Bon Natural Life Limited Announces Record-Setting Full Fiscal Year 2022 Results

  • Revenue increased by 17.3% to $29.9 million.
  • Delivered full fiscal year 2022 net income of $6.2 million, or $0.74 per diluted share.

Xian, China, Feb. 10, 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 2022 annual financial results for the fiscal year ended September 30, 2022.

FY 2022 Financial Highlights

  • Total net revenues were US$29.9 million, representing a 17.3% increase from US$25.5 million for the same period in 2021.
  • Gross profit increased by 32.5% to US$9.4 million from US$7.1 million for the same period in 2021.
  • Gross margin was 31.5%, an increase by 3.6% from 27.9% for the same period in 2021.
  • Revenues and gross profit of our bioactive food ingredient products increased by 48.5% and 61.4% compared to the same period of 2021.
  • Net income increased by 35.4% to US$6.2 million in FY2022 from US$4.6 million for the same period in 2021.
  • Diluted earnings per share (“EPS”) was $0.74, compared to $0.68 for the same period in 2021.

Management Commentary

“We are pleased to conclude fiscal 2022 with solid growth in both top and bottom lines compared to fiscal year 2021 despite challenges caused by volatile global environment including high inflation, supply chain disruption, and persistent outbreak of COVID-19 pandemic in last year.” Commented Richard (Yongwei) Hu, BON’s Chairman & CEO, “I would like to recognize our team for their contribution in navigating through these conditions by market strategy adjustment, disciplined cost management as well as pricing efforts. Thanks to their relentless effort and hard work, the gross profits of fragrance compound, health supplemental powder drinks and bioactive food ingredients increased by 27.3%, 10.4% and 61.4% from the prior year. Our net income grew 35.4% to $6.2 million.”

“Looking ahead to 2023, we expect the first-phase completion of our third production site - Yumen Plant in May 2023. Once up and running, Yumen Plant will add 150% revenue growth potential on an annualized basis. In addition, the successful launch of our new vegetable based probiotic powder drink for regulation and improvement of human's overall microbiome and digestive health, as well as natural based personal care product for female hygiene health will attract more natural health-conscious consumers and further drive revenue growth for BON. Last but not the least, the reopening of China will help boost our profit by alleviate pressures from supply chain and logistics. With our new Yumen plant, our new natural based products, along with post-COVID reopening, we are confident to deliver the sustainable growth and create lasting long-term value for our shareholders.”

FY 2022 Product Categories Summary: Growth vs. Prior Year

 Revenues increase Gross Profits increase
Fragrance Compounds7.6%27.3%
Health Supplements (Powder Drinks)7.4%10.4%
Bioactive Food Ingredients48.5%61.4%

Fragrance Compounds

  • Revenue from sales of fragrance compound products increased by 7.6% to US$13.7 million from US$12.7 million for the same period in 2021. The increase was primarily attributable to 9.1% and 27.5% increases in average purchase order by customers and average selling price, partially offset by a decrease of 15.1% in sales volume due to the shortage of material supply.
  • Gross profit from fragrance compound increased by 27.3% from US$3.0 million to US$3.8 million for the same period in 2021. The increase was primarily attributable to the above referenced factors.

Health Supplements (Powder Drinks)

  • Revenue from sales of health supplement (powder drinks) products increased by 7.4% to US$7.1 million from US$6.7 million for the same period in 2021. The increase was attributable to 7.0% and 1.0% increases in average selling price and sales volume.
  • Gross profit from health supplement (powder drinks) increased by 10.4% from US$2.1 million to US$2.3 million for the same period in 2021. The increase was primarily due to the above referenced factors.

Bioactive Food Ingredients

  • Revenue from sales of bioactive food ingredient products increased by 48.5% to US$9.1 million from US$6.1 million for the same period in 2021. The increase was mainly attributable to 27.3% increase in sales volume due to strong customer demand and sales effort. The increase was also due to 17.4% increase in average selling price.
  • Gross profit of our bioactive food ingredient products increased by 61.4% to $3.4 million from $2.1 million for the same period in 2021. This increase was primarily due to the above referenced reasons.

Selling expenses increased by $80,292, or approximately 58.0%, from $138,530 to $218,822 in the same period of 2021, mainly attributable to increase of advertising expense, salaries and social benefits on attending more trade shows as well as recruiting more sales staff.

Research and development (“R&D”) expenses increased by $175,508, or approximately 70.5%, from $249,050 in fiscal year 2021 to $424,558 in fiscal year 2022. The increase was mainly due to an increase of $140,504 in outsourcing R&D activities to external consulting firms.

Government subsidies received in the form of a grant and recognized as other operating income totaled $1,306,627 and $449,972 for the fiscal years ended September 30, 2022 and 2021, respectively.

