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Bon Natural Life Limited Announces Record First Half-Year Revenue and Net Income

Bon Natural Life Limited
Bon Natural Life Limited

XI’AN, China, Sept. 11, 2023 (GLOBE NEWSWIRE) -- Bon Natural Life Limited (Nasdaq: BON) (“BON” or the “Company”), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, today announced its half-year financial results for the six months ended March 31, 2023.

1H-2023 Financial Highlights

  • Revenue - Total revenues were $14.1 million, representing a 3.4% increase from US$13.7 million for the same period in 2022.

  • Income from operation – for the six months ended March 31, 2023 was $2,985,234 increase of $196,875 or 7.1% as compared to $2,788,359 in the same period of 2022.

  • Net income attributable to BON Natural Life Limited - for the six months ended March 31, 2023 was $2,119,760 as compared to $2,548,678 in the same period of 2022.

  • Earnings per share – Basic earnings per share was $0.24 for the six months ended March 31, 2023 as compared to $0.31 in the same period of 2022. Diluted earnings per share was $0.24 for the six months ended March 31, 2023 as compared to $0.30 in the same period of 2022.

1H-2023 Product Categories Summary: Growth vs. Prior Year

 

Revenues increase (decrease)

Gross Profits increase (decrease)

Fragrance Compounds

(8.4%)

12.3%

Health Supplements (Powder Drinks)

37.2%

21.0%

Bioactive Food Ingredients

(5.2%)

20.0%


Fragrance Compounds

Revenues from sales of fragrance compound products decreased by 8.4% to US$6.8 million in the six months ended March 31, 2023 from US$7.4 million for the same period in 2022. The decrease was primarily attributable to a 10.1% decrease in average selling price and a 9.5% negative impact from currency exchange, partially offset by an increase of 1.8% in sales volume.

Gross profit from fragrance compound products increased by 12.3% to US$2.0 million from US$1.8 million for the same period in 2022. The increase was primarily attributable to a 16.6% decrease in cost of products due to our ability to negotiate better price from suppliers and an increase of 1.8% in sales volume, partially offset by a 9.5% negative impact from currency exchange.

Health Supplements (Powder Drinks)

Revenues from sales of health supplement (powder drinks) products increased by 37.2% to US$4.6 million in the six months ended March 31, 2023 from US$3.3 million for the same period in 2022. The increase was primarily attributable to an increase of 50% in sales volume and partially offset by a 9.5% negative impact from currency exchange.

Gross profit from health supplement (powder drinks) products increased by 21.0% to US$1.4 million from US$1.2 million for the same period in 2022. The increase was primarily attributable to the above referenced factors.

Bioactive Food Ingredients

Revenues from sales of bioactive food ingredient products decreased by 5.2% to US$2.8 million in the six months ended March 31, 2023 from US$2.9 million for the same period in 2022. The decrease was primarily attributable to a 7.5% decrease in average price and a 9.5% negative impact from currency exchange, partially offset by a 2.4% increase in sales volume due to strong customer demand and sales effort.

Gross profit from bioactive food ingredient products increased by 20.0% to US$1.3 million from US$1.1 million for the same period in 2022. The increase was mainly due to a 2.4% increase in sales volume and a decrease of 21.7% in cost of products due to the decreased raw materials purchase price, partially offset by a 9.5% negative impact from currency exchange.

General and administrative expenses increased by $467,012, or approximately 46.8%, from $998,943 in the six months ended March 31, 2022, to $1,465,955 in the same period of 2023, mainly attributable to an increase of 44.2% in staff payroll due to the increase in staff headcount, a 234.8% increase in rent expenses and a 42.7% increase in expenses such as professional service and consulting fees and investor relation expenses, etc. as we become a public company since we completed the IPO in July 2021.

Research and development (“R&D”) expenses decreased by $34,680, or approximately 21.1%, from $164,675 in the six months ended March 31, 2022, to $129,995 in the same period of 2023. The decrease was mainly due to a 79.3% decrease in staff payroll and a 34.4% decrease in outsourcing R&D activities to external consulting firms.

Government subsidies received in the form of provincial-level export credit insurance subsidy and unemployment insurance expansion grant totaled $11,916 in the six months ended March 31, 2023.

Net income decreased from $2.5 million in the six months ended March 31, 2022 to $2.1 million in the same period of 2023.

Net cash used in operating activities during the six months ended March 31, 2023 was $2,177,992 compared to net cash used in operating activities of $130,577 in the same period of 2022.

Diluted earnings per share ("EPS") was $0.24, compared to $0.30 for the same period in 2022.

