Nayuki Holdings (HKG:2150) is facing backlash after a customer reportedly discovered a frog carcass in one of its floral tea products, The Standard reported Monday, citing mainland media.

Shares of Nayuki gained about 3% in afternoon trade on Tuesday.

The consumer, who had already taken several sips, said the frog closely resembled the white flowers in the tea and was nearly ingested, resulting in "significant mental distress," the report said.

The company said it will compensate the customer as per food safety laws, the news site reported.

China's market regulator has launched an investigation into the incident, the report said.

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