Net income increased from $4.6 million in the fiscal year ended September 30, 2021 to $6.2 million in the same period of 2022.

Net cash used in operating activities during the year ended September 30, 2022 was $0.2 million compared to $4.1 million net cash provided by operating activities in the same period of 2021. The decrease was mainly attribute to a decrease of $3,632,922 in taxes payable primarily due to income and VAT tax paid in fiscal year 2022, an increase of $1,300,942 account receivable due to increased sales in the year ended September 30, 2022, and decrease in deferred revenue of $875,295 due to changes in customer payment pattern related with COVID-19.

Basic earnings per share (“EPS”) was $0.75, compared to $0.69 for the same period in 2021.

Diluted earnings per share (“EPS”) was $0.74, compared to $0.68 for the same period in 2021.

Subsequent Events

  • On September 30, 2022, the Company announced there will be a delay to the completion of the construction work for its third production site – Yumen Plant to May 2023.
  • On January 17, 2023, the Company closed a private offering with gross proceeds of $2,200,000, mainly to fund its new Yumen Plant and working capital for the new production facility.

Investor Conference Call and Webcast

A live webcast to discuss the Company’s FY 2022 financial results will be held on February 10, 2023, beginning at 9:00 a.m. EST. The webcast and accompanying slide presentation may be accessed on the Company’s IR website at The webcast also can be accessed by using the direct link: . For those unable to listen to the live webcast, a recorded version will be available on the Company’s website after the event.


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

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 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: 
Maggie Zhang | Impact IRSophie Zhang | Impact IR
Phone: (646) 893-8916Phone: (917) 830-5219
Email: maggie.zhang@irimpact.comEmail:



  As of September 30, 
  2022  2021 
Cash $840,861  $1,903,867 
Short-term investments  -   1,703,314 
Accounts receivable, net  6,784,307   6,152,807 
Inventories, net  1,722,120   1,596,492 
Advance to suppliers, net  4,091,990   4,094,312 
Acquisition deposit  1,000,000   1,000,000 
Prepaid expenses and other current assets  277,509   98,960 
TOTAL CURRENT ASSETS  14,716,787   16,549,752 
Property, plant and equipment, net  21,624,437   19,228,642 
Intangible assets, net  366,167   411,056 
Right-of-use lease assets, net  546,690   201,007 
Deferred tax assets, net  2,768   22,342 
TOTAL ASSETS $37,256,849  $36,412,799 
Short-term loans $2,424,587  $41,381 
Current portion of long-term loans  2,135,979   448,005 
Accounts payable  214,585   380,385 
Due to related parties  72,836   245,104 
Taxes payable  1,239,708   5,052,018 
Deferred revenue  188,745   1,096,101 
Accrued expenses and other current liabilities  114,431   41,711 
Finance lease liabilities, current  26,285   161,286 
Operating lease liability, current  230,182   62,871 
TOTAL CURRENT LIABILITIES $6,647,338  $7,528,862 
Long-term loans  189,813   2,173,532 
Finance lease liabilities, noncurrent  -   28,953 
Operating lease liability, noncurrent  327,202   146,703 
TOTAL LIABILITIES  7,164,353   9,878,050 
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 8,396,226 and 8,330,000 shares issued and outstanding as of September 30, 2022 and 2021, respectively $840  $833 
Additional paid in capital  15,711,450   15,540,433 
Statutory reserve  1,804,116   1,050,721 
Retained earnings  14,676,769   9,192,676 
Accumulated other comprehensive income  (2,631,171)  222,221 
Non-controlling interest  530,492   527,865 
TOTAL SHAREHOLDERS’ EQUITY  30,092,496   26,534,749 
TOTAL LIABILITIES AND EQUITY $37,256,849  $36,412,799 



