Xingyu Auto Parts' Q3 2026 Net Profit Attributable to Parent Down 39.62% YoY, Following Termination of 107 Fresh Graduates

In the third quarter of 2026, Xingyu Co., Ltd. achieved operating revenue of 3.61 billion yuan, a year-on-year decrease of 8.67%; net profit attributable to the parent company was 262 million yuan, a year-on-year decrease of 39.62%. In the first half of 2026, the company's operating revenue increased by 1.87% year on year, while net profit attributable to the parent company decreased by 5.26% year on year. In the first three quarters of 2026, Xingyu Co., Ltd.'s operating revenue was 10.494 billion yuan, a year-on-year decrease of 2.02%; net profit attributable to the parent company was 932 million yuan, a year-on-year decrease of 18.34%. In its third-quarter report, Xingyu Co., Ltd. stated that the profit decline was mainly due to a decline in business revenue, a significant year-on-year increase in some raw materials, and an increase in R&D expenses. In July 2026, Xingyu Co., Ltd.'s management adjusted positions on the grounds of "subsequent order conditions and labor demand" and terminated labor contracts with 107 newly hired fresh graduates. Xingyu Co., Ltd. later admitted that the decision involved "misjudgment and hasty decision-making." In the first half of 2026, China's passenger vehicle production and sales fell by 5.9% and 6%, respectively, and domestic sales of passenger vehicles fell by 24.3%. In its semi-annual report, Xingyu Co., Ltd. stated that downstream domestic sales of passenger vehicles were sluggish, and some supporting models did not meet expectations. In 2025, Xingyu Co., Ltd.'s headlamp and taillamp products achieved revenue of 8.04 billion yuan and 5.547 billion yuan, respectively, together accounting for 89.1% of the company's operating revenue. According to the data budget disclosed in the Hong Kong stock application materials, headlamps and taillamps contributed about 92.5% of the company's gross profit. In 2025, the company's raw material and consumable costs reached 10.3 billion yuan, accounting for 84.3% of cost of sales. In 2025, the gross margin of Xingyu Co., Ltd.'s intelligent vehicle lighting was 19.7%, and that of non-intelligent vehicle lighting was 20%; the controller business had a gross margin of 28% and revenue of 216 million yuan, accounting for 1.4% of total revenue. From 2024 to 2025, Xingyu Co., Ltd.'s number of employees decreased from 10,426 to 7,532, a reduction of 27.8%; production personnel decreased from 7,911 to 4,729. During the same period, labor outsourcing hours increased from about 8.64 million hours to 10.87 million hours, an increase of about 25.9%. As of the end of September, Xingyu Co., Ltd. held about 3.092 billion yuan in cash and bank deposits. In the first three quarters of 2026, the company's net cash flow from operating activities was 1.319 billion yuan.