TORONTO, May 1, 2013 /CNW/ - McVicar Industries Inc. ("McVicar" or the
"Company") today announces that the Company has filed its audited
consolidated financial results for the fiscal year ended December 31,
2012. The audited consolidated financial statements and Management
Discussion and Analysis can be downloaded from www.SEDAR.com. All amounts are in Canadian dollars unless otherwise noted.
McVicar had an exciting year in its Technology products group with the
100% acquisition of Jite, and in its Chemical products group with the
purchase of property in an industrial park in China and the 100%
ownership of Changlong. The acquisitions will greatly enhance its
operations and future growth.
Year 2012 Financial Highlights
During the year 2012, the Company, both the chemical products group and
the technology products group, achieved considerable profitability.
Sales: sales for the year 2012 were $28,923,058, 4% lower than the year
Gross profit: Gross profit for the year 2012 was $9,126,701, an 18%
increase from $$7,761,366 of the year 2011.
Net (loss) income: Net income was $2,779,850 for the year 2012, compared
to net loss of $1,326,115 in the year 2011. Net income attributable to
shareholders of the Company for the year 2012 was $2,920,747 compared
to net loss of $1,796,096 a year ago.
Earnings per share: Basic and diluted earnings per share for the year
2012 was $0.082 compared to loss per share of $0.049 in the year 2011.
2012 Business Developments
Acquisition of an 8% non-controlling interest of Changlong: In June
2012, the Company acquired the remaining 8% of common shares of
Changlong that the Company did not hold for $352,880.
Acquisition of an 100% interest of Anhui: In August 2012, the Company
won an open bid auction to acquire a 100% equity interest in Anhui
Linghua Co. Ltd. ("Anhui"), a chemical company located in the Xiangyu
Chemical Industrial Park, Dongzhi County, Chizhou City, Anhui province
China, for a total purchase price of RMB37,500,000 (approximately $6.0
million). Anhui Linghua has 200 mu (approximately 130,000 square
meters) of land and infrastructure for a chemical operation. Pursuant
to the purchase agreement, the acquisition was solely comprised of the
land use rights, building and equipment, excluding any liabilities for
the periods prior to the acquisition date. Currently, The Anhui
facility is currently under construction, and the Company is working on
a business development plan for the Anhui plant.
Acquisition of a 43.8% non-controlling interest in Jite: In January,
2012 the Company entered into a support agreement with its 56.2% owned
subsidiary Jite pursuant to which the Company agreed to offer to
acquire, directly or indirectly, all of the 8,788,363 outstanding
common shares of Jite which it did not already own and up to an
additional 1,186,000 shares issuable upon exercise of existing options
of Jite for a cash price of $0.60 per share. As at December 31, 2012
the Company owned 100% of the common shares of Jite, of which 505,438
untendered shares were converted to redeemable preferred shares and
redeemed at $0.60 each and are treated as debt for accounting purposes
and will be paid out in future periods when presented with the
appropriate documentation from the previous holder of the Jite shares.
Jite (Kunshan) plant: In December 2010 the Company established an
assembling facility in the Kunshan plant for trial production of the
products currently sold to customers. In 2012, the Company determined
to suspend the trial operation in Kunshan plant, because the efficiency
and quality of the assembling was lower than originally expected, and
accordingly the assembling facility was moved back to Jite (Shenzhen).
As a result, the buildings of the Kunshan plants were used for rental
purposes to generate additional income for McVicar.
McVicar Industries Inc., headquartered in Toronto, Canada, is focused on
investments and acquisitions of businesses in China. At present,
McVicar has operations in both electronic components and specialty
chemicals in four operations in China.
Information set forth in this news release may involve forward-looking
statements under applicable securities laws. The forward-looking
statements contained herein are expressly qualified in their entirety
by this cautionary statement. The forward-looking statements included
in this document are made as of the date of this document and the
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by applicable
securities legislation. Although Management believes that the
expectations represented in such forward-looking statements are
reasonable, there can be no assurance that such expectations will prove
to be correct. This news release does not constitute an offer to sell
or solicitation of an offer to buy any of the securities described
herein and accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE: McVicar Industries Inc.
For further information:
Please contact Ms. eXavier Peterson or Gang Chai, CEO at: 55 University Avenue, Suite 605, Toronto, ON M5J 2H7 Tel: (416)366-7420 Fax (416)366-7421 www.mcvicar.ca.