Company: JWEL
Filing Date: 2025-08-26
Form Type: F-3
Source: 0001213900-25-080759
Chunk: 23

Company: Jowell Global Ltd.
Filing Date: 2025-08-26
Form: F-3
Chunk 23
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. While detailed interpretation of or implementing rules under Article 177 have yet to be promulgated,
the inability for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may
further increase difficulties faced by you in protecting your interests.

Our Organizational Structure

The Company’s organizational chart as of the date of this prospectus is as follows:

<div align='center'>4</div>

Variable Interest Entity Arrangements

In establishing our business,
we have used a variable interest entity, or VIE, structure. In the PRC, investment activities by foreign investors are principally governed
by Special Administrative Measures (Negative List) for Foreign Investment Access, which was promulgated and is amended from time to time
by the PRC Ministry of Commerce, or MOFCOM, and the PRC National Development and Reform Commission, or NDRC. Our Company and the WFOE
are considered as foreign investors or foreign invested enterprises under PRC law. These contractual arrangements with the variable interest
entity and its shareholders enable us to consolidate its financial results as the VIE for accounting purposes under U.S. GAAP.

The business we conduct through
the VIE is within the category for which foreign investment is currently restricted under the Negative List or other PRC Laws. In addition,
we intend to centralize our management and operation in the PRC without being restricted to conducting certain business activities which
are important for our current or future business but are restricted or might be restricted in the future. As such, we believe the agreements
between the WFOE and the VIE are necessary and essential to our business operations. These contractual arrangements with the VIE and its
shareholders enable us consolidate its financial results under U.S. GAAP.

WFOE assumed management of
the business activities of the VIE through a series of agreements which are referred to as the VIE Agreements. The VIE Agreements are
comprised of a series of agreements, including an Exclusive Business Cooperation and Management Agreement, an Equity Interest Pledge Agreement,
an Exclusive Option Agreement, Powers of Attorney and Spousal Consent Letters. Through the VIE Agreements, WFOE has the right to advise,
consult, manage and operate the VIE for an annual consulting service fee in an amount equal to all of the VIE’s net income. The
shareholders of the VIE have pledged all of their rights, title and equity interests in the VIE as security for WFOE to collect consulting
services fees