Full Press Release Details
Natural Life Limited Announces Record-Setting Full Fiscal Year 2021 Results
China, February 2, 2021 - 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 2021 annual financial results
for the fiscal year ended September 30, 2021.
2021 Financial Highlights
at the end of this release contain reconciliations of reported GAAP to non-GAAP metrics. See use of non-GAAP financial measures for explanations
of our non-GAAP metrics.
are pleased by the strong demand trends we've seen in our business and proud that we achieved double-digit sales growth and record
revenue. These results speak volumes about our refined product portfolio, commitment to innovation and our position as an essential partner
to our customers." Commented Richard (Yongwei) Hu, BON's Chairman & CEO, "In the short-term, we face unprecedented
global supply-chain challenges and inflation-related increases in raw material procurement and logistics due to the protracted global
pandemic, changes in trade relations and macroeconomic policies. We are confident in our team's ability to navigate through these
conditions and fully offset pressures over time as we shift our product mix towards higher end and higher margin products to increase
our pricing power, improve gross margin, improve productivity, and continue to exert strong cost discipline. In addition, we are very
excited about the inroad we have made to end user market with the successful rollout of our all natural human microbiome product - FeatherPure
and upcoming introduction of other consumer products such as Stachyose probiotic powder to address the growing demand from natural health-conscious
consumers. Last but not least, we believe that with the commissioning of our Yumen Plant later this year with 150% increase of revenue
growth potential on an annualized basis, we will be able to better serve our customers both at home and abroad more efficiently, accelerate
our global business expansion and create lasting long-term value for our investors."
2021 Product Categories Summary: Growth vs. Prior Year
| Revenues increase (decrease) | Gross Profits increase (decrease) | |||||||
| Fragrance Compounds | 61.7 | % | 82.3 | % | ||||
| Health Supplements (Powder Drinks) | 71.2 | % | 81.8 | % | ||||
| Bioactive Food Ingredients | (5.6 | %) | (14.2 | %) |
Supplements (Powder Drinks)
expenses decreased by $23,189, or approximately 14.3%, from $161,719 to $138,530 in the same period of 2021, mainly attributable
to cost saving achieved by switching focus to target large domestic customers through online and virtual marketing and sales promotion.
and development ("R&D") expenses increased by $43,691, or approximately 21.3%, from $205,359 in fiscal year 2020
to $249,050 in fiscal year 2021. The increase was mainly due to an increase of $26,391 in material consumption and $10,647 in R&D
testing and inspection related expenses.
subsidies received in the form of a grant and recognized as other operating income totaled $449,972 and $362,187 for the fiscal years
ended September 30, 2021 and 2020, respectively.
income increased from $3.10 million in the fiscal year ended September 30, 2020 to $4.61 million in the same period of 2021.
cash provided by operating activities during the year ended September 30, 2021 was $4.05 million compared to $2.64 million in the
same period of 2020.
earnings per share ("EPS") was $0.69, compared to $0.58 for the same period in 2020.
earnings per share ("EPS") was $0.68, compared to $0.58 for the same period in 2020.
Conference Call and Webcast
live webcast to discuss the Company's FY 2021 financial results will be held on February 3, 2022, beginning at 9:00 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/.
For those unable to listen to the live webcast, a recorded version will be available on the Company's website after the event.
Bon Natural Life Limited
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.
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.
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 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
| September 30 | ||||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,903,867 | $ | 53,106 | ||||
| Short-term investments | 1,703,314 | - | ||||||
| Accounts receivable, net | 6,152,807 | 5,771,008 | ||||||
| Inventories, net | 1,596,492 | 1,016,442 | ||||||
| Advance to suppliers, net | 4,094,312 | 3,491,145 | ||||||
| Deferred initial public offering costs | - | 510,079 | ||||||
| Acquisition deposit | 1,000,000 | - | ||||||
| Prepaid expenses and other current assets | 98,960 | 7,434 | ||||||
