A major auto lamp manufacturer with a market value exceeding 20 billion yuan is at the center of a storm over its treatment of recent college graduates, with reports suggesting new employees were given a stark choice between resigning voluntarily or taking on factory floor assembly work.

According to multiple media reports, some graduates who joined Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (SHA: 601799) this year said that in August, the company's HR department cited a "poor market environment" as a reason to force them to choose between resigning or being transferred to assembly line roles. A WeChat group that originally held over 400 new graduates has reportedly shrunk to roughly 120 members.

However, this issue is not limited to recent hires, as numerous veteran employees are also facing potential job cuts. Back in April, the company had already moved management staff to frontline positions. One employee with four years of tenure revealed that their plant laid off about 40% of its workforce.

Beyond the layoff controversy, Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (SHA: 601799) is grappling with a slowdown in revenue growth. In the first quarter of this year, the company reported revenue of 3.43 billion yuan and a net profit attributable to shareholders of 355 million yuan. However, the year-on-year growth rates for these two metrics dropped from 28.28% and 32.68% in the same period last year to 10.84% and 10.26%, respectively.

To further its internationalization strategy, the company is currently preparing for a Hong Kong IPO. At the same time, it is actively exploring the embodied intelligence sector to tap into new growth opportunities. According to its prospectus, the company has already delivered initial samples of embodied intelligence modules to customers.

Interestingly, Zhou Xiaoping, the actual controller of the company, has repeatedly been ranked as the richest woman in Changzhou. However, according to the New Fortune 500 Richest List, her latest wealth stands at 19.14 billion yuan, a decrease of 12.54 billion yuan from her peak in 2022.

Faced with the dilemma of resigning or taking on manual labor, the auto lamp giant appears to be squeezing its new graduate employees. On August 8th, the HR department asked new graduates to resign, citing the "poor market environment" and "company operational difficulties," with resignation certificates uniformly stating "resignation for personal reasons."

According to recordings provided by several new graduates, those who signed the termination agreement that day were offered an additional half-month's salary as compensation, along with normal pay for days worked and social security contributions for August. The company also promised to provide job recommendation letters and a one-week grace period for dormitory stays. For those who rejected this proposal, an alternative was offered: a transfer to frontline operator positions, which the graduates referred to as "screw-turning" jobs.

One disgruntled graduate told a news outlet, "I studied for seven years to get a master's degree from a 985 university, joined through campus recruitment in July, and now I'm being let go after just one month. If I don't cooperate, I'm sent to turn screws!" Many employees noted that over 400 graduates joined at the same time in July, but now only about 120 remain in the group, meaning roughly 70% have left.

Several employees suspect that the company's practice of mass hiring graduates only to dismiss them may be an attempt to claim local employment subsidies for fresh graduates. They claim that after securing the subsidies, the company quickly clears them out, while also saving on a month of outsourced labor costs. In addition to new graduates, many veteran employees are facing similar fates of resignation or transfer.

As early as April, the company moved management to the front lines, and a large number of temporary workers in the production system were let go simultaneously. A veteran employee with four years of service stated that their plant cut around 40% of its total staff. The largest factory, located on Hanjiang Road, has been struggling since last year, with workers experiencing schedules of one day on and one day off. As of the close on August 25th, the company's stock price was 84.42 yuan per share, giving it a market value of approximately 24.12 billion yuan.

Amid the layoff turmoil, the company is also facing declining performance growth. Data from iFinD shows that from 2022 to 2024, its revenue was 8.248 billion yuan, 10.248 billion yuan, and 13.253 billion yuan, with growth rates of 4.26%, 24.25%, and 29.32%. During the same period, net profits were 941 million yuan, 1.102 billion yuan, and 1.408 billion yuan, with growth rates of -0.85%, 17.07%, and 27.78%. Both metrics showed a steady upward trend.

By 2025, annual revenue rose to 15.257 billion yuan, a 15.12% increase, and net profit reached 1.624 billion yuan, a 15.32% increase. However, compared to 2023 and 2024, the growth rates for both revenue and net profit have noticeably decelerated.

