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2009

 

Dec. 30 McVICAR TO ACQUIRE THE REMAINING 38% INTEREST IN HANGZHOU CHANGLONG CHEMICAL

Nov. 30 McVICAR ANNOUNCES THIRD QUARTER RESULTS

Sep. 18 McVICAR APPOINTS NEW DIRECTOR

Aug. 31 McVICAR ANNOUNCES SECOND QUARTER RESULTS

July 29 McVICAR TEMPORARILY SUSPENDS LUYUAN OPERATIONS

June 30 McVICAR DIRECTOR RETIRES

June 09 McVICAR WITHDRAWAL FROM JOINT VENTURE WITH SINO-LION

June 01 McVICAR ANNOUNCES FISCAL FIRST QUARTER RESULTS

May 05 McVICAR ANNOUNCES FISCAL 2008 YEAR END FINANCIAL RESULTS

Jan. 07 McVICAR ACQUIRES REMAINING MINORITY INTEREST IN ITS HONGKONG SUBSIDIARY

 

McVICAR INDUSTRIES INC.
PRESS RELEASE
Dec. 30, 2009
Trading Symbol: MCV

McVICAR TO ACQUIRE THE REMAINING 38% INTEREST IN HANGZHOU CHANGLONG CHEMICAL: McVicar Industries Inc. ("McVicar") announces that its fully owned Chemical subsidiary, McVicar (Hongkong) Advanced Materials Co. Ltd. ("MAM") have reached an agreement with British Virgin Island based Sanlong Holdings Co. Ltd. (“Sanlong”) to purchase its 38% equity interest in Hangzhou Changlong Chemical Co. Ltd. (“Changlong ”). Sanlong obtained the 38% interest in Changlong in January, 2009 by exchanging its 9.5% equity interest in MAM (see news release Jan. 5, 2009). MAM will pay a cash amount of RMB 9,405,000 (~CAN $1.47 million) for the acquisition. After this transaction, MAM will have 100% ownership of Changlong and will have the benefit of simple operation of the company.

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McVICAR INDUSTRIES INC.
PRESS RELEASE
Nov. 30, 2009
Trading Symbol: MCV

McVICAR ANNOUNCES THIRD QUARTER RESULTS: McVicar Industries Inc. (“McVicar” or the “Company”) is pleased to announce that it has filed its interim financial statements and management's discussion and analysis (MD&A) for the third quarter ended September 30, 2009. The detailed financial statements and MD&A can be found on www.sedar.com. All amounts are in Canadian dollars unless otherwise noted.

The following are the highlights of results for the third quarter and nine months ended September 2009:

Third Quarter and First Nine Months of 2009 Financial Highlights

-               Sales for the third quarter of 2009 amount to $9.52 million as compared with $9.54 million in the prior-year quarter. Sales for the nine months of 2009 were $ 26.6 million as compared to $28.9 million a year ago despite the global economic weakness this year.

-               Gross profit for the third quarter and first nine months of 2009 was $3.2 million and $8.1 million, respectively, compared to $2.2 million and $7.4 million a year ago, representing a dramatic increase of 48.3% and 9.5%, respectively. Gross margin as a percentage of sales for the third quarter and first nine months of 2009 increased by 11% to 34% (from 23%) and by 5% to 30% (from 25%), respectively, compared to a year ago. This significant year-over-year increase in gross profits was mainly attributable to the shift to high profit margin products and operational efficiency.

-               Net profit for the third quarter was $0.88 million (9% of sales) or $0.03 per share compared to $0.77 million (8% of sales) or a $0.02 per share in the same quarter a year ago. For the first nine months of 2009, net profit was $2.22 million (8% of sales) or $0.06 per share compared to $1.41 million (5% of sales) or a $0.05 per share for the same period a year ago.

“I am very pleased with our operational achievements as reflected by the outstanding financial results even though we had experienced severe global economic slowdown.” said Gang Chai, President & CEO, “Our strategy of continuous product innovation and improvement and key customer service has been proven to be successful even in an economic recession. With the recovery of the world economy in sight, we are well positioned to begin a new round of growth”.

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McVICAR INDUSTRIES INC.
PRESS RELEASE
Sep. 18, 2009
Trading Symbol: MCV

McVICAR APPOINTS NEW DIRECTOR: McVicar Industries Inc. (the "Company", "McVicar") is pleased to announce the appointment of Mr. Alfred G. Wirth as a Director and Audit Committee member of the Company, subject to regulatory approval.

