Company: JWEL
Filing Date: 2025-08-26
Form Type: F-3
Source: 0001213900-25-080759
Chunk: 7

Company: Jowell Global Ltd.
Filing Date: 2025-08-26
Form: F-3
Chunk 7
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 in a VIE is deemed to be the primary beneficiary of, and must
consolidate, the VIE. Jowell Shanghai is deemed to have a controlling financial interest through a series of contractual arrangements
and be the primary beneficiary of Shanghai Juhao because it has both of the following characteristics: (1) the power to direct activities
at Shanghai Juhao that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses of,
and the right to receive benefits from, Shanghai Juhao that could potentially be significant to such entity. Pursuant to the contractual
arrangements with Shanghai Juhao, Shanghai Juhao shall pay service fees equal to all of its net profit after tax payments to Jowell Shanghai.
Such contractual arrangements are designed so that the Shanghai Juhao would operate for the benefit of Jowell Shanghai and ultimately,
the Company. VIE structure is used to provide investors with exposure to foreign investment in China-based companies where the business
of the operating companies in China might be prohibited or restricted for foreign investment now or in the future. The business operations
of the VIE include value-added telecommunication services and foreign ownership of value-added telecommunications services is subject
to restrictions under current PRC laws and regulations, which prohibit foreign investment to own more than 50% equity interest of the
value-added telecommunication companies and will prevent the holding company consolidating the financial results of such entities under
equity ownership structure. Investors of our ordinary shares will not own any equity interests in the VIE and may never hold equity interests
in our Chinese operating companies, but instead own shares of a Cayman Islands holding company. We treat the VIE as our consolidated affiliated
entities for accounting purposes under U.S. GAAP and not the entities in which we own equity interest.

Under existing PRC foreign exchange regulations,
payments of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from State Administration of Foreign Exchange or SAFE by complying with certain procedural
requirements. Therefore, our WFOE is able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to the
condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulations,
such as the overseas investment registrations by the shareholders of the Company who are PRC residents. Approval from or registration
with appropriate government authorities is, however, required where the RMB is to