Bon Natural Life Limited’s subsidiary, Xi’an App‑Chem Bio (Tech) Co., Ltd., entered into a 36‑month, non‑exclusive distribution agreement with Beijing Huahai Keyuan Technology Co., Ltd. for its second‑generation tea‑pigment digestive‑health products. The contract, valued at $26 million, was signed on September 1, 2025 and announced on November 25, 2025.
The partnership expands BON’s footprint in the digestive‑wellness and blood‑glucose‑management segments of Greater China, where tea pigments are projected to generate more than $1 billion in revenue. It follows a prior $22 million distribution agreement for weight‑loss products signed with Huahai Keyuan on July 21, 2025, underscoring a growing relationship between the two companies.
BON’s second‑generation tea pigments deliver more than double the digestive‑health activity of first‑generation formulations, achieved through a proprietary biotransformation process that employs a Eurotium cristatum strain. The company positions this technology as a key differentiator in the competitive natural‑ingredient market.
Financially, BON’s market capitalization is approximately $14.8 million, with a trailing‑12‑month EPS of $2.54 and net income of $0.17. The company has faced declining revenue and profitability, but the new distribution agreement provides a guaranteed $26 million revenue stream over three years, potentially stabilizing cash flow and supporting future R&D investment.
CEO Hu Yongwei said the partnership “marks the next phase of BON’s strategic development and positions us to drive synergistic growth across the digestive health sector.” The company also regained Nasdaq compliance in July 2025, signaling improved governance and regulatory standing.
While the deal is a positive step, BON remains cautious about broader market headwinds, including pricing pressure in the natural‑ingredient space and competition from established players. The company will monitor the partnership’s performance and continue to invest in product innovation to capture the projected $1 billion opportunity.
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