Vitasoy Photo:VCG

Shares of Hong Kong-based beverage maker Vitasoy sank nearly 12 percent on Monday to the lowest level since last September, as the company faces intensifying backlash over a leaked internal memo that has been widely criticized for sympathizing with a former employee who stabbed a police officer before killing himself. 

Underscoring the deepening crisis for the company, a human resources executive was also reported to have resigned on Monday, while an increasing number of stores and e-commerce platforms in the Chinese mainland have removed its products from sale.

A Shanghai-based online fresh produce and grocery vendor - Dingdong Maicai - confirmed to the Global Times that Vitasoy drinks had been removed.

Amid the backlash, the company's shares closed at HK$25.9 ($3.33) on Monday, down 11.73 percent, and its total market capitalization dropped to HK$27.69 billion.

The incident continues to ferment and has had an irreversible negative impact on the brand, a Shenzhen-based market analyst surnamed Wu told the Global Times on Monday.

"In terms of Vitasoy's business, its main revenue comes from the mainland, which relies mainly on its brand and sales channels. But neither does the brand or its product have a special advantage, which makes it fungible," said Wu, adding that its market could further shrink amid the consumer confidence crisis.

Vitasoy generates around 70 percent of its revenue from the mainland market, according to its financial results published in June.

Amid harsh criticisms, the director of human resources of the Hong Kong operations of Vitasoy has left the company, according to an internal memo released online, new portal hk01.com reported.

After the initial internal memo drew widespread backlash, Vitasoy said in a statement on Saturday that the previous internal memo, which used "very improper wording" and led to widespread criticism, was written by an "individual employee" who wasn't authorized by the company.

It was unclear whether the human resources executive was the "individual employee" who wrote the initial memo. Nonetheless, blaming on one employee might not help the company out of the current crisis, analysts said.

"Vitasoy put the responsibility on one individual employee, showing the company lacks awareness of the seriousness of the problem, and does not have the sincerity to reflect on it. Instead, it causes more public dissatisfaction," said Wu.

Prior to the Saturday statement, Vitasoy had said that it "fully supports Hong Kong authorities in conducting a thorough investigation into the case based on the national security law. [We] are committed to supporting the stability, prosperity and development of the Chinese mainland and Hong Kong."

But netizens both in the mainland and Hong Kong called the statements "insincere."

After hashtags and topics "boycott Vitasoy" and "Vitasoy get out of the Chinese mainland" recorded millions of views online, many stores and e-commerce platforms stated their intention to remove Vitasoy drinks from sale.