Gasgoo Munich-Changzhou Xingyu Automotive Lighting Systems Co., Ltd. held an online earnings briefing on Sept. 2, according to Gasgoo Auto. Zhou Xiaoping, the company’s chair and general manager, addressed the recent labor controversy that has sparked widespread public attention.
Zhou said the company is closely monitoring public sentiment and has issued a public apology regarding the facts of the incident. Measures are now being implemented under government guidance. "We express our heartfelt gratitude to the media for their supervision in revealing the truth, and we deeply reflect on this and offer a sincere apology," she stated. She also noted that the company has filed complaints with cyber-security authorities against what it deems false reports by some media outlets to safeguard its legal rights.
Zhou emphasized that all employment policies were established in accordance with laws and regulations. Following the incident, the company has reviewed and rectified these processes to ensure they effectively protect workers' rights. "We once again offer a sincere apology to society and our investors. We will strictly adhere to compliance standards, foster harmonious labor relations, and actively shoulder more social responsibility, striving to reward investors with better performance," she said.
Image Source: Xingyu
The controversy stems from Xingyu’s decision to rescind offers for 107 recent university graduates. The company reportedly recruited around 400 graduates during its fall 2025 hiring season. In early August, the human resources department began batch interviews, presenting a "take-it-or-leave-it" option: graduates who resigned citing "personal reasons" would receive half a month’s salary as compensation; those who refused faced unilateral transfer to frontline operational roles. On Aug. 25, the Changzhou Human Resources and Social Security Bureau issued a statement characterizing the negotiation process as "simple and crude, lacking full and effective communication," and announced the suspension of the human resources director. By Aug. 27, Xingyu had issued an apology letter, pledging to provide three months of job-hunting subsidies to the 107 affected graduates, with an additional six months of salary compensation if they fail to secure employment within that period.
Xingyu is a leading player in China’s automotive lighting sector, with a client roster that includes Volkswagen, Mercedes-Benz, HIMA Chery, and Geely. On Sept. 1, Volkswagen China said it had launched a special investigation into complaints regarding the supplier. Financially, the company reported revenue of approximately 6.88 billion yuan for the first half of 2024, up 1.87% year-on-year, while net profit came in at roughly 669 million yuan, a decline of 5.26%.
