(Yicai Global) Aug. 4 -- Nayuki Holdings’ shares recovered lost ground after the Chinese fruit tea chain said official inspectors have not found any food safety issues following a Xinhua News report two days ago that raised concern about serious sanitation problems at two of its Beijing outlets.

Nayuki [HKG:2150] finished 4.5 percent higher today at HKD10.16 (USD1.31), after earlier gaining as much as 7.4 percent. The stock had slumped 10.8 percent yesterday following publication of the report on Aug. 2.

The company has not been fined or penalised and the report will not have an adverse impact on its operations or financial position, Shenzhen-based Nayuki said today.

Two stores in Beijing had a great number of sanitation issues, including cockroaches in the kitchen, the use of rotten fruits by some staffers and their casual change of production date labels on products, Xinhua said.

Nayuki shut them in response and invited officials to make on-site checks. Inspectors had checked 186 of its 603 stores nationwide as of 6 p.m. yesterday and found no problems, the firm said on its Weibo account the same day.

Founded in 2015, Nayuki went public in Hong Kong in June, becoming the first listed operator of a Chinese new-style tea drink chain.

Editor: Futura Costaglione