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

2023-09-11

财报

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 $-