Bon Announces Breakthrough Order for $16 Million Gut-Health Products

Rhea-AI Summary

Bon Natural Life (Nasdaq: BON) has secured a significant $16 million non-exclusive distribution agreement with Beijing Huahai Keyuan Technology for its natural prebiotic product series in China. The 24-month agreement focuses on marketing and distributing BON's advanced gut health products featuring a "Prebiotic + Postbiotic" complex with super prebiotic stachyose as the flagship ingredient.

The partnership leverages Huahai Keyuan's strong market presence and commercialization expertise in China's wellness sector. BON's innovative formulation aims to provide rapid and sustained support for gut microbiota, potentially redefining the gut health market while driving growth and shareholder value.

Positive

• Secured $16 million distribution agreement for gut health products
• 24-month partnership with established Chinese wellness company
• Entry into China's rapidly growing gut health market
• Innovative product featuring advanced Prebiotic + Postbiotic complex

Negative

• Non-exclusive distribution agreement limits market protection
• Revenue generation dependent on partner's sales performance

Insights

Financial Analyst

Bon secures $16M gut-health distribution deal in China, potentially boosting revenue significantly over next 24 months.

This $16 million distribution agreement represents a notable commercial breakthrough for BON, potentially delivering substantial revenue over the next 24 months. The non-exclusive nature of the deal preserves BON's ability to pursue additional distribution partnerships, maximizing market penetration potential.

Looking at the structure, this agreement creates a clear commercialization pathway for BON's prebiotic products in the massive Chinese health supplements market, which has been experiencing double-digit growth rates. The partnership leverages Huahai Keyuan's established distribution network and marketing expertise, potentially reducing BON's go-to-market costs while accelerating market entry.

What's particularly significant is how this deal aligns with BON's specialized focus on natural bio-ingredients and prebiotic formulations. The company's emphasis on their "Prebiotic + Postbiotic" complex suggests they've developed differentiated intellectual property in the rapidly expanding gut health sector, which has seen growing scientific validation and consumer adoption.

While the press release doesn't specify exact revenue recognition timing or margin structure, the $16 million contract value over 24 months could represent meaningful top-line growth for a company of BON's size. Management's repeated emphasis on "substantial growth opportunities" and "strong commercial outcomes" signals confidence in the partnership's potential to drive material financial performance improvements.

XI'AN, China, July 2, 2025 /PRNewswire/ -- Bon Natural Life Limited (Nasdaq: BON) ("BON" or the "Company"), a leading bio-ingredient solutions provider in the natural, health, and personal care industries, today announced a non-exclusive sales distribution agreement with Beijing Huahai Keyuan Technology Co., Ltd., a leading wellness company in China ("Huahai Keyuan"). The term of the agreement is 24 months with a total contract value of up to US$16 million. Pursuant to the agreement, Huahai Keyuan will market, sell and distribute BON's natural prebiotic series products in Chinese market.

BON believes their latest natural prebiotic product series marks a significant step forward in gut health, featuring a cutting-edge "Prebiotic + Postbiotic" complex centered on its flagship active ingredient: super prebiotic stachyose. This advanced formulation intends to deliver rapid, robust, and sustained support for gut microbiota, promoting a multi-fold increase in beneficial probiotic populations within a short period while maintaining excellent stability.

With its efficacy and market potential, this solution is poised to help redefine the future of gut health.

Yongwei Hu , Chairman and CEO of BON, stated "As a global leader in 'prebiotic + postbiotic' health solutions, we are thrilled to launch a premium gut health product with robust and sustained bioactive properties, and to establish a distribution partnership with Huahai Keyuan—an organization well-regarded for its strong market presence and commercialization expertise." Mr. Hu added "Huahai Keyuan brings deep experience in introducing innovative health products to the Chinese market, with a proven track record in market expansion and brand development."

Mr. Hu further stated, "At BON, we believe this strategic collaboration will accelerate our entry into China's rapidly growing gut health market and unlock substantial growth opportunities for both parties."

Additionally, Mr. Hu also stated: "This partnership with Huahai Keyuan marks a transformative step in scaling our integrated gut health solutions. We anticipate strong commercial outcomes that will drive both top-line growth and long-term shareholder value."

About Bon Natural Life Limited ("BON")

BON is a Cayman Islands company engaged in the business of natural, health, and personal care industries. For more information, please visit the Company's website at http://www.bnlus.com.

For more information, please contact:

Cindy Liu | IR
Email: bonnatural@appchem.cn

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes,""expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

View original content:https://www.prnewswire.com/news-releases/bon-announces-breakthrough-order-for-16-million-gut-health-products-302496652.html

SOURCE Bon Natural Life Limited

FAQ

What is the value of BON's new distribution agreement with Huahai Keyuan?

The agreement has a total contract value of up to US$16 million over a 24-month term.

What products will Huahai Keyuan distribute for BON?

Huahai Keyuan will distribute BON's natural prebiotic series products featuring a Prebiotic + Postbiotic complex with super prebiotic stachyose in the Chinese market.

How long is BON's distribution agreement with Huahai Keyuan?

The distribution agreement has a term of 24 months.

What is unique about BON's new gut health product?

BON's product features an advanced 'Prebiotic + Postbiotic' complex with super prebiotic stachyose, designed to provide rapid and sustained support for gut microbiota.

Who is Huahai Keyuan and why did BON choose them as a distributor?

Beijing Huahai Keyuan Technology is a leading wellness company in China with strong market presence, commercialization expertise, and a proven track record in market expansion and brand development.