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

-1H-2021 Revenue increases by 63.6% to $11.7 million-

XI'AN, China, Aug. 17, 2021 /PRNewswire/ -- 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, 2021.

1H-2021 Financial Highlights

• Total net revenues were US$11.7 million, representing a 63.6% increase from US$7.1 million for the same period in 2020.
• Gross profit increased by 32.2% to US$3.4 million from US$2.6 million for the same period in 2020.
• Net income increased by 43.9% to US$2.30 million from US$1.59 million for the same period in 2020.
• Diluted earnings per share ("EPS") was $0.40, compared to $0.30 for the same period in 2020.
• Cash flow from operations was $2.0 million, compared to $0.5 million for the same period in 2020.

Management Commentary

"The accelerating growth in our record revenue and earnings is a great way to mark our first reported results as a public company and creates a solid foundation for us to build upon," Said Richard Hu, BON's Chairman & CEO, "Our well-known brand combined with our quality product offering provide a great value proposition to our customers and has positioned us to gain additional market share during this time of increased demand. I am encouraged by the pace of our new business wins this year as well as the robust growth of our sales pipeline. We will continue to optimize our sales strategy to shift to larger enterprise clients and to lower our manufacturing cost to support sustainable long-term profitability. I want to recognize our hardworking team for their tireless efforts and thank our loyal customers for their trust in us. The timing of our expansion with the Yumen Plant could not come at a more opportune time.  We are seeing more demand for our products and  this new facility will come online just in time for us to meet our customers' requirements. We are confident that our technology, business model and strategy would enable us to gain more market share and maintain our growth momentum."

1H-2021 Product Categories Summary: Growth vs. Prior Year

Fragrance Compounds

• Revenue from sales of fragrance compound products increased by 133.0% to US$6.0 million from US$2.6 million for the same period in 2020. The increase was primarily attributable to the increase in sales volume and average selling price.
• Gross profit from fragrance compound increased by 226.9% from US$358.3 thousand to US$1.2 million for the same period in 2020. The increase was attributable to the increase in sales volume, increase in average order size, and average selling price.

Health Supplements (Powder Drinks)

• Revenue from sales of health supplement (powder drinks) products increased by 338.4% to US$4.7 million from US$1.1 million for the same period in 2020. The increase was attributable to the increase in sales volume.
• Gross profit from health supplement (powder drinks) increased by 306.0% from US$452.3 thousand to US$1.8 million for the same period in 2020. The increase was primarily due to the increase in sales volume, which is a result of the increased number of customers, partially offset by the increase in average unit cost.

Bioactive Food Ingredients

• Revenue from sales of bioactive food ingredient products decreased by 69.7% to US$1.1 million from US$3.5 million for the same period in 2020. The decrease was mainly attributable to a decrease in sales volume and average selling price as we received less customer orders of stachyose, our major bioactive food ingredient product, when COVID-19 spread had been subdued in China during six months ended March 31, 2021.
• Gross profit of our bioactive food ingredient products decreased by 79.0% to $365.9 thousand from $1.7 million for the same period in 2020. This decrease was primarily due to the decrease in sales volume and average selling price for the above referenced reason.

General and administrative expenses decreased by $132,164, or approximately 16.3%, from $811,799 in the six months ended March 31, 2020, to $679,635 in the same period of 2021, mainly attributable to a $197,327 decrease in professional consulting service fees during the six months ended March 31, 2021, as the Company incurred higher consulting service fees and higher audit fees in connection with our IPO in the six months ended March 31, 2020.

Government subsidies received in the form of a grant and recognized as other operating income totaled $446,910 and $332,418 in the six months ended March 31, 2021 and 2020, respectively.

Net income increased from $1.6 million in the six months ended March 31, 2020 to $2.3 million in the same period of 2021.

Net cash provided by operating activities during the six months ended March 31, 2021 was $2.0 million compared to $0.5 million in the same period of 2020.

Diluted earnings per share ("EPS") was $0.40, compared to $0.30 for the same period in 2020.

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.

Subsequent Events

• On July 6, 2021, the Company received the certificate of a land use right for the future site of its third production facility in the city of Yumen, and officially broke ground on construction on July 29th
• Mr. Hu was a keynote speaker at the WPE-WHPE 2021, the largest natural health industry exhibition in China which was held between July 28^th and July 30^th in 2021.

Investor Conference Call and Webcast

A live webcast to discuss the Company's 1H 2021 financial results will be held on August 17, 2021, beginning at 8:30 a.m. EST. The webcast and accompanying slide presentation may be accessed on the Company's IR website at https://ir.bnlus.com/events-presentations/. The webcast also can be accessed by using the direct link: https://services.choruscall.com/mediaframe/webcast.html?webcastid=WCdGNEV5

For those unable to listen to the live webcast, a recorded version will be available on the Company's website after the event.

Pre-registration: https://dpregister.com/sreg/10159604/ec6c783af0

Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the operator. Participants may pre-register at any time, up to and including after the time that the call has started.

Those without internet access or unable to pre-register may dial in by calling:

U.S. Toll Free: 1-866-777-2509 | International Toll: 1-412-317-5413

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:

In the United States:                                                      In China:
Maggie Zhang | Impact IR                                             Sophie Zhang | Impact IR
Phone: (646) 893-8916                                                 Email: sophie.zhang@irimpact.com            
Email: maggie.zhang@irimpact.com 

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SOURCE Bon Natural Life Limited