According to its financial reports, the company's main revenue and costs are primarily derived from the production and sale of automotive lamps. In 2025, its primary business revenue was 14.578 billion yuan, accounting for 95.55% of total revenue. The lamp business contributed 14.362 billion yuan, up 15.18% year-on-year, with a gross margin of 20.2%, an increase of 0.29 percentage points. Meanwhile, its controller business generated revenue of 216 million yuan, a substantial 220.78% year-on-year growth, with a gross margin of 27.96%, up 1.78 percentage points.

By region, domestic operations remain the main revenue driver, with annual sales reaching 13.944 billion yuan, up 15.83%, and a gross margin of 21.07%, up 0.57 percentage points. In contrast, overseas operations lagged, generating 634 million yuan in sales, up 27.05%, but with a gross margin that fell 2.8 percentage points to 3.65%, far below the profitability of domestic operations.

The company also faces concerns about high customer concentration. Its financial report shows that in 2025, sales to its top five customers totaled 9.874 billion yuan, representing about 64.7% of annual sales. In 2026, the company reported first-quarter revenue of 3.43 billion yuan and a net profit of 355 million yuan. However, growth rates for both metrics have further decelerated, with revenue growth falling from 28.28% to 10.84% and net profit growth dropping by 22.42 percentage points to 10.26%.

Under this pressure, the company has decided to pursue a Hong Kong listing to deepen its international strategy, enhance its global brand influence, and leverage international capital markets to diversify financing channels. On August 14th, the company announced that its Hong Kong listing had been filed with the China Securities Regulatory Commission. According to the prospectus, part of the funds raised will be used to improve its international production layout, including building an intelligent automotive electronics and vision industry center in Changzhou, expanding its Serbia production base's second phase, and adding production lines at its Chongqing facility.

A research report from Changjiang Securities suggested that these funds would support the Serbia plant's upgrade from rear lamp production to front lamp production, increasing value per vehicle, and potentially allowing overseas gross margins to gradually recover from their 2025 lows toward domestic levels.

According to Tianyancha, Changzhou Xingyu Automotive Lighting Systems Co., Ltd. was established in May 2000. The actual controller is the legendary businesswoman Zhou Xiaoping. Born in March 1961, Zhou graduated from Bethune Medical University (which merged into Jilin University in 2000) in 1990 and initially worked as a teacher at a health school.

In 1993, influenced by the trend of school-run enterprises, Zhou shifted from medicine to business, becoming the factory director of Wujin County Xingyu Lamp Factory. In 1997, the factory was converted from a school-run enterprise into a private company. In May 2000, Zhou and her father Zhou Bajin integrated industry resources to formally establish the company, focusing on the research, development, production, and sales of automotive lighting products.

In February 2011, the company was listed on the Shanghai Stock Exchange. Under Zhou's leadership, it has grown into a leading domestic manufacturer of complete lamp assemblies and comprehensive solutions provider. According to Frost & Sullivan data, based on 2025 sales revenue, the company ranks first in China and seventh globally in the overall automotive lighting market, holding an 11.6% share domestically and about 4.6% globally.

In the smart automotive lighting market, it ranks first both globally and in China, with a 28.4% share of the Chinese market based on 2025 sales. After achieving success in the lamp sector, Zhou has set her sights on embodied intelligence. In October 2025, the company formed a joint venture, Changzhou Xingyu Intelligent Robot Co., Ltd., with JAKA Robotics, holding a 70% stake.

In its Hong Kong listing prospectus, the company also mentions that it is actively exploring the embodied intelligence field, aiming to leverage its R&D capabilities in smart automotive lighting optics, intelligent manufacturing technology, and vertical integration resources. Specifically, it is focusing on the R&D and manufacturing of core components and the deployment of embodied intelligence robots in industrial applications. It has completed the structural design and validation of head modules, joint modules, controllers, and related components, and is providing systematic optical technology solutions in the areas of "lighting," "projection," and "display."

The company has disclosed that, up to the latest practicable date, it has delivered initial samples of embodied intelligence modules to customers. As the company has grown, Zhou Xiaoping has accumulated significant wealth, repeatedly topping the list of Changzhou's richest women. However, on the New Fortune 500 Richest List, her wealth has shrunk to 19.14 billion yuan, a decrease of 12.54 billion yuan from the 31.68 billion yuan peak she reached in 2022.