Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 83

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 83
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 transactions are required by law to be transacted
only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances
in currencies other than RMB may require certain supporting documentation in order to affect the remittance. Currently, our subsidiary
in the PRC may purchase currencies to transfer cash within the Company among subsidiaries in and out of the PRC for, among other things,
payment of cash dividends to us, if any, by complying with certain procedural requirements. However, the relevant PRC governmental authorities
may limit or eliminate our ability to purchase foreign currencies in the future and therefore limit our ability to transfer cash within
the Company among subsidiaries in and out of the PRC. The limitation over cash transfer within the Company does not raise additional liquidity
risk as all of our liabilities are also denominated in RMB and we conduct our business primarily through the consolidated VIE in China.

We rely on dividends and other distributions on
equity paid by our PRC subsidiary to fund any cash and financing requirements we may have. Under PRC laws and regulations, our PRC subsidiary
may pay dividends only out of its accumulated after-tax profits as determined in accordance with PRC accounting standards and regulations.
In addition, our subsidiary in the PRC is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory
reserve until such reserve reaches 50% of its registered capital. Each of such entities in the PRC 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. Therefore, these statutory reserves, along with the registered capital of the PRC entities,
are considered as restricted. Amounts restricted that include paid in capital and statutory reserve funds, as determined pursuant to PRC
GAAP, are $45,106,851 and $45,106,851 as of December 31, 2024 and 2023, respectively.

Off-balance Sheet Commitments and Arrangements

We have not entered into any derivative
contracts that are indexed to our shares and classified