| TOTAL CURRENT ASSETS | 16,549,752 | 10,840,214 | ||||||
| Property, plant and equipment, net | 19,228,642 | 14,171,963 | ||||||
| Intangible assets, net | 411,056 | 140,993 | ||||||
| Right-of-use lease assets, net | 201,007 | - | ||||||
| Deferred tax assets, net | 22,342 | 49,059 | ||||||
| TOTAL ASSETS | $ | 36,412,799 | $ | 25,202,229 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 41,381 | $ | 1,289,081 | ||||
| Current portion of long-term loans | 448,005 | 1,227,346 | ||||||
| Third party loans | - | 690,327 | ||||||
| Accounts payable | 380,385 | 1,288,629 | ||||||
| Due to related parties | 245,104 | 2,322,990 | ||||||
| Taxes payable | 5,052,018 | 4,402,625 | ||||||
| Deferred revenue | 1,096,101 | 385,978 | ||||||
| Accrued expenses and other current liabilities | 41,711 | 56,604 | ||||||
| Finance lease liabilities, current | 161,286 | 33,389 | ||||||
| Operating lease liability, current | 62,871 | - | ||||||
| TOTAL CURRENT LIABILITIES | $ | 7,528,862 | $ | 11,696,969 | ||||
| Long-term loans | 2,173,532 | 2,482,251 | ||||||
| Finance lease liabilities, noncurrent | 28,953 | - | ||||||
| Operating lease liability, noncurrent | 146,703 | - | ||||||
| TOTAL LIABILITIES | 9,878,050 | 14,179,220 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 8,330,000 and 5,800,000 shares issued and outstanding as of September 30, 2021 and 2020, respectively | $ | 833 | $ | 580 | ||||
| Additional paid in capital | 15,540,433 | 5,251,205 | ||||||
| Statutory reserve | 1,050,721 | 579,922 | ||||||
| Retained earnings | 9,192,676 | 5,072,672 | ||||||
| Accumulated other comprehensive income (loss) | 222,221 | (388,102 | ) | |||||
| TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS' EQUITY | 26,006,884 | 10,516,277 | ||||||
| Non-controlling interest | 527,865 | 506,732 | ||||||
| Total equity | 26,534,749 | 11,023,009 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 36,412,799 | $ | 25,202,229 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| For the Years Ended September 30, | ||||||||||||
| 2021 | 2020 | 2019 | ||||||||||
| REVENUE | $ | 25,494,564 | $ | 18,219,959 | $ | 16,396,018 | ||||||
| COST OF REVENUE | (18,382,637 | ) | (13,017,646 | ) | (11,113,922 | ) | ||||||
| GROSS PROFIT | 7,111,927 | 5,202,313 | 5,282,096 | |||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling expenses | (138,530 | ) | (161,719 | ) | (273,841 | ) | ||||||
| General and administrative expenses | (1,323,726 | ) | (1,367,070 | ) | (1,310,215 | ) | ||||||
| Research and development expenses | (249,050 | ) | (205,359 | ) | (522,867 | ) | ||||||
| Total operating expenses | (1,711,306 | ) | (1,734,148 | ) | (2,106,923 | ) | ||||||
| INCOME FROM OPERATIONS | 5,400,621 | 3,468,165 | 3,175,173 | |||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||
| Interest income | 3,207 | 714 | 2,271 | |||||||||
| Interest expense | (417,266 | ) | (329,102 | ) | (333,190 | ) | ||||||
| Unrealized foreign transaction exchange gain (loss) | (45,124 | ) | (248 | ) | 5,281 | |||||||
| Gain on disposal of fixed assets | - | 20,150 | - | |||||||||
| Government subsidies | 449,972 | 362,187 | 140,295 | |||||||||
| Income from short-term investments | 565 | - | - | |||||||||
| Other income | 38,409 | 132,713 | - | |||||||||
| Total other income (expenses), net | 29,763 | 186,414 | (185,343 | ) | ||||||||
| INCOME BEFORE INCOME TAX PROVISION | 5,430,384 | 3,654,579 | 2,989,830 | |||||||||
| INCOME TAX PROVISION | (820,931 | ) | (556,262 | ) | (427,194 | ) | ||||||
| NET INCOME | 4,609,453 | 3,098,317 | 2,562,636 | |||||||||
| Less: net income (loss) attributable to non-controlling interest | 18,650 | 71,644 | (11,167 | ) | ||||||||
| NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | 4,590,803 | $ | 3,026,673 | $ | 2,573,803 | ||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| Total foreign currency translation adjustment | 612,806 | 450,234 | (281,699 | ) | ||||||||
| TOTAL COMPREHENSIVE INCOME | 5,222,259 | 3,548,551 | 2,280,937 | |||||||||
| Less: comprehensive income (loss) attributable to non-controlling interest | 21,133 | 81,737 | (10,969 | ) | ||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | 5,201,126 | $ | 3,466,814 | $ | 2,291,906 | ||||||
| EARNINGS PER SHARE | ||||||||||||
| Basic | $ | 0.69 | $ | 0.58 | $ | 0.50 | ||||||
| Diluted | $ | 0.68 | $ | 0.58 | $ | 0.50 | ||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||||||
| Basic | 6,615,833 | 5,210,649 | 5,166,667 | |||||||||
| Diluted | 6,706,235 | 5,210,649 | 5,166,667 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
| For the Years Ended September 30, | ||||||||||||
