire-prone devices.

The Shenzhen-based company confirmed the production halt through an internal notice circulated early Sunday, with only recall-related staff retaining employment.

Affected workers will receive full salaries for July before facing pay cuts — reduced to 80 percent of Guangdong province’s minimum wage from August onward. Social insurance contributions will similarly be calculated at minimum wage levels during the suspension period, according to the internal notice.

This drastic measure follows ROMOSS’s June 16 recall of 491,745 power banks (models PAC20-272, PAC20-392, PLT20A-152) manufactured between June 2023 and July 2024.

The company identified "substandard separator materials in certain battery cells" as creating overheating hazards that could "ignite under extreme conditions."

The admission validated months of escalating safety incidents, including multiple fires at Beijing university campuses, where at least 21 institutions banned ROMOSS products after tests revealed charging temperatures reaching as high as 87 degrees Celsius, five times higher than industry norms.

The crisis reached critical levels when a Hong Kong Airlines flight had to divert in March 2025 after a ROMOSS power bank caught fire mid-air, despite bearing aviation safety certifications. This incident prompted nationwide transportation bans and ultimately triggered regulatory intervention.

On June 28, China's Civil Aviation Administration banned all power banks without visible 3C (China Compulsory Certification) labels or those on recall lists. The policy currently applies to domestic flights.

China’s market watchdog suspended ROMOSS’s mandatory 3C quality certifications in late June, paralyzing sales channels overnight.

For the company that commanded 40 percent of China’s online power bank market and ranked No.1 on Tmall for a decade, the collapse has been precipitous.