Xingyu Shares Penalizes CEO, Fires HR Chief Over Forced Graduate Resignations
AM730 · 2 SOURCESabout 3 hours ago5 MIN
Summary
Chinese auto lamp manufacturer Xingyu Shares has imposed severe penalties on its leadership after a scandal involving the forced resignation of 107 recent graduates, triggering compliance investigations by major European automotive clients. The company's general manager Zhou Xiaoping was ordered to forfeit 12 months of salary exceeding 1 million yuan, while the HR director was dismissed and other executives were disciplined for their roles in the incident.
Key Points
- Xingyu Shares, a leading Chinese automotive lighting company seeking a Hong Kong IPO, announced disciplinary actions on September 6, 2026, affecting multiple senior executives
- General Manager Zhou Xiaoping (周曉萍), who also serves as board chairman, received a 12-month salary deduction worth over 1 million yuan based on her 2025 pre-tax annual salary of 1.1 million yuan
- Deputy General Manager Li Shujun (李樹軍) had his responsibilities adjusted to no longer oversee human resources and received a 6-month salary deduction against his 2025 salary of 750,000 yuan
- HR Director Yu Zhiming (俞志明) was dismissed, and HR Department Head Li Mei (李梅) was demoted and transferred to a different position
- In August, the company presented graduates with a "two choices" ultimatum: resign voluntarily with half a month's salary compensation, or be reassigned to production line assembly work with standard worker wages
Why It Matters
The incident has drawn scrutiny from international car manufacturers Mercedes-Benz, BMW and Volkswagen, who have initiated compliance reviews of their supplier, potentially jeopardizing Xingyu Shares' IPO aspirations and billion-yuan contracts with European clients . The case highlights growing concerns about corporate governance and labor practices among Chinese companies seeking overseas listings, as affected graduates escalated their complaints to the EU, Hong Kong Stock Exchange and European automotive partners by submitting over 100 pages of evidence in Chinese and English .
The incident has drawn scrutiny from international car manufacturers Mercedes-Benz, BMW and Volkswagen, who have initiated compliance reviews of their supplier, potentially jeopardizing Xingyu Shares' IPO aspirations and billion-yuan contracts with European clients . The case highlights growing concerns about corporate governance and labor practices among Chinese companies seeking overseas listings, as affected graduates escalated their complaints to the EU, Hong Kong Stock Exchange and European automotive partners by submitting over 100 pages of evidence in Chinese and English .