Investors are encouraged to review the Company’s complete financial statements and related disclosures for additional information. These materials are available at https://www.sec.gov/edgar/browse/?CIK=1816815&owner=exclude

About Bon Natural Life Limited

The Company focuses on the manufacturing of personal care ingredients, such as plant extracted fragrance compounds for perfume and fragrance manufacturers, natural health supplements such as powder drinks and bioactive food ingredient products mostly used as food additives and nutritional supplements by their customers. For additional information, please visit the Company’s website at www.bnlus.com.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the natural, health and personal care market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Bon Natural Life
Cindy Liu | IR
Email: bonnatural@appchem.cn


BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 

 

As of

 

 

 

March 31, 2023

 

 

September 30, 2022

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

542,272

 

 

$

840,861

 

Accounts receivable, net

 

 

9,260,407

 

 

 

6,784,307

 

Inventories, net

 

 

1,803,374

 

 

 

1,722,120

 

Advance to suppliers, net

 

 

7,644,920

 

 

 

4,091,990

 

Acquisition deposit

 

 

1,000,000

 

 

 

1,000,000

 

Prepaid expenses and other current assets

 

 

3,967,756

 

 

 

277,509

 

TOTAL CURRENT ASSETS

 

 

24,218,729

 

 

 

14,716,787

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

22,135,274

 

 

 

21,624,437

 

Intangible assets, net

 

 

373,751

 

 

 

366,167

 

Right-of-use lease assets, net

 

 

450,282

 

 

 

546,690

 

Deferred tax assets, net

 

 

29,023

 

 

 

2,768

 

TOTAL ASSETS

 

$

47,207,059

 

 

$

37,256,849

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Short-term loans

 

$

2,666,457

 

 

$

2,424,587

 

Current portion of long-term loans

 

 

1,934,411

 

 

 

2,135,979

 

Accounts payable

 

 

324,240

 

 

 

214,585

 

Due to related parties

 

 

120,203

 

 

 

72,836

 

Taxes payable

 

 

1,676,714

 

 

 

1,239,708

 

Deferred revenue

 

 

989,027

 

 

 

188,745

 

Accrued expenses and other current liabilities

 

 

3,503,550

 

 

 

114,431

 

Finance lease liabilities, current

 

 

-

 

 

 

26,285

 

Operating lease liability, current

 

 

247,397

 

 

 

230,182

 

TOTAL CURRENT LIABILITIES

 

 

11,461,999

 

 

 

6,647,338

 

 

 

 

 

 

 

 

 

 

Long-term loans

 

 

30,336

 

 

 

189,813

 

Operating lease liability, noncurrent

 

 

212,955

 

 

 

327,202

 

TOTAL LIABILITIES

 

$

11,705,290

 

 

$

7,164,353

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 11,146,226 and 8,396,226 shares issued and outstanding as of March 31, 2023 and September 30, 2022, respectively

 

 

1,115

 

 

 

840

 

Additional paid in capital

 

 

17,946,174

 

 

 

15,711,450

 

Statutory reserve

 

 

1,804,116

 

 

 

1,804,116

 

Retained earnings

 

 

16,796,529

 

 

 

14,676,769

 

Accumulated other comprehensive income

 

 

(1,559,550

)

 

 

(2,631,171

)

TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY

 

 

34,988,384

 

 

 

29,562,004

 

Non-controlling interest

 

 

513,387

 

 

 

530,492

 

TOTAL SHAREHOLDERS’ EQUITY

 

 

35,501,771

 

 

 

30,092,496

 

TOTAL LIABILITIES AND EQUITY

 

$

47,207,059

 

 

$

37,256,849

 


BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)

 

 

For the six months ended
March 31,

 

 

 

2023

 

 

2022

 

REVENUE

 

$

14,149,967

 

 

$

13,688,400

 

COST OF REVENUE

 

 

(9,432,619

)

 

 

(9,652,453

)

GROSS PROFIT

 

 

4,717,348

 

 

 

4,035,947

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Selling expenses

 

 

(136,164

)

 

 

(83,970

)

General and administrative expenses

 

 

(1,465,955

)

 

 

(998,943

)

Research and development expenses

 

 

(129,995

)

 

 

(164,675

)

Total operating expenses

 

 

(1,732,114

)

 

 

(1,247,588

)

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

 

2,985,234

 

 

 

2,788,359

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES)

 

 

 

 

 

 

 

 

Interest income

 

 

8,732

 

 

 

589

 

Interest expense

 

 

(178,557

)

 

 

(277,764

)

Unrealized foreign transaction exchange loss

 

 

8,452

 

 

 

(16,994

)

Government subsidies

 

 

11,916

 

 

 

542,256

 

Income from short-term investments

 

 

-

 

