Volkswagen Group has opened a supply-chain compliance investigation into Xingyu Shares after the Chinese automotive-lighting supplier terminated contracts with 107 of 440 2026 college graduates. Volkswagen China said on September 1 that worker rights are a core principle extending to suppliers. On an online earnings call on September 2, Xingyu Chairwoman and General Manager Zhou Xiaoping said the company had apologized, would implement remedial measures under government guidance, and would review and overhaul its employment systems and procedures. Xingyu also said it had complained to internet regulatory and cybersecurity authorities about inaccurate media reports. The company suspended its human resources director and offered job-seeking subsidies, job-matching assistance and temporary housing; graduates still unemployed after three months are promised compensation equivalent to six months’ salary. As of August 25, 22 affected graduates had found jobs and 14 were interviewing. The dispute comes as Xingyu pursues a Hong Kong IPO, although no public information links the personnel actions to its listing plans. In the first half of 2026, revenue rose 1.87% to CNY 6.884 billion while net profit attributable to shareholders fell 5.26% to CNY 669 million, pressured by weak domestic passenger-vehicle sales, underperforming supported models and higher raw-material costs.