Joyvio, a subsidiary of Legend Holdings, announced on March 30 that the company has acquired a 60 percent share of State-owned tea company Hangzhou Longguan Tea Industrial Co for more than 30 million yuan ($4.83 million).

Longguan was a fully State-owned company of the Tea Research Institute under the Chinese Academy of Agricultural Sciences. Producing and selling Hangzhou's famous Longjing tea as its core business, sales revenue of the company reached 32.45 million yuan in 2012. According to the company's annual report, its revenue grew by 40 to 50 percent every year.

After the acquisition, Joyvio will take over operational management of Longguan.

Liu Chuanzhi, chairman of Legend Holdings, said the cooperation aims at combining innovation with commercialization in the tea industry.

"Along with its position as a symbol of traditional Chinese culture, the tea industry has great investment potential. Competition in this industry is fierce, and we hope the acquisition can facilitate innovation in management mechanisms, technique and marketing,"Liu said.

He said that, in addition to Longjing tea, Joyvio will invest in other well-known tea brands in the near future and promote tea bags and tea-related health products.

Green tea is the third agricultural sector Legend Holdings has entered since 2010, after blueberries and kiwi fruit.