Financial Performance - Total revenues for the six months ended March 31, 2023, were $14,149,967, an increase of $461,567, or 3.4%, compared to $13,688,400 in the same period of 2022[5] - Income from operations for the same period was $2,985,234, an increase of $196,875, or 7.1%, compared to $2,788,359 in the same period of 2022[5] - Net income attributable to Bon Natural Life Limited for the six months ended March 31, 2023, was $2,119,760, a decrease from $2,548,678 in the same period of 2022[5] - Basic and diluted earnings per share were both $0.24 for the six months ended March 31, 2023, down from $0.31 and $0.30, respectively, in the same period of 2022[5] Revenue Breakdown - Revenue from health supplement (powder drinks) products increased by 37.2% to $4,583,272, driven by a 50% increase in sales volume from 130,000 cases to 195,035 cases sold[16] - Revenue from fragrance compounds decreased by 8.4% to $6,810,374, primarily due to a 10.1% decrease in average selling price and a 9.5% negative impact from foreign currency fluctuations[14] - Revenues from sales of bioactive food ingredient products decreased by 5.2% to $2,756,320 in the six months ended March 31, 2023, from $2,908,919 in the same period of 2022[18] Cost and Expenses - Total operating expenses increased by 38.8% to $1,732,114, with general and administrative expenses rising by 46.8% to $1,465,955[8] - Selling expenses increased by 62.2% to $136,164 in the six months ended March 31, 2023, from $83,970 in the same period of 2022, primarily due to a significant increase in staff payroll and shipping expenses[29] - General and administrative expenses rose by 46.8% to $1,465,955 in the six months ended March 31, 2023, from $998,943 in the same period of 2022, driven by increases in staff payroll and rent expenses[30] Profitability - Gross profit for the six months ended March 31, 2023, was $4,717,348, representing a gross margin of 33.3%, up from 29.5% in the same period of 2022[8] - Gross profit increased by 16.9% to $4,717,348 in the six months ended March 31, 2023, from $4,035,947 in the same period of 2022, with a gross margin increase from 29.5% to 33.3%[25] - Gross profit from fragrance compound products increased by 12.3% to $2,024,680, while gross profit from health supplement products rose by 21% to $1,414,558 in the same period[25][27] Cash Flow and Financing - Net cash used in operating activities during the six months ended March 31, 2023, was $2,177,992, compared to $130,577 in the same period of 2022[41] - Net cash provided by financing activities during the six months ended March 31, 2023, was $1,914,916, primarily from proceeds of $2,200,000 from the issuance of Ordinary Shares[43] - Cash on hand as of March 31, 2023, was $542,272, a decrease from $1,609,079 at the end of the same period in 2022[41] Other Financial Metrics - Research and development expenses decreased by $34,680, or approximately 21.1%, from $164,675 in the six months ended March 31, 2022, to $129,995 in the same period of 2023[31] - Interest expense, net, decreased by $99,207 or approximately 35.7% in the six months ended March 31, 2023, compared to 2022[33] - Government subsidies received totaled $11,916 in the six months ended March 31, 2023, a significant decrease of 97.8% from $542,256 in the same period of 2022[34] - The provision for income taxes was $510,007 in the six months ended March 31, 2023, a decrease of $52,660 or 9.4% from $562,737 in the same period of 2022[36] - The overall net decrease in cash was $298,589 for the six months ended March 31, 2023, compared to a decrease of $294,788 in the same period of 2022[41] Customer Metrics - The company sold products to 94 customers in the six months ended March 31, 2023, an increase of 8.0% from 87 customers in the same period of 2022[10] - The average purchase order size decreased by 4.5% from approximately $157,000 to $150,000 per customer[10] Product Pricing and Sales Volume - The average price of bioactive food ingredient products decreased by 7.5% from $52.8 to $48.83, while sales volume increased by 2.4% from 55,104 kilograms to 56,444 kilograms due to strong customer demand[18] - The sales volume of health supplement products increased by 50% from 130,000 cases to 195,035 cases in the six months ended March 31, 2023[23] - The cost of revenues for bioactive food ingredient products decreased by 19.8% to $1,478,210, attributed to a 21.7% decrease in weighted average unit cost[24] - The company experienced a 9.5% negative impact from foreign currency fluctuations due to changes in the average exchange rate from RMB to USD[18][20][25] Capital Expenditure - Capital expenditure on construction-in-progress amounted to $15,131 in the six months ended March 31, 2023, compared to $3,577,995 in the same period of 2022[42]
Bon Natural Life (BON) - 2023 Q4 - Annual Report