Xingyu Shares, the largest automotive lighting company in China, has been trading on the A-share market for 15 years. Recently, the company has sparked controversy by terminating the employment of 107 new graduates from the 2026 graduating class. According to these graduates, they were pressured to either “voluntarily resign” or be reassigned to basic tasks, such as tightening screws. The negotiation process was abrupt and unyielding. In response, Xingyu Shares has issued an apology and suspended its HR director. Meanwhile, the Changzhou Human Resources and Social Security Bureau has stepped in to provide employment support to the affected graduates. Notably, Xingyu Shares had significantly ramped up recruitment in 2023 and 2024, only to reduce its workforce by nearly 2,900 in 2025. Additionally, the total hours and compensation for its labor outsourcing have more than tripled compared to 2022, and the company has been embroiled in multiple labor dispute cases. The company’s leader, Zhou Xiaoping, is dubbed the “Queen of Automotive Lighting.” In recent years, the company’s revenue and net profit have continued to grow. However, its 2026 interim report revealed a year-on-year decline in net profit attributable to shareholders. Moreover, Xingyu Shares holds only a 10.2% share of the global smart lighting market, facing mounting pressure from global competitors. The “family culture” atmosphere promoted on the company’s WeChat official account sharply contrasts with this recent layoff incident.