Xingyu Co., Ltd. has issued its latest announcement: the general manager and several other senior executives have been fined.

On September 7 (just now), Changzhou Xingyu Automotive Lighting Co., Ltd. issued a notice titled “Details Regarding Our Recent Missteps in Job Reassignments and Workforce Reductions, Along with Corrective Measures,” outlining the sequence of events, the company’s reflections and stance, and the follow-up improvement measures.

The notice stated that the company’s management once again offers its sincere apologies to the affected employees, their families, and the public at large. It also announced that General Manager Zhou Xiaoping, who bears primary responsibility, will have her salary reduced for one year; Deputy General Manager Li Shujun, who holds direct responsibility, will have his duties reassigned and his salary cut for six months; Human Resources Director Yu Zhiming has been removed from his position (he had already been suspended); and Head of the Human Resources Department, Li Mei, has been demoted and transferred to a different role.

The full text is as follows:

Details Regarding Our Recent Missteps in Job Reassignments and Workforce Reductions, Along with Corrective Measures:

I. Sequence of Events

During the campus recruitment seasons of autumn 2025 and spring 2026, our company signed the “National Employment Agreement for Graduates of Ordinary Institutions of Higher Education” (also known as the “Tripartite Agreement”) with a total of 440 graduating students from the class of 2026. Of these, 372 subsequently established formal employment relationships with us after graduation, while the remaining 68 did not continue working due to pursuing other career paths or returning to school for further studies.

In July 2026, based on anticipated order volumes and staffing needs, the company’s management proposed a plan to optimize and consolidate positions. However, they mistakenly decided to reassign and reduce the workforce among some newly hired employees and instructed the HR department to implement this decision promptly.

In early August, the HR department formally initiated consultations with 140 of the 372 employees. Among them, 33 retained their original positions, while the remaining 107 signed “Agreements for Termination of Labor Contracts.” These 107 employees comprised 75 bachelor’s degree holders and 32 master’s degree holders, distributed across R&D roles (including optical, structural, and electronic product design) for 39 individuals, manufacturing roles (covering assembly processes, equipment maintenance, and machinery commissioning) for 60 individuals, and functional roles (such as quality engineers, project engineers, and inspectors) for 8 individuals.

II. Our Reflections and Stance

Throughout the planning and consultation process, misjudgments by company management and hasty decision-making—without adequately considering the fresh start these employees had just embarked upon—resulted in a rough and insensitive negotiation approach. This caused significant emotional and psychological harm to the employees and had serious negative repercussions for their families and society at large. We deeply regret this situation and are conducting thorough self-reflection. We fully accept the stern criticism and public scrutiny from both the general public and the media, taking full responsibility. On this occasion, the company’s management once again extends its heartfelt apologies to the affected employees, their families, and all sectors of society. Accordingly, we have decided to impose a one-year salary reduction on General Manager Zhou Xiaoping, who bears managerial responsibility; adjust the duties of Deputy General Manager Li Shujun, who holds direct responsibility, and reduce his salary for six months; remove Human Resources Director Yu Zhiming from his post (he had previously been suspended); and demote and reassign Head of the Human Resources Department, Li Mei.

Following the incident, our company swiftly implemented remedial measures: on August 27, we made a one-time payment of three months’ job-seeking allowances (RMB 5,000 per month) to the 107 employees; reimbursed travel expenses for those who traveled from out of town to participate in recruitment activities; provided free accommodation to those who remained in company dormitories during this period; and committed to compensating, at their original salary levels, any employee who failed to secure new employment within three months. We also individually informed each of these employees about these arrangements.

The human resources departments of Changzhou City and its districts promptly organized two specialized job fairs for university graduates and actively matched the 107 employees with suitable positions through targeted recommendations. During this process, our company worked closely with relevant enterprises to provide additional job opportunities. As of noon on September 7, 71 of the 107 employees had already joined new employers, 22 had passed interviews and received job offers, while the remaining 14 were either undergoing interviews, coordinating employment arrangements, or planning to pursue graduate studies. Moving forward, our company will continue to collaborate closely with the human resources authorities to support these employment efforts.

III. Follow-Up Improvement Measures

In response to the issues and shortcomings exposed by this incident, our company will draw profound lessons, rectify its mistakes, and, under the oversight of all stakeholders and the media, implement the following corrective measures at the source:

First, strengthen our people-oriented business philosophy. We will consistently prioritize the vital interests of our employees in corporate development, translating our corporate culture and values into concrete actions. We will actively fulfill our social responsibilities, strive to create more job opportunities, foster a warmer and more supportive workplace environment, and achieve shared growth between the company, its employees, and society at large.

Second, optimize human resources management. Embed the “people-first” principle into every aspect of HR operations, recruiting dedicated professionals who care deeply about employees, are well-versed in relevant policies, and possess strong expertise to bolster our HR team. We will make thorough communication a mandatory preliminary step for major personnel changes, carefully solicit input from all stakeholder groups, and establish direct channels for employees to voice their opinions daily, ensuring timely responses to their concerns and requests.

Third, reinforce mechanisms safeguarding employee rights. We will comprehensively review and systematically enhance existing systems covering career planning, compensation packages, health benefits, and other protections. We will increase resource allocation for safeguarding new employees’ rights, establishing the “Xingyu Youth Growth Fund” to support skills training, academic advancement, professional title evaluations, and assistance for those facing difficulties—funds earmarked exclusively for these purposes and managed with full transparency.

Fourth, improve external oversight mechanisms. We will engage third-party professional organizations, invite legal experts, media representatives, and employee delegates to regularly conduct special assessments of our HR practices and publicly disclose the findings, proactively welcoming societal scrutiny.

We sincerely thank the news media, online communities, and all sectors of society for their attention and oversight!

Changzhou Xingyu Automotive Lighting Co., Ltd.

September 7, 2026

Source: Xingyu Co., Ltd.