Business Context and Reporting Period
Bon Natural Life Ltd, a foreign private issuer based in Xi'an, China, filed this Form 6-K on December 10, 2025, for the month of December 2025. The filing discloses a new commercial agreement entered into by its subsidiary, Xi'an App-Chem Bio (Tech) Co., Ltd.
Key Financial Metrics and Material Changes
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. The primary material event is the execution of a Sales Cooperation Agreement on December 5, 2025, with Shaanxi Qingshengyuan Health Industry Co., Ltd. ("Qingshengyuan").
- Contract Value: Qingshengyuan has guaranteed aggregate sales of no less than US$12,000,000 over the 24-month term.
- Product Scope: The agreement covers the marketing, distribution, and sale of kombucha tea pigment digestive health products in the greater China market.
- Payment Terms: App-Chem must receive full payment from Qingshengyuan prior to the dispatch of any products.
Guidance, Outlook, and Risks
Management commentary is limited to the terms of the new supply agreement. The filing outlines specific operational and legal risks associated with the contract:
- Quality Control: App-Chem retains responsibility for R&D, production, and quality control. If products fail to meet standards, App-Chem bears all testing, return, and exchange costs.
- Termination and Penalties: The agreement allows for termination if a breach is not cured within 30 working days. A unilateral breach or unauthorized termination triggers a penalty of 15% of the total contract price. Partial non-performance results in a 10% penalty on the unperformed portion.
- Legal Jurisdiction: Any lawsuits arising from the agreement must be filed in a court located in the People's Republic of China.
Investor Verification Checklist
- Verify the financial stability and distribution capabilities of Shaanxi Qingshengyuan Health Industry Co., Ltd. to ensure the US$12,000,000 sales guarantee is credible.
- Confirm the current production capacity of App-Chem to meet the volume required to fulfill the 24-month agreement.
- Review the full text of the Sales Cooperation Agreement (Exhibit 10.1) for additional covenants not summarized in the filing.
- Assess the impact of the "payment before dispatch" term on the company's working capital and cash flow timing.