In April 2013, Red Flag president Jia Dong apparently told a staff meeting that wages couldn’t be released, and by the end of the year the firm had to close its HQ in Beijing’s Haidian district after being unable to pay rent and utilities.
Staff are now turning their attention to Red Flag’s major shareholder, the Institute of Software at the Chinese Academy of Sciences (CAS), to recoup unpaid wages which now total almost 15 million yuan (£1.5m).