Shares in Apple supplier AAC Technologies tumbled by almost 14 per cent in Hong Kong after coming under fire from a short seller.
Gotham City Research issued a report today raising questions about the company’s reported profit margins, namely that they are higher and smoother than those of its key client and largest company in the world, Apple. The short seller also questioned AAC’s related entities.
A component maker, AAC produces speakers and receivers for devices such as the iPhone.
Shares were down 7.2 per cent, recovering from a drop of as much as 13.5 per cent., but still enough to make them the worst performer today in the Hang Seng, which was up 0.2 per cent
AAC shares have gained 62.1 per cent this year to hit a record high of HK$114.2 at the end of April. They are now down 9.7 per cent since that mark.