[6-K] Bon Natural Life Limited Current Report (Foreign Issuer)

Rhea-AI Filing Summary

Bon Natural Life Limited (BON) – Form 6-K, July 2025

The filing reports that subsidiary Xi’an App-Chem Bio (Tech) Co., Ltd. signed a 24-month Sales Cooperation Agreement with Beijing Huahai Keyuan Technology Co., Ltd. on 10 June 2025. Huahai Keyuan receives a non-exclusive right to market, distribute and sell App-Chem’s natural prebiotic series products throughout China.

Key commercial terms

• Guaranteed sales: Huahai Keyuan commits to purchase at least US$16 million of products over the two-year term.
• Revenue recognition & cash risk: App-Chem must receive full payment in advance before dispatch, materially reducing counter-party credit exposure.
• Operational obligations: App-Chem handles R&D, production, packaging and quality control to ensure compliance with Chinese national standards. If product quality fails, App-Chem bears all associated testing and return costs.
• Termination & penalties: • Either party may terminate by mutual consent.
  • Cure period for breach: 30 working days.
  • Wrongful termination triggers liquidated damages equal to 15 % of the total contract value.
  • Partial non-performance penalty: 10 % of the unperformed portion.
• Jurisdiction: Disputes to be litigated in a court located where the Company is registered.

The agreement provides BON with a sizeable minimum revenue pipeline, enhances cash flow security via pre-payment, and expands distribution reach within China. However, the deal is non-exclusive, exposes the company to product-quality liabilities, and the guaranteed figure’s materiality to overall revenues is not disclosed.

Positive

• US$16 million minimum purchase commitment provides predictable revenue over 24 months.
• Pre-payment requirement lowers credit risk and accelerates cash conversion.
• Non-exclusive contract allows BON to sign additional distributors, expanding market reach.

Negative

• Agreement is non-exclusive, potentially limiting volume growth if distributor shifts focus.
• App-Chem bears full cost of quality failures, which could hurt margins if issues occur.
• Liquidated damages up to 15 % of total contract value create downside if BON defaults.

Insights

Financial Analyst

TL;DR – US$16 m guaranteed sales over two years supports revenue visibility and cash flow.

The commitment from Huahai Keyuan guarantees roughly US$8 m per year of product purchases. For a micro-cap nutraceutical producer like BON, this is potentially material incremental revenue and could improve utilisation of existing manufacturing capacity. Up-front payment terms mitigate receivable risk and may strengthen operating cash conversion. As the agreement is non-exclusive, BON can still cultivate additional distributors. Although BON bears costs for any quality failures, such clauses are standard in supply deals and should be manageable if quality controls are robust. Overall, the filing signals modestly positive commercial momentum and should be viewed as impactful for shareholders lacking revenue visibility.

Risk Analyst

TL;DR – Quality liability and non-exclusive status temper upside.

While the guaranteed US$16 m is encouraging, BON’s liability for non-conforming product could create margin erosion if quality issues arise. The 15 % liquidated-damage clause also exposes the company if it elects to exit the contract prematurely. The distributor’s non-exclusive rights may limit long-term bargaining power and allow Huahai Keyuan to switch volumes to competitors. Finally, the agreement’s enforcement hinges on Huahai Keyuan’s adherence to purchasing commitments; there is no explicit security beyond contractual wording. Accordingly, I view the agreement as moderately positive but not transformative, meriting a neutral impact score.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of July 2025

Commission File Number 001-40517

BON NATURAL LIFE LIMITED

(Translation of registrant’s name into English)

Room 601, Block C, Gazelle Valley, No.69, Jinye Road

High-Tech Zone, Xi’an, Shaanxi, China

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Supply Agreement

On June 10, 2025, our subsidiary Xi’an App-Chem Bio (Tech) Co., Ltd (“App-Chem”) entered into a Sales Cooperation Agreement (the “Agreement”) with Beijing Huahai Keyuan Technology Co., Ltd. (“ Huahai Keyuan”). Under the Agreement, App-Chem grants Huahai Keyuan the non-exclusive right to market, distribute and sell App-Chem’s natural prebiotic series products (collectively, the “Products”) throughout China. The term of the Agreement is twenty-four (24) months.

App-Chem will be responsible for all research and development, production, packaging and quality control such that the Products are compliant with applicable national standards.

Pursuant to the Agreement Huahai Keyuan has guaranteed aggregate sales of no less than US$16,000,000 over the term. All such sales shall be conducted in full compliance with applicable laws and regulations.

Products will be transported to such sites as designated by Huahai Keyuan. In the event that the quality of the Product fails to conform to the agreed standards, App-Chem shall bear all costs associated with testing, as well as any expenses related to the return or exchange of the Products.

App-Chem must receive full payment from Huahai Keyuan for any Products before they are dispatched.

The Agreement may be terminated at any time by the mutual consent of both parties. If either party breaches the Agreement and fails to remedy such breach within thirty (30) working days after receiving written notice from the non-breaching party, the non-breaching party shall have the right to terminate the Agreement.

Either party that terminates the Agreement without justifiable reasons (as defined in the Agreement) or fails to fulfill its obligations under the Agreement shall compensate the other party with a liquidated damages equivalent to 15% of the total Agreement amount. Should partial non-performance of this Agreement occur due to a Party’s attributable default, the defaulting party shall pay the other party a penalty of 10% of the total price of the unperformed portion of the Agreement. Any lawsuits must be filed in a court located in a jurisdiction where the Company is located.

The foregoing is a summary of the material terms of the Agreement. The Agreement contains additional terms, covenants and conditions and should be reviewed in its entirety for additional information.

Exhibits

The following exhibits are included in this Form 6-K:

Exhibit No.		Description of Exhibit
10.1		Translation of Sales Cooperation Agreement with Huahai Keyuan Keyuan Technology Co., Ltd.
99.1		Press Release dated July 2, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 2, 2025	Bon Natural Life Limited
	By:	/s/ Yongwei Hu
		Yongwei Hu
		Chairman and Chief Executive Officer

FAQ

What is the value of the new BON supply agreement?

Huahai Keyuan must purchase at least US$16 million of natural prebiotic products over 24 months.

How long does the Bon Natural Life–Huahai Keyuan contract last?

The Sales Cooperation Agreement runs for two years from 10 June 2025.

Does BON receive payment upfront under the agreement?

Yes. Full payment is required before product dispatch, reducing BON’s credit exposure.

Can the Bon Natural Life agreement be cancelled early?

Either party may terminate by mutual consent, or after a 30-day cure period for breach.

What penalties apply if BON defaults on the contract?

Wrongful termination triggers 15 % of the total contract value; partial non-performance carries a 10 % penalty.

Which party is responsible for product quality issues?

App-Chem (BON subsidiary) bears all testing and return costs if products fail to meet agreed standards.

Where will disputes under the agreement be resolved?

Any lawsuit must be filed in a court located in a jurisdiction where Bon Natural Life is situated.