The Hong Kong-listed shares of AAC Technologies, an acoustic component supplier for Apple Inc, plunged as much as 14 percent on Thursday, after research firm Gotham City accused it of “dubious accounting” practices.
HONG KONG The Hong Kong-listed shares of AAC Technologies, an acoustic component supplier for Apple Inc, plunged as much as 14 percent on Thursday, after research firm Gotham City accused it of “dubious accounting” practices.
Gotham City Research LLC, which has a short-sell position on AAC’s stock, said the Shenzhen-based company used those accounting methods to overstate its profits since 2014. Gotham City said its report was based on publicly available information and field research.
AAC did not immediately respond to requests for comment.
Shenzhen-based AAC is a maker of miniaturized acoustic components including speaker boxes, speakers, receivers and Micro Electro-Mechanical System (“MEMS”) microphones. Apple is one of its major clients.
Shares of the company fell to as low as HK$96, while the broader benchmark Hang Seng Index was flat.
The company in March reported a net profit of 4.03 billion yuan ($583.66 million) in 2016, up 29.6 percent from the previous year.
(Reporting by Twinnie Siu and Sijia Jiang- Editing by Randy Fabi)
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