Shares in Hong Kong-listed Apple supplier AAC Technologies halt trading after Gotham City research questions profit margins

 
Shruti Tripathi Chopra
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AAC denied accusations of "dubious accounting" practices by short-seller Gotham City Research (Source: Getty)

Shares in the Hong Kong-listed Apple supplier AAC Technologies halted trading today after short seller Gotham City Research released a fresh report today questioning its profit margins.

The acoustic parts maker tanked 11 per cent to as low as 81.25 Hong Kong dollar before suspension.

Last week, Gotham City accused AAC of using "dubious accounting" practices to overstate its profits since 2014. This led to the Apple supplier's shares dropping over 14 per cent. AAC branded the report "misleading".

Read more: Apple supplier defends profit margins after Gotham City's scathing report

In a response last week, AAC said: "The company is a world-class total technology solution provider. The company delivers customer focused solutions across many technology segments.

"Not only has the company invested in advanced materials research, product designs and building up intellectual property portfolio, the company has also invested heavily in manufacturing automation to achieve operational excellence in manufacturing efficiency. The above form the bases of the company’s good gross margins achieved."