| 2021 | 2020 | 2019 | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | $ | 4,609,453 | $ | 3,098,317 | $ | 2,562,636 | ||||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||||||
| Allowance for doubtful accounts | 2,948 | 22,137 | 34,328 | |||||||||
| Depreciation and amortization | 228,547 | 230,597 | 226,633 | |||||||||
| Inventory reserve (recovery) | (312,532 | ) | 29,539 | - | ||||||||
| Deferred income tax | 29,109 | (7,751 | ) | (5,149 | ) | |||||||
| Amortization of operating lease right-of-use assets | 58,147 | - | ||||||||||
| Amortization of stock options | 44,910 | - | - | |||||||||
| Unrealized foreign currency exchange loss (gain) | 45,124 | 248 | (5,281 | ) | ||||||||
| Gain on disposal of property and equipment | - | (20,150 | ) | - | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (89,543 | ) | (284,546 | ) | (2,912,222 | ) | ||||||
| Inventories | (209,011 | ) | 1,636,321 | 6,681,972 | ||||||||
| Advance to suppliers, net | (399,262 | ) | (3,021,739 | ) | 168,868 | |||||||
| Prepaid expenses and other current assets | 2,642 | 72,116 | 173,609 | |||||||||
| Accounts payable | (969,414 | ) | (1,982,205 | ) | (78,356 | ) | ||||||
| Operating lease liabilities | (49,648 | ) | - | - | ||||||||
| Taxes payable | 410,716 | 2,662,542 | 1,538,662 | |||||||||
| Deferred revenue | 684,030 | 161,045 | (1,223,824 | ) | ||||||||
| Accrued expenses and other current liabilities | (33,092 | ) | 46,605 | (57,053 | ) | |||||||
| Net cash provided by operating activities | 4,053,124 | 2,643,076 | 7,104,823 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of short-term investments | (2,159,920 | ) | - | - | ||||||||
| Proceeds upon redemption of short-term investments | 470,082 | - | - | |||||||||
| Purchase of property and equipment | (51,878 | ) | (31,885 | ) | (213,634 | ) | ||||||
| Capital expenditures on construction-in-progress | (4,432,941 | ) | (4,301,103 | ) | (6,861,257 | ) | ||||||
| Purchase of intangible assets | (269,088 | ) | - | - | ||||||||
| Refund (payment) of acquisition deposit | (1,000,000 | ) | 1,329,945 | (1,355,067 | ) | |||||||
| Net cash used in investing activities | (7,443,745 | ) | (3,003,043 | ) | (8,429,958 | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Net proceeds from issuance of Ordinary Shares in initial public offerings | 11,271,480 | - | - | |||||||||
| Proceeds from short-term loans | 1,257,225 | 2,033,570 | 4,008,293 | |||||||||
| Proceeds from long-term loans | 1,245,871 | 319,342 | - | |||||||||
| Repayment of short-term loans | (2,563,433 | ) | (2,872,778 | ) | (4,514,482 | ) | ||||||
| Repayment of long-term loans | (2,522,101 | ) | - | - | ||||||||
| Proceeds from (repayment of) borrowings from related parties | (2,262,378 | ) | 1,067,808 | 543,976 | ||||||||
| Proceeds from (repayment of) third party loans | (721,484 | ) | 238,133 | (101,793 | ) | |||||||
| Principal payment from (repayment of) finance lease | 169,153 | (392,030 | ) | 432,722 | ||||||||
| Capital contribution from non-controlling interest | - | - | 435,964 | |||||||||
| Payment for deferred initial public offering costs | (521,651 | ) | (281,553 | ) | - | |||||||
| Net cash provided by financing activities | 5,352,682 | 112,492 | 804,680 | |||||||||
| Effect of changes of foreign exchange rates on cash | (111,300 | ) | 6,810 | (6,630 | ) | |||||||
| Net increase (decrease) in cash | 1,850,761 | (240,665 | ) | (527,085 | ) | |||||||
| Cash, beginning of year | 53,106 | 293,771 | 820,856 | |||||||||
| Cash, end of year | $ | 1,903,867 | $ | 53,106 | $ | 293,771 | ||||||
| Supplemental disclosure of cash flow information | ||||||||||||
| Cash paid for interest expense | $ | 417,266 | $ | 276,671 | $ | 333,190 | ||||||
| Cash paid for income tax | $ | 2,411 | $ | - | $ | 115,179 | ||||||
| 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 | $ | 257,564 | $ | - | $ | - |
Natural Life Limited
to Non-GAAP Reconciliation
following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts.
This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial
statements of the Company prepared and presented in accordance with GAAP.
of Adjusted EBITDA to Net Income
| 30-Sep | ||||||||
| 2021 | 2020 | |||||||
| Net income | $ | 4,609,453 | $ | 3,098,317 | ||||
| Interest expense | 417,266 | 329,102 | ||||||
| Income taxes | 820,931 | 556,262 | ||||||
| Depreciation and amortization | 228,547 | 230,597 | ||||||
| Non-cash item(1) | 44,910 | - | ||||||
| Adjusted EBITDA | $ | 6,121,107 | $ | 4,214,278 |
Non-cash item represents adjustment of stock-based compensation to reconcile net income to net cash provided by operations as presented
on the Statement of Cash Flows