Lenovo Holdings 30 million investment in tea industry

Lenovo Holdings chairman Liu.

After investing more than 1 billion of the fruit industry, Lenovo Holdings, a group of companies in the agricultural sector, March 30 announced the acquisition of the state-owned enterprise Hangzhou Dragon Crown Tea Industry Co., Ltd. 60% stake, officially into the tea sector, the acquisition price of more than 30 million.

Mixed ownership 60%

Dragon Crown Tea formerly known as the local state-owned industry longjing tea Plantation, after the Chinese Academy of Agricultural Sciences Tea Research institute under the test site, 1996 Hangzhou Dragon Crown Industrial Co., Ltd. was established, registered capital of 2.11 million yuan. The Tea Institute of the Chinese Academy of Agricultural Sciences holds 100% per cent.

Press inspection, April 2013, Dragon Crown Tea Industry Co., Ltd. has been listed in Shanghai United Rights Exchange, to transfer 41% of the equity, listing price of 24.19 million yuan. Shanghai Exchange data show that the company 2012-year operating income of 32.45 million yuan, net profit of 5.04 million yuan. It is reported that in recent years, the Dragon Crown Tea revenue and scale growth rate of 40%-50%.

Yesterday, Jia Wo Group Executive vice President Tangjie revealed that after the completion of the acquisition, Jia-wo Group holds 60% of the Dragon Crown Tea, the Academy of Agricultural Sciences Tea Research Institute shareholding ratio of 40%. The purchase price exceeds 30 million yuan. After the acquisition, the Dragon Crown tea from the state-owned enterprises into a mixed ownership. Jia Wo Group is responsible for the entire operation and management, the two sides to the way of cooperation between the Branch and enterprise.

Liu, Lenovo's chairman, said yesterday that the 18 session of plenary stressed the path of market economy and reduced government intervention, a double-edged sword for any business. Tea industry itself is a very competitive industry, the future with the Chinese tea will be in the system, property rights mechanism, technology and business model to play an innovative advantage.

"will also invest in Tieguanyin and other tea"

Jia Wo Group and the Tea Institute also launched the "Dragon Crown longjing" series spring, according to the type and grade of different, the price per catty from 1000 yuan to tens of thousands of yuan, will also be introduced for the public to drink office tea, the price at hundreds of yuan.

"The future of the tea industry in the direction will also invest 2-3 well-known tea varieties, such as Tieguanyin, black tea, Puer, etc., do not exclude the way of mergers and acquisitions." Tangjie said that the tea industry will be the first to make a brand and size, tea bags as a supplement. In the future, some deep-processing products, such as health tea, will be postponed.

"The future will build the whole large channel marketing model, nationwide by the terminal dealers to sell Dragon Crown products, there are also channels of electricity, through the company's electric dealers unified sales." "Tangjie said.

2010 Lenovo Holdings began to enter the field of modern agricultural investment, the 2012 Jia-WO Group was formally established, the company focused on fruit, tea and other subdivision areas. Prior to that, the company's investment in the fruit sector has exceeded 1 billion yuan, the total investment scale of billions of yuan.

Mr Liu, a big parent of Lenovo Holdings, has given great support to the agricultural sector, saying that both 1 billion and 2 billion can afford it. Mr Liu has repeatedly stated publicly that the agricultural sector is not in a hurry to make money.