Bon Natural Life Limited (BON) experienced an increase of 6.41% in the premarket. However, the last trading session closed at $6.86 with an incline of 15.68%.
Strategic Cooperation with Chongqing Jingfubao by BON
On 9th September 2021, BON announced that it has entered into an agreement for a strategic partnership deal with Chongqing Jingfubao Trading Co., Limited. This agreement is to provide multichannel marketing and sales solutions for BON’s proprietary human microbiome products. Furthermore, JFB is a prominent e-commerce/new retail marketing platform in China that specializes in the marketing and distribution of health and personal care items. According to the agreement, JFB will sell BON’s goods to its large distribution network of health-conscious clients via online and offline channels. In the near future, the two parties want to execute a formal collaboration agreement. BON is excited to explore the potential in the vast and fast-growing consumer market. Lastly, they will be using their patented innovations in human microbiome health and JFB’s strong marketing capacity and extensive sales network.
Record First Half-Year Revenue and Net Income
On 17th August 2021, BON reported its half-year financial results for the six months ended March 31, 2021. According to the report:
- Total net revenues came out to be US$11.7 million.
- From US$2.6 million at the same time in 2020, gross profit surged by 32.2 percent to US$3.4 million.
- Moreover, net income grew by 43.9 percent to US$2.30 million.
- During the same quarter in 2020, cash flow from operations was $2.0 million, up from $0.5 million.
Sales of health supplement (powder drinks) items grew by 338.4% to US$4.7 million in 2020, up from US$1.1 million. Sales volume increased, which accounted for the rise. For the same time in 2020, gross earnings from health supplements (powder drinks) grew by 306.0%, from US$452.3 thousand to US$1.8 million. Moreover, the rise of BON was largely attributable to an increase in sales volume as a consequence of an increase in customer count, which was somewhat offset by an increase in average unit cost.
Third Production Facility in Yumen
On 29th July 2021, BON reported Yumen City’s Material Chemical Industrial Park is marking a significant step forward in the BON’s expansion plans. The Yumen Plant will expand BON’s production capacity of aroma compounds and bioactive food additives by 200 percent. This implies a 150 percent annualized revenue growth potential once completed. Yumen Plant is currently under development, with an expected completion date of June to September 2022. Lastly, BON’s third facility will have six state-of-the-art production lines. Out of which three will be devoted to fragrance compounds and the other three to bioactive food components.
