Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 165

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 165
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 GAAP until the reserve is
equal to50% of the entity’s registered capital, which is RMB14million (approx. $2million) as of December 31, 2024. Appropriations
to the surplus reserve are made at the discretion of the Board of Directors. As of December 31, 2024 and 2023, the balance of statutory
reserve were both $394,541.

Restricted net assets

The Company’s ability to pay dividends is
primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations
permit payments of dividends by the VIE only out of their retained earnings, if any, as determined in accordance with PRC accounting standards
and regulations.

As aforementioned in Note 12, Statutory Reserve,
under PRC law, the Company’s subsidiary and VIE located in the PRC (collectively referred as the “ PRC entities”) are
required to provide for certain statutory reserves. Appropriations to certain statutory reserves are made at the discretion of the Board
of Directors. However, these reserves can only be used for specific purposes and are not transferable to the Company in the form of loans,
advances or cash dividends. Therefore, these statutory reserves, along with the registered capital of the PRC entities are considered
as restricted.

The restricted net assets that include paid in
capital and statutory reserve funds amounted to $45,106,851and $45,106,851as of December 31, 2024 and 2023, respectively.

Note 13 - Related party transactions

The relationship and the nature of related party
transactions are summarized as follow:

  Name of Related Party                    Relationship to the Company                           Nature of Transactions         
  Longrich Group and its subsidiaries      Controlled by a major shareholder of the Company      Purchase and operating leases  
  Longrich America Int’l, Inc.             Controlled by a major shareholder of the Company      Sales                          
  Jowell Holdings Limited                  Controlled by a major shareholder of the Company      Operating support              
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F-24

Due to related parties:

The balance in due to related parties account
amounted to $925,100and $528,472as of December 31, 2024 and 2023, respectively. These dues to related parties, subsidiaries of Longrich
Group and Jowell Holdings Limited, are typically short-term in nature, interest-free and