Business Context and Reporting Period
This Form 6-K filing by Bon Natural Life Ltd (a Foreign Private Issuer) covers the month of November 2025. The report discloses a material event: a Sales Cooperation Agreement entered into on September 1, 2025, by the registrant's subsidiary, Xi'an App-Chem Bio (Tech) Co., Ltd ("App-Chem").
Key Financial Metrics and Agreement Terms
The filing does not provide standard financial statements (revenue, profit, cash flow, or debt) for the period. Instead, it details the financial terms of the new distribution agreement:
- Counterparty: Beijing Huahai Keyuan Technology Co., Ltd. ("Huahai Keyuan").
- Product Scope: Second-generation tea pigment digestive health products.
- Guaranteed Sales Volume: Aggregate sales of no less than US$26,000,000 over the term.
- Agreement Term: 36 months.
- Payment Terms: Full payment required from Huahai Keyuan prior to product dispatch.
- Liquidated Damages: 15% of the total agreement amount for unjustified termination or failure to fulfill obligations; 10% penalty for partial non-performance.
Material Changes
The primary material change is the establishment of a non-exclusive distribution channel for App-Chem's products throughout China. This agreement introduces a guaranteed revenue floor of US$26 million over three years, contingent upon the counterparty's performance.
Outlook, Risks, and Contingencies
Management Commentary: App-Chem retains responsibility for R&D, manufacturing, and quality control to ensure compliance with national standards.
Risks and Contingencies:
- Quality Liability: App-Chem bears all costs for testing, returns, or exchanges if products fail to meet agreed standards.
- Termination Rights: The agreement may be terminated by mutual consent or by either party if a breach is not remedied within 30 working days of notice.
- Legal Jurisdiction: Any lawsuits must be filed in courts located in the People's Republic of China.
Investor Verification Checklist
- Verify the financial stability and distribution capabilities of Beijing Huahai Keyuan Technology Co., Ltd.
- Confirm the specific product definitions and quality standards for "second-generation tea pigment digestive health products."
- Review the full text of the Sales Cooperation Agreement (Exhibit 10.1) for additional covenants not summarized here.
- Assess the impact of the "payment before dispatch" term on cash flow timing versus revenue recognition.