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 2011.
- 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.