Mr. Wirth has over 30 years of experience in global investment and financing. Prior to joining McVicar, Mr. Wirth founded Wirth Associates Inc., investment counsel to high net worth individuals. Before that, he had served as Chief Investment Officer of Sun Life, United Funds, and Crown Life. He co-authored Euromoney's book Private Placements, and has served on many organizations including Accel Partners, American Council of Life Insurance, C.D.Howe Institute, Financial Services Commission of Ontario, Genstar Capital, Heart & Stroke Foundation, Helix Investments, Institute for Research on Public Policy, St. Andrews College, SOS Children's Villages, and Toronto Stock Exchange.

"I am delighted Mr. Wirth has joined our Board." commented Dr. Gang Chai, President and CEO of McVicar Industries Inc. "His broad knowledge and extensive experience in investments and financing greatly enhances our present board of directors, which was more on the technical and managerial side. Mr. Wirth will play an important role in profiling McVicar in the investment community".

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McVICAR INDUSTRIES INC.
PRESS RELEASE
Aug. 31, 2009
Trading Symbol: MCV

McVICAR ANNOUNCES SECOND QUARTER RESULTS: McVicar Industries Inc. ("McVicar" or the "Company") is pleased to announce that it has filed its interim financial statements and management's discussion and analysis (MD&A) for the second quarter ended June 30, 2009. The detailed financial statements and MD&A can be found on www.sedar.com. All amounts are in Canadian dollars unless otherwise noted.

McVicar is divided into two operating segments: The Chemical segment, which includes the production and sale of specialized refined chemical products, and The Technical segment, which includes the production and sale of terminal blocks, PCB connectors, and customized design electrical connectors.

Second Quarter and First Half of 2009 Financial Highlights
    ----------------------------------------------------------
    -   Sales for the 2009 second quarter were $8.64 million, compared with
        $10.3 million in the 2008 period. For the first half of 2009, sales
        were $17.1 million, down from $19.3 million in the 2008 period. The
        decreases are primarily the result of reduced demands caused by
        global economic weakness.
   
    -   Gross profits for the 2009 second quarter were $2.86 million (33% of
        sales), up from $2.76 million (27% of sales) in the 2008 period. For
        the first half of 2009, Gross profits were $4.86 million (28% of
        sales), compared to $5.20 million (27% of sales) in the 2008 period.
        This increase was attributable to a number of factors, including
        lower raw material prices, less provision of obsolete inventory and
        the positive impact due to a $193,797 benefit from the sale of
        inventory written down in the fourth quarter of 2008.
   
    -   Net profits for the 2009 second quarter were $0.96 million (11% of
        sales) or $0.03 per basic and diluted share, up from $0.31 million
        (3% of sales) or a $0.01 per basic and diluted share) in the 2008
        period. For the first half of 2009, net profits were $1.35 million
        (8% of sales) or $0.04 per basic and diluted share, up from
        $0.64 million (3% of sales) or a $0.02 per basic and diluted share in
        the 2008 period.
   
    -   Cash flows generated by operation activities for the 2009 second
        quarter and first six months were $1.76 million and $4.42 million,
        respectively, compared with negative $0.31 million and negative
        $1.30 million in the comparative prior-year periods.
   
    -   Changlong reached an agreement with Longshan Chemical Co., Ltd., on
        its factory relocation plan, principally regarding a share of an
        8,508,614 RMB (approximately $1.45 million CDN) Chinese government
        compensation fund attributed to Changlong.

"I am very pleased with the healthy financial results from our operations even though our revenues have been negatively impacted by the global economic slowdown. Both the net income and cash flows from our operations have increased substantially due to measures taken to operating cost controls and fixing low raw material prices." said Gang Chai, President & CEO of McVicar, "We continued to focus on a number of important priorities in the first half of 2009. We successfully enforced our key customer strategy in keeping all our key customers during the recession period. With the world economic recovery in sight, we are well positioned to begin a new round of growth".

Developments Subsequent to the End of the Second Quarter of 2009
    ----------------------------------------------------------------
    -   Received 4,100,000 RMB (approximately $ 0.7 million CDN) on the
        divestiture of 27% equity interest investment in Sino Lion.
   
    -   Jite signed a purchase agreement to acquire 56 acres of land with
        17,642 square meters of existing buildings in the Kunshan Economic
        and Technological Development Zone, Jiangsu Province, China for a
        total consideration of RMB 28 million (approximately $ 4.7 million
        CDN) in cash. Jite intends to use the purchased land to relocate its
        existing manufacturing plant in Shenzhen.

