Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 6

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 3
Chunk 6
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 appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and remitted out
of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its
discretion restrict access in the future to foreign currencies for current account transactions. For our Hong Kong subsidiary and the
holding company (“ Non-PRC Entities”), there is no restrictions on foreign exchange for such entities and they are able to
transfer cash among these entities, across borders and to US investors. Also, there is no restrictions and limitations on the abilities
of Non-PRC Entities to distribute earnings from their businesses, including from subsidiaries to the parent company or from the holding
company to the U. S. investors as well as the abilities to settle amounts owed.

We are a holding company, and we rely on dividends
and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds necessary to pay
dividends and other cash distributions to our shareholders and service any debt we may incur. If any of our subsidiaries incurs debt on
their own behalf in the future, the instruments governing the debt may restrict their abilities to pay dividends or make other distributions
to us. Current PRC regulations permit our WFOE to pay dividends to the Company only out of its accumulated profits, if any, determined
in accordance with Chinese accounting standards and regulations. In addition, our WFOE, its subsidiary and VIE in China are required to
set aside at least 10% of their after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its
registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee
welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory
reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings
of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation. In addition,
the Enterprise Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends
payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC central government
and the governments of other countries