-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
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
Revenues increase (decrease) |
Gross Profits increase (decrease) |
|
Fragrance Compounds |
133.0% |
226.9% |
Health Supplements (Powder Drinks) |
338.4% |
306.0% |
Bioactive Food Ingredients |
(69.7%) |
(79.0%) |
Fragrance Compounds
Health Supplements (Powder Drinks)
Bioactive Food Ingredients
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
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
BON NATURAL LIFE LIMITED AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
As of |
|||||||
March 31, 2021 |
September 30, 2020 |
||||||
ASSETS |
|||||||
CURRENT ASSETS |
|||||||
Cash |
$ |
1,040,607 |
$ |
53,106 |
|||
Accounts receivable, net |
8,869,747 |
5,771,008 |
|||||
Inventories, net |
1,446,516 |
1,016,442 |
|||||
Advance to suppliers, net |
1,894,359 |
3,491,145 |
|||||
Deferred initial public offering costs |
984,162 |
510,079 |
|||||
Prepaid expenses and other current assets |
106,786 |
7,434 |
|||||
TOTAL CURRENT ASSETS |
14,342,177 |
10,840,214 |
|||||
Property, plant and equipment, net |
14,590,470 |
14,171,963 |
|||||
Intangible assets, net |
144,126 |
140,993 |
|||||
Right-of-use lease assets, net |
229,532 |
||||||
Deferred tax assets, net |
37,032 |
49,059 |
|||||
TOTAL ASSETS |
$ |
29,343,337 |
$ |
25,202,229 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
CURRENT LIABILITIES |
|||||||
Short-term loans |
$ |
1,823,215 |
$ |
1,289,081 |
|||
Current portion of long-term loans |
2,318,528 |
1,227,346 |
|||||
Third party loans |
- |
690,327 |
|||||
Accounts payable |
577,311 |
1,288,629 |
|||||
Due to related parties |
1,019,128 |
2,322,990 |
|||||
Taxes payable |
5,688,786 |
4,402,625 |
|||||
Accrued expenses and other current liabilities |
1,275,936 |
442,582 |
|||||
Finance lease liabilities, current |
148,983 |
33,389 |
|||||
Operating lease liability, current |
57,051 |
||||||
TOTAL CURRENT LIABILITIES |
$ |
12,908,938 |
$ |
11,696,969 |
|||
Long-term loans |
2,106,180 |
2,482,251 |
|||||
Finance lease liabilities, noncurrent |
110,499 |
- |
|||||
Operating lease liability, noncurrent |
176,701 |
- |
|||||
TOTAL LIABILITIES |
15,302,318 |
14,179,220 |
|||||
COMMITMENTS AND CONTINGENCIES EQUITY |
|||||||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, |
$ |
580 |
$ |
580 |
|||
Additional paid in capital |
5,567,873 |
5,251,205 |
|||||
Statutory reserve |
579,922 |
579,922 |
|||||
Retained earnings |
7,384,071 |
5,072,672 |
|||||
Accumulated other comprehensive income (loss) |
15,421 |
(388,102) |
|||||
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS' |
13,547,867 |
10,516,277 |
|||||
Non-controlling interest |
493,152 |
506,732 |
|||||
Total equity |
14,041,019 |
11,023,009 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
29,343,337 |
$ |
25,202,229 |
|||
*Retrospectively restated for effect of 1-for-3 shares reverse split. |
BON NATURAL LIFE LIMITED AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
|||||||
(UNAUDITED) |
|||||||
For the six months ended March 31, |
|||||||
2021 |
2020 |
||||||
REVENUE |
$ |
11,698,830 |
$ |
7,149,785 |
|||
COST OF REVENUE |
(8,325,148) |
(4,597,617) |
|||||
GROSS PROFIT |
3,373,682 |
2,552,168 |
|||||
OPERATING EXPENSES |
|||||||
Selling expenses |
(52,666) |
(59,765) |
|||||
General and administrative expenses |
(679,635) |
(811,799) |
|||||
Research and development expenses |
(106,998) |
(128,481) |
|||||
Total operating expenses |
(839,299) |
(1,000,045) |
|||||
INCOME FROM OPERATIONS |
2,534,383 |
1,552,123 |
|||||
OTHER INCOME (EXPENSES) |
|||||||
Interest income |
294 |
451 |
|||||
Interest expense |
(197,168) |
(172,913) |
|||||
Unrealized foreign transaction exchange gain (loss) |
(65,691) |
(4,300) |
|||||
Government subsidies |
446,910 |
