Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 32

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 32
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 We face fierce competition in the health and nutritional
supplements and cosmetic markets in China. We may not be able to keep pace with competition in our industry, which could adversely affect
our market share and result in a decrease in our future sales and earnings.”

Regulations

This section sets forth a summary of the most
significant rules and regulations that affect our business activities in China.

The relevant regulations promulgated by such government
authorities are described below.

Regulations of operation and service of
e-commerce and authorized retail store

We operate under a license for
value - added telecom businesses of the People’s Republic of China (EDI), authorized by the Ministry of Industry and
Information Technology of the People’s Republic of China, or MIIT, which has approved the Shanghai Juhao platform for
operating online data processing and transaction processing services. Our license was approved on February 1, 2019, then renewed on
February 1, 2024 and is valid for 5 years. Shanghai Juhao was at its early development stage between 2012 and 2017 and it did not
apply for a value-added telecommunications business license until 2017. At its early business development stage, the Company’s
business operation was small and revenue from service fees generated by third-party stores was immaterial in the overall business
and total revenue of the Company. Our PRC counsel believes, due to the immaterial amount from valued-added telecommunication
business from 2012 until we received the approval in 2019, that it is unlikely that such operation without an appropriate license
will be considered as a material violation of the regulation by the regulator and that the possibility that the Company be penalized
is remote. In addition, Mr. Zhiwei Xu, a major shareholder of Shanghai Juhao, has provided an indemnification letter to the Company
and agreed that he will indemnify Shanghai Juhao and Company for any losses and penalties imposed by government agencies due to the
lack of a value-added telecommunication business license prior to February 1, 2019

Under the Telecommunications Regulations of the
People’s Republic of China and Administrative Measures on Internet Information Services, a telecommunications service provider
is required to procure operating licenses from the MIIT or its provincial counterparts, prior to the commencement of its operations,
otherwise such operator might be subject to sanctions including corrective orders and warnings from the competent administration authority,
fines and confiscation of illegal gains. In case of serious violations, the