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McVICAR INDUSTRIES INC.
PRESS RELEASE
July 29, 2009
Trading Symbol: MCV

McVICAR TEMPORARILY SUSPENDS LUYUAN OPERATIONS: McVicar Industries Inc. (“McVicar” or the “Company”) announces that it has temporarily suspended the operations of Luyuan Chemical Co. Ltd. ("Luyuan"), an 80% owned subsidiary of Zhejiang Hongbo Chemical Co. Ltd. ("Hongbo"). This measure was a combined result of market conditions due to the order delay of a major US customer for the first half of 2009 and recently a number of lawsuits against Luyuan. These claim certain loans were allegedly borrowed by previous Luyuan management before acquisition by Hongbo. The total amounts related to those lawsuits are about RMB 4,000,000 (approximately $700,000), including principal and accrued interest. Luyuan has a strong defense to all claims based on the purchase agreement signed by Hongbo and the previous shareholder who, as an existing minority shareholder and current co-defendant in these lawsuits, has guaranteed all the existing and any contingent liabilities incurred prior to the acquisition.

Luyuan’s 80% equity interest was initially acquired by Hongbo in early 2008 for a total cash consideration of approximately $750,000, with the aim to secure the raw material for Hongbo’s electronic chemicals for its major US customer. The suspension of Luyuan’s operation will not present a significant impact on Hongbo’s production as the current level of inventory supplied from Luyuan will be adequate for Hongbo over the next six months.

Resumption of Luyuan’s operations will depend in part on how well and when the lawsuits are settled.

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McVICAR INDUSTRIES INC.
PRESS RELEASE
June 30, 2009
Trading Symbol: MCV

McVICAR DIRECTOR RETIRES: McVicar Industries Inc. ("McVicar" or the "Company") announces that Raymond Morley ("Ray") has retired from the board of directors. Ray was a founding director in the original formation of McVicar with Gang Chai, current President and CEO, back when the company was named McVicar Minerals Inc. in the late 1990's. Ray continued as a director through the many changes in the Company, the reverse take-over of McVicar Minerals Inc. with Hanfeng Evergreen Inc. and the subsequent spin-off of its resource properties to McVicar Resources Inc., to its current position in the chemical and technology industry as McVicar Industries Inc.

Ray's experience and insight helped guide McVicar in its financing and continuous growth. His contributions to the Company will be remembered.

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McVICAR INDUSTRIES INC.
PRESS RELEASE
June 9, 2009
Trading Symbol: MCV

McVICAR WITHDRAWAL FROM JOINT VENTURE WITH SINO-LION: McVicar Industries Inc. ("McVicar" or the "Company") announces that it has obtained Chinese government approval on
McVicar's withdrawal from the joint venture with Sino Lion (USA) Ltd. on Sino-Lion Nanjing Ltd., as previously announced on October 2, 2008. The Company's twenty-seven percent (27%) equity interest in Sino Lion Nanjing Ltd. was sold for a cash consideration of US $850,000 to a holding company controlled by one of the directors of Sino Lion (USA) Ltd.

This disposal has no material impact on the other chemical businesses McVicar currently owns or controls.

McVicar is a TSX Venture Exchange listed company engaged in industrial chemical production and distribution. The majority of McVicar's business activities are focused in China.
 

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McVICAR INDUSTRIES INC.
PRESS RELEASE
June 1, 2009
Trading Symbol: MCV

MCVICAR ANNOUNCES FIRST QUARTER RESULTS: McVicar Industries Inc. ("McVicar" or the
"Company") is pleased to announce that it has filed its interim financial statements and management's discussion and analysis (MD&A) for the first quarter ended March 31, 2009. The detailed financial statements and MD&A can be found on www.sedar.com . All amounts are in Canadian dollars unless otherwise noted.

     Highlights of the first quarter results:

     -   Sales for the first quarter of 2009 was $8.4 million, a decrease of
         $ 0.7 million or 8%, compared to $ 9.1 million for the same quarter
         in 2008. This decrease was mainly due to the impact of global
         recession on both chemical and technical business. Sales generated
         from chemical business were $ 4.4 million for the first quarter of
         2009, a decrease of $0.5 million or 9%, compared to $ 4.8 million for
         the same period of 2008. Sales from the technical business were
         $4.0 million for the first quarter of 2009, a decrease of
         $0.2 million or 5%, compared to $ 4.2 million for the same period of
         2008.

