Xingyu Auto Parts Accused of Forcing Fresh Graduates to Resign or Face Factory Floor Transfer
Xingyu Auto Parts, a listed Chinese auto parts maker, is accused of pressuring recent master's graduates in management roles to resign voluntarily or be transferred to production lines. One affected employee said the company's fresh-graduate group shrank from over 400 to about 120 after layoffs. The company reported rising net profit from RMB 940 million in 2022 to RMB 1.624 billion in 2025, with continued growth in Q1 2026.
Xingyu Auto Parts, a listed company, has been accused of asking recent master's graduates in management positions to resign voluntarily after about one month of employment, with resignation certificates marked as "personal reasons." Those who refused were threatened with unilateral transfer to frontline production roles. One affected employee said the company's fresh-graduate group, which covered technical and management positions, had more than 400 members but only about 120 remained after the layoffs.
The company's net profit attributable to shareholders grew for three consecutive years from 2022 to 2025, rising from RMB 940 million in 2022 to RMB 1.624 billion in 2025, and continued to grow year on year in the first quarter of 2026. The company has not released a first-half earnings forecast, with its interim report scheduled for August 27. The contract terminations began in early August, and the company's share price subsequently declined.
From 2021 to 2025, research and development expenses rose from RMB 388 million to RMB 884 million, while the number of technical staff increased from 1,493 to 2,080. Production staff numbers fell from 5,676 to 4,729, after peaking at 7,911 in 2024. The company has also undertaken large dividend distributions and share buybacks in recent years.