GOTHAM CITY RESEARCH HAS REASON TO BELIEVE THAT: AAC has used 20+ undisclosed related parties & dubious accounting to overstate & smoothen profits since 2014. At least 20 undisclosed related party suppliers are owned or managed by AAC CEO’s family members or employees. These undisclosed related party suppliers are not listed in Apple’s supplier list, despite some claiming otherwise.  Some of the undisclosed related entities supply the same products as AAC does, are based in the same locations as AAC is, & hire employees under AAC’s name. AAC has used these hidden entities to evade Apple’s labor standards specified in the Apple Supplier Code of Conduct. Apple (and other parties) will conduct independent investigations, & validate our findings. As a result, AAC’s profit margins will decline, converging to its peers’ levels. AAC is in violation of Hong Kong listing rules, Apple’s supplier code of conduct, and its own representations.

AAC has used 20+ undisclosed related parties & dubious accounting to overstate & smoothen profits since 2014. At least 20 undisclosed related party suppliers are owned or managed by AAC CEO’s family members or employees. These undisclosed related party suppliers are not listed in Apple’s supplier list, despite some claiming otherwise. Some of the undisclosed related entities supply the same products as AAC does, are based in the same locations as AAC is, & hire employees under AAC’s name. AAC has used these hidden entities to evade Apple’s labor standards specified in the Apple Supplier Code of Conduct. Apple (and other parties) will conduct independent investigations, & validate our findings. As a result, AAC’s profit margins will decline, converging to its peers’ levels. AAC is in violation of Hong Kong listing rules, Apple’s supplier code of conduct, and its own representations.

Note by QT: an opposing-view report has been published by another investment research firm (Anonymous Analytics) which we feel should be shared here as a subsequent report. Please go to Deails Link to read the opposing-view report.

AAC has used 20+ undisclosed related parties & dubious accounting to overstate & smoothen profits since 2014. At least 20 undisclosed related party suppliers are owned or managed by AAC CEO’s family members or employees. These undisclosed related party suppliers are not listed in Apple’s supplier list, despite some claiming otherwise. Some of the undisclosed related entities supply the same products as AAC does, are based in the same locations as AAC is, & hire employees under AAC’s name. AAC has used these hidden entities to evade Apple’s labor standards specified in the Apple Supplier Code of Conduct. Apple (and other parties) will conduct independent investigations, & validate our findings. As a result, AAC’s profit margins will decline, converging to its peers’ levels. AAC is in violation of Hong Kong listing rules, Apple’s supplier code of conduct, and its own representations.