     -   Gross profit for the first quarter of 2009 was $2.0 million, a
         decrease of $ 0.4 million, compared to $ 2.4 million for the same
         period of 2008 as a result of decreases in sales. Gross profit as a
         percentage of sales for the first quarter of 2009 was 24%, a drop of
         3%, compared to 27% for the same period of 2008. This decrease was
         caused by a number of factors, such as lower sales volume, product
         mix, and cut in selling prices, partially offset by the positive
         impact due to an $111,602 benefit from the sale of inventory written
         down in the fourth quarter of 2008.

     -   Operating expenses for the first quarter of 2009 were $ 1.43 million,
         versus $1.41 million for the same period of 2008. Operating expenses
         as a percentage of sales for the first quarter of 2009 was 17%,
         compared to 16% for the first quarter of 2008, an increase of 1%.

     -   Net income for the first quarter of 2009 was $ 386,457 or $0.01 per
         share compared to $ 327,775 or $0.01 per share for the same period of
         2008. This increase in net income was mainly due to the increase of
         ownership interest in chemical business, 90.5% in 2009 versus 51% in
         2008, and positive impact of an appreciation of the Chinese RMB. Net
         income as a percentage of sales was 5% for the first quarter of 2009
         compared to 4% for the same period of 2008.

     "The economic slowdown has negatively impacted the growth trend of our sales and gross margins," said Gang Chai, President & CEO of McVicar, "However, we took the opportunity to reshape our business structure, reorganize our product mix, and re-enforce business relationships with our key customers in the chemical business. Those changes were aimed in repositioning
our company for long-term success".
 

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McVICAR INDUSTRIES INC.
PRESS RELEASE
May 5, 2009
Trading Symbol: MCV

MCVICAR ANNOUNCES FISCAL 2008 YEAR END FINANCIAL RESULTS: McVicar Industries Inc. ("McVicar" or the "Company"), formerly McVicar Resources Inc., is pleased to announce its financial results and management's discussion and analysis (MD&A) for the fourth quarter and the year ended December 31, 2008. The detailed financial statements and MD&A can be found on www.sedar.com . All amounts are in Canadian dollars unless otherwise noted.

     -   Consolidated revenues grew 34 percent to $36.7 million.

     -   Revenues from chemical business doubled to $18.9 million.

     -   Cash provided by operating activities grew 11 times to $1.3 million.

     -   Holding interest in MAM increased to 90.5% from 51%.

     Some highlights of the annual and fourth quarter results:

     -   Consolidated revenues for the fourth quarter 2008 increased to
         $7.9 million, or 12%, from $7.0 million for the same period last
         year. For the twelve months ended December 30, 2008, revenues
         increased to $36.7 million, or 34%, from $27.5 million for the same
         period last year. The significant year-over-year increases in sales
         are attributable primarily to strong growth in the Company's chemical
         business.

     -   Gross profit for the fourth quarter and for the twelve months ended
         December 31, 2008 was $1.2 million and $8.5 million, versus
         $1.4 million and $7.2 million for the same period last year,
         respectively. Gross profit as a percentage of sales decreased from
         20% to 15% in the fourth quarter, and from 26% to 23% for the year,
         compared with the same period last year. This decrease was mainly due
         to margin shrinking in both technical and chemical products. This was
         caused by a number of factors, including higher sales volume, product
         mix, overall increase in its raw material prices and labour cost and
         higher provision for slow moving or obsolete inventories.

     -   Excluding one-time items in both years such as impairment of goodwill
         and intangible assets, provision for inventories, gain on disposal of
         investment (subsidiary) and investment income, operating income
         increased in 2008 by 270% to $2.1 million or $0.07 per share,
         compared with pro forma $0.6 million or $0.02 per share in the prior
         year. The significant year-over-year increases in net income are
         mainly attributable to the increase in sales and cost reduction in
         technical business. Net loss for the year ended December 31, 2008 was
         $ 3.1 million or 0.10 per share, compared to net income of
         $ 2.2 million or 0.10 per share for same period of 2007.

     -   As at December 31, 2008, McVicar had cash on hand of $ 6.8 million
         and net working capital of $18 million, compared with $4.9 million
         and $10 million in 2007 respectively. The increase in working capital
         is primarily due to the significant increase in cash provided by
         operating activities and increases in accounts receivable and
         inventory and decrease in accounts payable as a result of increase in
         sales.

