Shares in AAC Technologies, which supplies Apple, dropped after a short-seller report

Courtney Goldsmith
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Apple is one of the firm's big customers (Source: Getty)

Shares in Hong Kong listed AAC Technologies, which supplies acoustic components for Apple, dropped like a stone today after coming under fire from a short seller.

The firm's stock plunged as much as 14 per cent after Gotham City Research accused the company of "dubious accounting" practices, which it said the tech firm used to overstate its profits since 2014.

Gotham, which has a short-sell position on AAC's stock, said its report was based on publicly available information and field research.

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AAC has denied the accusations. Chairman Koh Boon Hwee said: "The board vigorously denies the allegations in the report and considers the information contained therein to be inaccurate and misleading." The firm said it was seeking legal advice.

The Schenzhen-based firm, which reported net profit of 4.03bn yuan (£451m) for 2016, makes miniaturised acoustic components like speaker boxes, speakers, receivers and micro electro-mechanical system microphones.

Shares fell to as low as 96 Hong Kong dollars.

The Gotham City report did not sway Citi analyst Dennis Chan's positive view on AAC, according to Reuters, and Jefferies analyst Rex Wu added: "Our first take is there doesn't appear to be enough evidence for these allegations."

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