Xingyu Co., Ltd., a leading domestic automotive lighting company, came under significant pressure in Q3 2026: quarterly revenue fell 8.67% year-on-year, and net profit attributable to shareholders plunged 39.62% year-on-year. Overall revenue and net profit attributable to shareholders for the first three quarters also declined year-on-year. The company attributed the profit decline mainly to lower revenue, rising prices of certain raw materials, and increased R&D expenses. Earlier, the company drew controversy when it terminated contracts with 107 newly hired fresh graduates all at once, and acknowledged that there had been misjudgments in the relevant decisions. Its original growth model—expanding its customer base and securing new vehicle projects to sustain growth—has shown its drawbacks against the backdrop of a downturn in the 2026 passenger car market and sales of some supported models falling short of expectations. These problems have been compounded by the lighting business's revenue and profit being heavily concentrated in front and rear lights, a high proportion of raw material costs that are difficult to pass on in the short term, and smart lighting upgrades failing to deliver higher gross margins—all of which have further squeezed profit margins. In recent years, the company has cut costs by significantly reducing regular employees and increasing outsourced labor hours. At present, the company still has a sufficient capital buffer. Looking ahead, it needs to shift from pursuing new projects to improving the return on individual projects and rebuild its profit growth capability.