Bon Natural Life secures $12M supply deal with Shanghai Yunsheng

Published 11/04/2025, 12:06
Bon Natural Life secures $12M supply deal with Shanghai Yunsheng

XI'AN, China - Bon Natural Life Limited (NASDAQ:BON), a key player in the bio-ingredient industry currently trading at significant discount to its InvestingPro Fair Value, has entered into a significant supply agreement with Shanghai Yunsheng, a top distributor of functional ingredients in China. The 24-month contract, valued at $12 million, is set to co-develop innovative health solutions featuring apple polyphenols, utilizing BON's proprietary extraction technology. The company maintains a healthy current ratio of 2.42, indicating strong short-term liquidity position.

The collaboration aims to create new formulations that combine the benefits of apple polyphenols, known for their antioxidant properties, with plant-based proteins to support weight management and metabolic health. These products are designed to cater to the growing market for wellness supplements, which have become integral to various health and fitness routines. With revenue of $23.84 million in the last twelve months and analysts forecasting significant sales growth, BON appears positioned to capitalize on market opportunities.

According to Yongwei Hu, Chairman and CEO of BON, the new apple polyphenol-infused products have the potential to meet consumer demand for nutraceuticals that offer clinically validated health benefits. The company's strategic approach aims to capitalize on the increasing consumer willingness to invest in high-quality health products. InvestingPro analysis reveals 18 additional key insights about BON's financial health and market position, essential for understanding the company's growth trajectory.

With a strong market presence and a vertically integrated supply chain, Bon Natural Life Limited is well-positioned to dominate this niche segment. The company expects to see compounding revenue streams from the dual applications of the ingredient, both as a standalone nutraceutical and as a functional food additive, while ensuring disciplined margin control to maximize returns for shareholders.

This partnership reflects a broader industry trend where consumers are seeking out scientifically supported health products. Comparable products containing apple polyphenols have already seen significant success, with sales reaching over half a million units per month and generating substantial recurring revenue.

The information in this article is based on a press release statement from Bon Natural Life Limited. The company's forward-looking statements are subject to various risks and uncertainties, and actual results may differ from those projected. With a gross profit margin of 29.82% and positive earnings expectations, investors seeking detailed analysis can access comprehensive metrics and real-time updates through InvestingPro. Interested parties should refer to the company's filings with the Securities and Exchange Commission for a more comprehensive understanding of potential risks.

In other recent news, Bon Natural Life Limited has made notable advancements in tea pigment bio-manufacturing technology, achieving a yield rate of 12-16% with purity levels above 95% from October 2024 to January 2025. These developments come as the global tea pigment industry is projected to exceed $12 billion by the end of 2025. Bon Natural Life's CEO, Yongwei Hu, has expressed plans to develop innovative products in gastrointestinal and metabolic health, aiming to establish strategic partnerships to further market these solutions. Additionally, the company has announced a $12 million securities offering, with units priced at $1.44 each, including Class A ordinary shares or pre-funded warrants, and Series A and Series B Warrants. The proceeds from this offering are intended to expand the company's sales network, enhance research and development, and increase production capacity. Univest Securities, LLC is acting as the sole placement agent for this offering, which is expected to close around March 18, 2025. The offering is being conducted under a registration statement filed with the SEC, with a final prospectus available on the SEC's website. These recent developments highlight Bon Natural Life's strategic efforts in expanding its market presence and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.