The share price profit of Vitasoy plummeted, and the net profit of Vitasoy lemon tea fell 95%.

Recently, Vitasoy International Group Co., Ltd. released a report for the fiscal year 2021. The report shows that between April 1, 2021 and September 30, 2021, the company's operating income fell 18.28% compared with the same period, while net profit plummeted 95% compared with the same period. As soon as the financial report came out, netizens said: no surprise at all.

The main reason for such a sharp decline is the decline in sales in the mainland market. It is reported that since entering the Chinese mainland market in 1994 and continuously building production plants, Vitasoy has become the most important market for Vitasoy, accounting for as much as 60%, of which the profits brought by the e-commerce industry account for more than 10% of the company's total profits. However, after employees of the company hanged themselves after assaulting a police officer on July 1, 2021, the company issued a letter of condolences and condolences, which was boycotted by major dealers and netizens.

After the improper speech incident fermented, some supermerchants and online merchants were removed from the shelves, and a number of artist companies also said to terminate the endorsement contract. The share price of Vitasoy also continued to decline, losing as much as HK $1 billion a day, and the former Hong Kong cattle stock halved from its high level, falling by 60%, leaving a market capitalization of only HK $18 billion. It happened during the peak sales season, when the company just launched oat and sparkling lemon tea products, upgraded the packaging of sugar-free lemon tea and added Ceylon black tea flavored lemon tea, which undoubtedly had a serious impact on sales of both old and new products.

After the incident, Vitasoy issued three consecutive statements and letters clarifying that the employees who issued the internal notices were improperly worded, wrote and published them without authorization, and offered condolences to the injured police officers. Although the incident calmed down, some merchants began to resume their shelves, and the company also offered very large preferential activities to help mainland sales recover. However, due to the peak summer sales season, declining feelings towards the company, and failure to spread to the northern market, sales still have not been effectively recovered.

During the period of time when dealers "withdraw" Vita products, competitive brands in the market also continue to rush up, and there are more brands of soy milk, plant milk, lemon tea and so on for consumers to choose from. Industry analysts said that Vitasoy's international business problems do not stop there, but the main problem is that the company's domestic market is concentrated in the south, especially in the Pearl River Delta region, where the penetration rate in the north is low. While other international / domestic packaged beverage brands continue to launch lemon tea and the packaging is more attractive, the removal of these brands has also accelerated the penetration of the entire mainland market. At the same time, analysts also said that due to the rising raw materials for making soy milk and lemon tea, and the slow updating of the packaging of Vitasoy's products, it would take as soon as three years to restore profitability in the mainland market.