Xingyu Automotive Lighting Systems (601799.SS) is under renewed scrutiny following a disciplinary document that was quickly withdrawn, amid a debate about the legitimacy of its HR practices linked to a termination scandal involving new graduates. The document detailed penalties against several executives, including general manager Zhou Xiaoping, whose salary deduction equates to a mere fraction of her dividends from the company.
Central to the controversy is “HR director” Yu Zhiming, whose title has never been confirmed in company reports, raising doubts about its authenticity. Moreover, testimonies suggest that no such position exists within the company, confusing oversight claims.
The fallout extends to client relations, with major automakers like Volkswagen and Mercedes-Benz investigating Xingyu’s employment practices. The company’s handling of the recent scandal has led to calls for transparency regarding its disciplinary measures, especially as it pushes for a secondary listing in Hong Kong.
Despite previously positioning itself as a “people-oriented” company, the mass termination incident and governance opacity highlight stark contrasts with its claimed values. Investors are left questioning the integrity of its operations and overall governance.