     -   Cash provided by operating activities for the year ended December 31,
         2008 was $1.3 million, an increase of $1.2 million or 1132%, compared
         to $105,000 for the same period last year. The significant increase
         was mainly attributable to increase in sales and tight cost control
         measure taken technical business.

     Business Highlights

     -   On April 21, 2008, Zhejiang Hongbo Chemical Co. Ltd. ("Hongbo"), a
         subsidiary of McVicar, closed an acquisition of an 80% interest in
         Luyuan Chemical Co. Ltd. ("Luyuan") in Xiangshui city, China, for a
         total cash consideration of 4 million RMB (approximately
         CDN $ 0.6 million). Luyuan is a manufacturer and supplier of
         specialized chemical products for industrial markets. One of Luyuan's
         main products is a key raw material in the intermediate chemicals
         that Hongbo manufactures.

     -   On May 30, 2008, the Company completed a private placement of
         2,183,073 common shares for gross proceeds of $3,056,302 at a price
         of $ 1.40 per unit. Each unit consisted of one common share of
         McVicar and one-half of one common share purchase warrant. Proceeds
         from the Offering will be used primarily to fund the acquisition and
         working capital needs for chemical business.

     -   On July 28, 2008, the Company increased its ownership in McVicar
         (Hong Kong) Advanced Materials Co. Ltd., ("MAM"), from 51% to 90.5%
         by way of purchase of shares held by Shining Palace Holding Co.
         Limited ("Shining Palace"). The total consideration was satisfied by
         the issue of 5,239,800 units of the Company at an agreed issue price
         of $1.40 per unit, each unit consisted of one common share of McVicar
         and one-half of one common share purchase warrant.

     -   On September 27, 2008, the Company registered its China operational
         office, McVicar (Hang Zhou) Management Co. Ltd., ("McVicar (HZ)"),
         which was wholly owned by MAM, with a total registered capital of
         USD $2 million (approximately CDN $ 2.4 million). The main
         consideration to set up this operational office in Hangzhou, China is
         to centralize the Company's chemical subsidiaries' R&D resources and
         sales with the expectation to enhance our competence in China.

     -   On September 26, 2008, the Company reached an agreement with Ascend
         Technologies Ltd. on the sale of our 27% equity interest in Sino Lion
         Nanjing Ltd.(" Sino Lion"), based in Nanjing, China. The transaction
         is valued at USD$ 850,000 in cash consideration and is expected to
         close in the second quarter of 2009.

     -   On September 15, 2008, JITE consolidated the outstanding common
         shares at a ratio of 1 consolidated share for 5 pre-consolidated
         shares. The Company's holding interest in JITE remains unchanged
         after its share consolidations.

     "2008 saw noticeable growth in sales and operating income given current economic and market conditions," said Gang Chai, McVicar's President and CEO. "This year, with continuing efforts to expand our business, especially in the chemical industry through strategic acquisitions, we also focused on improving operational efficiency to support profitable growth, which is critical for us, to thrive in this competitive marketplace and to face the challenging economy in 2009."
 

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McVICAR INDUSTRIES INC.
PRESS RELEASE
January 7, 2009
Trading Symbol: MCV

MCVICAR ACQUIRES REMAINING MINORITY INTEREST IN ITS HONGKONG SUBSIDIARY: McVicar Industries Inc. ("McVicar") announces that its Hong Kong subsidiary, McVicar (Hongkong) Advanced Materials Co. Ltd. ("MAM"), has reached an agreement with Sanlong Holdings Co. Ltd. ("Sanlong")
to exchange Sanlong's 9.5% equity interest in MAM for a 38% equity interest in MAM's subsidiary Hangzhou Changlong Chemical Co. Ltd. ("Changlong"). As a result of this transaction, McVicar's interest in MAM will be increased from 90.5% to 100% while MAM's interest in Changlong will go from 100% to 62%.

Completion of this transaction is subject to applicable regulatory approval.

     About McVicar:

Headquartered in Toronto, Canada, McVicar Industries Inc. is focused on the specialty chemical business through interests in companies operating in the People's Republic of China. McVicar's operating companies include: Zhejiang Hongbo Chemical Co. Ltd., Hongzhou Changlong Chemical Co. Ltd., and Jiangsu Luyuan Chemical Co. Ltd., all of which are specialty chemical companies serving the personal care, pharmaceutical and industrial markets.


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