332,418 |
|||||
Other income |
41,548 |
136,482 |
|||||
Total other income (expenses) |
225,893 |
292,138 |
|||||
INCOME BEFORE INCOME TAX PROVISION |
2,760,276 |
1,844,261 |
|||||
INCOME TAX PROVISION |
(465,077) |
(249,766) |
|||||
NET INCOME |
2,295,199 |
1,594,495 |
|||||
Less: net income (loss) attributable to non-controlling interest |
(16,200) |
61,317 |
|||||
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE |
2,311,399 |
1,533,178 |
|||||
OTHER COMPREHENSIVE INCOME (LOSS) |
|||||||
Total foreign currency translation adjustment |
406,143 |
32,468 |
|||||
TOTAL COMPREHENSIVE INCOME |
2,701,342 |
1,626,963 |
|||||
Less: comprehensive income (loss) attributable to non-controlling |
(13,580) |
59,939 |
|||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON |
$ |
2,714,922 |
$ |
1,567,024 |
|||
EARNINGS PER SHARE |
|||||||
Basic and diluted |
$ |
0.40 |
$ |
0.30 |
|||
WEIGHTED AVERAGE NUMBER OF SHARES |
|||||||
Basic and diluted* |
5,800,000 |
5,166,667 |
|||||
* Retrospectively restated for effect of reverse split. |
BON NATURAL LIFE LIMITED AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
For the six months ended March 31, |
|||||||
2021 |
2020 |
||||||
Cash flows from operating activities |
|||||||
Net income |
$ |
2,295,199 |
$ |
1,594,495 |
|||
Adjustments to reconcile net income to cash provided by operating |
|||||||
Allowance for doubtful accounts |
6,323 |
23,316 |
|||||
Depreciation and amortization |
117,888 |
134,457 |
|||||
Deferred income tax |
13,879 |
(19,459) |
|||||
Amortization of operating lease right-of-use assets |
26,195 |
- |
|||||
Unrealized foreign currency exchange loss |
65,691 |
4,300 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
(2,898,493) |
(410,656) |
|||||
Inventories |
(391,958) |
482,914 |
|||||
Advance to suppliers |
1,738,442 |
(1,787,999) |
|||||
Prepaid expenses and other current assets |
(99,108) |
17,251 |
|||||
Accounts payable |
(760,103) |
(809,818) |
|||||
Operating lease liabilities |
(21,975) |
- |
|||||
Taxes payable |
1,120,847 |
905,514 |
|||||
Accrued expenses and other current liabilities |
786,942 |
412,845 |
|||||
Net cash provided by operating activities |
1,999,769 |
547,160 |
|||||
Cash flows from investing activities |
|||||||
Purchase of property and equipment |
(715) |
(26,957) |
|||||
Capital expenditures on construction-in-progress |
- |
(403,911) |
|||||
Net cash used in investing activities |
(715) |
(430,868) |
|||||
Cash flows from financing activities |
|||||||
Proceeds from short-term loans |
943,517 |
601,833 |
|||||
Proceeds from long-term loans |
685,067 |
41,001 |
|||||
Repayment of short-term loans |
(457,729) |
(1,211,475) |
|||||
Repayment of long-term loans |
(109,382) |
- |
|||||
Proceeds from (repayment of) borrowings from related parties |
(1,391,813) |
393,367 |
|||||
Proceeds from (repayment of) third party loans |
(716,574) |
76,797 |
|||||
Principal payment from (repayment of) finance lease |
254,970 |
(195,863) |
|||||
Payment for deferred initial public offering costs |
(155,557) |
(42,705) |
|||||
Net cash used in financing activities |
(947,501) |
(337,045) |
|||||
Effect of changes of foreign exchange rates on cash |
(64,052) |
15,605 |
|||||
Net increase (decrease) in cash |
987,501 |
(205,148) |
|||||
Cash, beginning of year |
53,106 |
293,771 |
|||||
Cash, end of year |
$ |
1,040,607 |
$ |
88,623 |
|||
Supplemental disclosure of cash flow information |
|||||||
Cash paid for interest expense |
$ |
215,268 |
$ |
172,913 |
|||
Cash paid for income tax |
$ |
1,424 |
$ |
- |
|||
Supplemental disclosure of non-cash investing and financing activities |
|||||||
Amortization of share-based compensation for initial public offering |
$ |
316,668 |
$ |
- |
|||
Right-of-use assets obtained in exchange for operating lease |
255,811 |
- |