  For the Years Ended September 30, 
  2022  2021  2020 
REVENUE $29,908,561  $25,494,564  $18,219,959 
COST OF REVENUE  (20,484,996)  (18,382,637)  (13,017,646)
GROSS PROFIT  9,423,565   7,111,927   5,202,313 
Selling expenses  (218,822)  (138,530)  (161,719)
General and administrative expenses  (2,239,967)  (1,323,726)  (1,367,070)
Research and development expenses  (424,558)  (249,050)  (205,359)
Total operating expenses  (2,883,347)  (1,711,306)  (1,734,148)
INCOME FROM OPERATIONS  6,540,218   5,400,621   3,468,165 
Interest income  1,392   3,207   714 
Interest expense  (446,884)  (417,266)  (329,102)
Unrealized foreign transaction exchange gain (loss)  18,831   (45,124)  (248)
Gain on disposal of fixed assets  -   -   20,150 
Government subsidies  1,306,627   449,972   362,187 
Income from short-term investments  20,343   565   - 
Other income  68,922   38,409   132,713 
Total other income, net  969,231   29,763   186,414 
INCOME BEFORE INCOME TAX PROVISION  7,509,449   5,430,384   3,654,579 
INCOME TAX PROVISION  (1,267,025)  (820,931)  (556,262)
NET INCOME  6,242,424   4,609,453   3,098,317 
Less: net income attributable to non-controlling interest  4,936   18,650   71,644 
Total foreign currency translation adjustment  (2,855,701)  612,806   450,234 
TOTAL COMPREHENSIVE INCOME  3,386,723   5,222,259   3,548,551 
Less: comprehensive income attributable to non-controlling interest  2,627   21,133   81,737 
Basic $0.75  $0.69  $0.58 
Diluted $0.74  $0.68  $0.58 
Basic  8,360,774   6,615,833   5,210,649 
Diluted  8,396,064   6,706,235   5,210,649 



  For the Years Ended September 30, 
  2022  2021  2020 
Cash flows from operating activities            
Net income $6,242,424  $4,609,453  $3,098,317 
Adjustments to reconcile net income to cash provided (used in) by operating activities            
Allowance for doubtful accounts  116   2,948   22,137 
Depreciation and amortization  218,526   228,547   230,597 
Inventory reserve (recovery) reverse  (138,354)  (312,532)  29,539 
Deferred income tax  19,012   29,109   (7,751)
Amortization of operating lease right-of-use assets  150,978   58,147   - 
Amortization of stock-based compensation  170,883   44,910   - 
Unrealized foreign currency exchange loss (gain)  (18,831)  45,124   248 
Gain on disposal of property and equipment  (725)  -   (20,150)
Changes in operating assets and liabilities:            
Accounts receivable  (1,300,942)  (89,543)  (284,546)
Inventories  (157,709)  (209,011)  1,636,321 
Advance to suppliers, net  (407,022)  (399,262)  (3,021,739)
Prepaid expenses and other current assets  (265,446)  2,642   72,116 
Accounts payable  (141,927)  (969,414)  (1,982,205)
Operating lease liabilities  (147,812)  (49,648)  - 
Taxes payable  (3,632,922)  410,716   2,662,542 
Deferred revenue  (875,295)  684,030   161,045 
Accrued expenses and other current liabilities  97,925   (33,092)  46,605 
Net cash (used in) provided by operating activities  (187,121)  4,053,124   2,643,076 
Cash flows from investing activities            
Purchase of short-term investments  (5,097,816)  (2,159,920)  - 
Proceeds upon redemption of short-term investments  6,776,385   470,082   - 
Purchase of property and equipment  (27,695)  (51,878)  (31,885)
Proceeds from sales of property and equipment  1,613   -   - 
Capital expenditures on construction-in-progress  (4,708,138)  (4,432,941)  (4,301,103)
Purchase of intangible assets  -   (269,088)  - 
(Payment) refund of acquisition deposit  -   (1,000,000)  1,329,945 
Net cash used in investing activities  (3,055,651)  (7,443,745)  (3,003,043)
Cash flows from financing activities            
Net proceeds from issuance of Ordinary Shares in initial public offerings  -   11,271,480   - 
Proceeds from exercise of stock options  140         
Proceeds from short-term loans  2,631,890   1,257,225   2,033,570 
Proceeds from long-term loans  578,343   1,245,871   319,342 
Repayment of short-term loans  (40,780)  (2,563,433)  (2,872,778)
Repayment of long-term loans  (637,147)  (2,522,101)  - 
(Repayment of) proceeds from borrowings from related parties  (96,969)  (2,262,378)  1,067,808 
(Repayment of) proceeds from third party loans  -   (721,484)  238,133 
(Repayment of) principal from finance lease  (173,961)  169,153   (392,030)
Payment for deferred initial public offering costs  -   (521,651)  (281,553)
Net cash provided by financing activities  2,261,516   5,352,682   112,492 
Effect of changes of foreign exchange rates on cash  (81,750)  (111,300)  6,810 
Net (decrease) increase in cash  (1,063,006)  1,850,761   (240,665)
Cash, beginning of year  1,903,867   53,106   293,771 
Cash, end of year $840,861  $1,903,867  $53,106 
Supplemental disclosure of cash flow information            
Cash paid for interest expense $446,884  $417,266  $276,671 
Cash paid for income tax $2,290,393  $2,411  $- 
Supplemental disclosure of non-cash investing and financing activities            
Amortization of share-based compensation for initial public offering services $-  $422,221  $211,112 
Right-of-use assets obtained in exchange for operating lease obligations $546,323  $257,564  $-