 

 

12,419

 

Other income

 

 

(223,043

)

 

 

43,532

 

Total other income, net

 

 

(372,501

)

 

 

304,038

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX PROVISION

 

 

2,617,733

 

 

 

3,092,397

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

(510,077

)

 

 

(562,737

)

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

2,102,656

 

 

 

2,529,660

 

Less: net loss attributable to non-controlling interest

 

 

(17,104

)

 

 

(19,018

)

NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED

 

$

2,119,760

 

 

$

2,548,678

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

2,102,656

 

 

 

2,529,660

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Total foreign currency translation adjustment

 

 

1,071,621

 

 

 

485,503

 

TOTAL COMPREHENSIVE INCOME

 

 

3,174,277

 

 

 

3,015,163

 

Less: comprehensive loss attributable to non-controlling interest

 

 

(17,104

)

 

 

(21,314

)

COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED

 

$

3,191,381

 

 

$

3,036,477

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

0.31

 

Diluted

 

$

0.24

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

 

 

 

 

 

 

 

 

Basic

 

 

8,918,309

 

 

 

8,350,381

 

Diluted

 

 

8,979,243

 

 

 

8,386,306

 


BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

 

For the six months ended
March 31,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

2,102,656

 

 

$

2,529,660

 

Adjustments to reconcile net income to cash provided by operating activities

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

 

-

 

 

 

187

 

Depreciation and amortization

 

 

282,888

 

 

 

112,945

 

Inventory reserve

 

 

105,314

 

 

 

-

 

Deferred income tax

 

 

(25,749

)

 

 

(28

)

Amortization of operating lease right-of-use assets

 

 

114,179

 

 

 

33,122

 

Amortization of stock options

 

 

35,000

 

 

 

89,820

 

Unrealized foreign currency exchange loss

 

 

(8,452

)

 

 

16,994

 

Gain on disposal of property and equipment

 

 

-

 

 

 

(745

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,198,450

)

 

 

(1,265,109

)

Inventories

 

 

(124,601

)

 

 

(515,690

)

Advance to suppliers, net

 

 

(3,353,433

)

 

 

977,033

 

Prepaid expenses and other current assets

 

 

(3,595,458

)

 

 

(38,795

)

Accounts payable

 

 

100,386

 

 

 

165,741

 

Operating lease liabilities

 

 

(115,170

)

 

 

(30,589

)

Taxes payable

 

 

386,510

 

 

 

(1,806,543

)

Deferred revenue

 

 

781,183

 

 

 

(440,032

)

Accrued expenses and other current liabilities

 

 

3,335,205

 

 

 

41,452

 

Net cash used in operating activities

 

 

(2,177,992

)

 

 

(130,577

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of short-term investments

 

 

-

 

 

 

(3,678,199

)

Proceeds upon redemption of short-term investments

 

 

-

 

 

 

5,273,186

 

Purchase of property and equipment

 

 

(15,131

)

 

 

(10,231

)

Proceeds from sales of property and equipment

 

 

-

 

 

 

1,659

 

Capital expenditures on construction-in-progress

 

 

(2,970

)

 

 

(3,577,995

)

Net cash used in investing activities

 

 

(18,101

)

 

 

(1,991,580

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Net proceeds from issuance of Ordinary Shares in initial public offerings

 

 

2,200,000

 

 

 

-

 

Proceeds from short-term loans

 

 

259,767

 

 

 

1,608,378

 

Proceeds from long-term loans

 

 

-

 

 

 

594,864

 

Repayment of short-term loans

 

 

(79,165

)

 

 

(41,945

)

Repayment of long-term loans

 

 

(437,412

)

 

 

(393,343

)

Proceeds from (repayment of) borrowings from related parties

 

 

(1,038

)

 

 

91,965

 

Principal repayment of capital lease

 

 

(27,236

)

 

 

(89,465

)

Net cash provided by financing activities

 

 

1,914,916

 

 

 

1,824,454

 

 

 

 

 

 

 

 

 

 

Effect of changes of foreign exchange rates on cash

 

 

(17,412

)

 

 

2,915

 

Net decrease in cash

 

 

(298,589

)

 

 

(294,788

)

Cash, beginning of period

 

 

840,861

 

 

 

1,903,867

 

Cash, end of period

 

$

542,272

 

 

$

1,609,079

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest expense

 

$

178,557

 

 

$

277,764

 

Cash paid for income tax

 

$

500,251

 

 

$

785,853

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Amortization of share-based compensation for initial public offering services

 

$

35,000

 

 

$

89,820

 

Right-of-use assets obtained in exchange for operating lease obligations

 

$

458,181

 

 

$

-

 


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