(Yicai Global) Jan. 25 -- LuxShare Precision’s stock price plunged after the US launched a patent investigation into the Apple supplier.The probe follows a complaint US connector maker Amphenol filed on Dec. 18, accusing the Chinese firm of patent infringement.

LuxShare [SHE: 002475] ended 4 percent lower today at CNY55.21 (USD8.53), after earlier slumping as much as 9.5 percent.

LuxShare was informed of the Section 337 investigation on Jan. 22, the Dongguan-based company said yesterday. In response, it set up a special working group and hired a legal team. The probe will have no substantial impact on production and operations, it added.

But if the investigation finds the company has violated US law, LuxShare will face fines and the risk of not being able to operate in the US market, Gartner analyst Sheng Linghai told Yicai Global.

Founded in 2004, LuxShare has become a strong competitor in the field of high-speed communication connectors and started making parts for Apple's AirPod series in 2017. LuxShare said it and its subsidiaries have 2,064 valid patents.

Net profit at the firm jumped 62 percent to CNY4.68 billion (USD720 million) in the first three quarters of last year. Revenue rose 57 percent to nearly CNY59.5 billion (USD9.19 billion).

Editor: Tom Litting