Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 68

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 68
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by general factors affecting the online retail markets for health and nutritional supplements, household products and cosmetics in China,
including China’s overall economic growth, the increase in per capita disposable income, the growth in consumer spending and the
retail industry and the expansion of internet penetration. Unfavorable changes in any of these general factors could affect the demand
for the products we sell and could materially and adversely affect our results of operations.

While our business is influenced by general factors
affecting China’s online retail industry, our operating results are more directly affected by certain company specific factors,
including:

  our ability to attract and retain customers at reasonable cost;  

  our ability to establish and maintain relationships with suppliers, third-party merchants and other service providers;  

  our ability to invest in growth and new technologies while improving operating efficiency;  

  our ability to control marketing expenses, while promoting our brand and internet platform cost-effectively;  

  our ability to source new products to meet customer demands; and  

  our ability to establish Juhao Best Choice Stores and continue to expand offline LHH Stores and increase the interactions between our online platform and offline stores.  

  our ability to compete effectively and to execute our strategies successfully.  

Impact of COVID-19

Beginning in late 2019, there was an outbreak
of COVID-19 (coronavirus) which has spread quickly across many parts in China, the U. S. and worldwide. In March 2020, the World Health
Organization declared the COVID-19 a pandemic. With an aim to contain the COVID-19 outbreak, the Chinese government has imposed various
strictive measures across the country including, but not limited to, travel restrictions, mandatory quarantine requirements, and postponed
resumption of business operations until after the 2020 Chinese New Year holiday. Starting from March 2020, businesses in China began to
reopen and interruptions to businesses were gradually removed. However, due to the outbreak of Omicron variant in 2022 in China, many
cities in China have imposed new restrictions, quarantine and testing requirements and office closures, including Shanghai, where our
headquarters are located. Employees of the VIE in Shanghai office worked from home from March 30, 2022 to June 1, 2022. In early December
2022, Chinese government eased the strict control measure for COVID-19, which has led to surge in increased infections and caused disruption
in our business operations in December 2022 and January 2023.