Changzhou Xingyu Automotive Lighting Systems Co Ltd

The Shanghai Stock Exchange issued a regulatory work letter to Xingyu Automotive Lighting Systems on the evening of September 9, involving the listed company, directors, senior management, controlling shareholders, and actual controllers. Xingyu Automotive Lighting Systems released a correction announcement that evening, correcting an error in the age information of Vice Chairman Zhou Yuheng in its 2025 annual report, emphasizing that the error does not involve financial data and does not affect the authenticity of the periodic report. Recently, Xingyu Automotive Lighting Systems has drawn public attention due to the termination of offers to fresh graduates and internal accountability penalties. As of the close on September 9, the stock price was 75.20 yuan per share, down 3.05%, with a total market value of 21.48 billion yuan.

Xingyu Automotive Lighting Systems released its 2026 interim report. Total operating revenue was 6.884 billion yuan, and net profit attributable to the parent company was 669 million yuan, down 5.26% from the same period last year. Net cash inflow from operating activities was 991 million yuan, down 17.30% year on year. The company's asset-liability ratio was 39.07%, gross margin was 18.76%, return on equity was 5.91%, and diluted earnings per share was 2.38 yuan. The number of shareholders was 22,800, and the top ten shareholders held 67.61% of total share capital.

The Changzhou Municipal Human Resources and Social Security Bureau reported on August 25 that Xingyu Automotive Lighting Systems recruited a total of 440 graduates from the class of 2026, and terminated labor contracts with 107 of them. The negotiation process was crude and rigid, causing a negative impact. The company has apologized and suspended its human resources director. The investigation shows the company did not improperly benefit from government subsidies. Human resources authorities have stepped in to assist with employment matching. As of the reporting date, 22 people have found jobs and 14 have entered interviews. Xingyu Automotive Lighting Systems mainly produces automotive lamps. It plans to issue no more than 44.7997 million ordinary shares for overseas listing in Hong Kong. In the first half of 2026, revenue was 6.884 billion yuan, up 1.87 percent year on year, while net profit attributable to the parent company was 669 million yuan, down 5.26 percent year on year.

Xingyu Shares released its 2026 interim report on August 26. The company's operating revenue was 6.88 billion yuan, up 1.9% year-on-year. Net profit attributable to the parent company was 669 million yuan, down 5.3% year-on-year. Net profit attributable to the parent company after deducting non-recurring items was 651 million yuan, down 5.4% year-on-year. Net operating cash flow was 991 million yuan, down 17.3% year-on-year.

Changzhou Xingyu Automotive Lighting Systems has been exposed for large-scale dismissal of fresh graduates just one month after welcoming its 2026 campus recruitment cohort. The labor inspection brigade of Xinbei District, Changzhou, has formally intervened and launched a comprehensive review of the company's employment compliance. According to leaked HR conversation recordings circulating online, the company required fresh graduates to choose between resigning voluntarily for personal reasons in exchange for half a month's salary compensation, or accepting forced reassignment to front-line assembly line operator positions. The talks also involved implicit coercive tactics such as pressure related to industry background checks. Multiple fresh graduates said that after the layoffs, only about 120 people remained in a group chat that previously had more than 400 fresh graduates, meaning roughly 70 percent of the cohort was no longer in the group. The personnel adjustment took place just one week after the company submitted its second listing application to the Hong Kong Stock Exchange on July 29, 2026, prompting market speculation that the move was intended to polish financial statements and reduce labor costs to support its Hong Kong IPO review. Xingyu Automotive Lighting Systems achieved revenue of 15.257 billion yuan and net profit attributable to the parent company of 1.624 billion yuan in 2025. In the first quarter of 2026, revenue was 3.43 billion yuan and net profit was 355 million yuan, with cash and equivalents exceeding 2 billion yuan. Both performance and cash flow maintained growth. As of press time, Xingyu Automotive Lighting Systems has not formally responded to the mass dismissal incident. Several labor lawyers said its actions are suspected of illegally terminating labor relations.

Xingyu has filed a second application to list on the main board of the Hong Kong Stock Exchange, reviving its A plus H dual listing plan that was shelved half a year ago. The prospectus shows that from 2023 to 2025, revenue was 10.248 billion yuan, 13.253 billion yuan, and 15.257 billion yuan, while net profit was 1.102 billion yuan, 1.408 billion yuan, and 1.624 billion yuan. However, both revenue and net profit growth rates have been declining, with revenue growth in the first quarter of 2026 falling to 10.84 percent. The problem of a single business structure is prominent: revenue from automotive lighting products accounts for as much as 94.14 percent of main business revenue. Growth in the traditional fuel-vehicle lighting business has stalled, while the new intelligent lighting business has yet to generate revenue at scale. In the first nine months of 2025, intelligent lighting revenue made up only 16.2 percent of total revenue. Overseas business gross margin plunged from 26.08 percent in 2023 to 3.65 percent in 2025, mainly because the capacity utilization rate at its Serbia plant was below 60 percent and it was bidding low to win orders. Yet the company still plans to use Hong Kong IPO proceeds for the second-phase expansion project in Serbia. Customer concentration is relatively high, with the top five customers contributing 64.7 percent of revenue in 2025.