Bon Natural Life Limited Announces Record First Half-Year Revenue and Net Income
- Total revenue increased by 3.4%
- Health supplements revenue increased by 37.2%
- Gross profit increased for fragrance compounds and health supplements
- Fragrance compounds revenue decreased by 8.4%
- Bioactive food ingredients revenue decreased by 5.2%
- Net income decreased
- Net cash used in operating activities increased
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 a3.4% 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 or7.1% 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 | ( | |
Health Supplements (Powder Drinks) | ||
Bioactive Food Ingredients | ( |
Fragrance Compounds
Revenues from sales of fragrance compound products decreased by
Gross profit from fragrance compound products increased by
Health Supplements (Powder Drinks)
Revenues from sales of health supplement (powder drinks) products increased by
Gross profit from health supplement (powder drinks) products increased by
Bioactive Food Ingredients
Revenues from sales of bioactive food ingredient products decreased by
Gross profit from bioactive food ingredient products increased by
General and administrative expenses increased by
Research and development (“R&D”) expenses decreased by
Government subsidies received in the form of provincial-level export credit insurance subsidy and unemployment insurance expansion grant totaled
Net income decreased from
Net cash used in operating activities during the six months ended March 31, 2023 was
Diluted earnings per share ("EPS") was
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, | 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 | $ | - |