Company: JWEL
Filing Date: 2025-08-26
Form Type: F-3
Source: 0001213900-25-080759
Chunk: 18

Company: Jowell Global Ltd.
Filing Date: 2025-08-26
Form: F-3
Chunk 18
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 the expected losses of the entity.
Our WFOE has the power to direct activities at Shanghai Juhao that most significantly impact Shanghai Juhao’s economic performance,
and has the right to receive benefits from Shanghai Juhao. As such, the WFOE is the primary beneficiary of the VIE, for accounting purposes,
based upon such contractual arrangements. Accordingly, under U.S. GAAP, the financial results of the VIE are consolidated in our financial
statements. In addition, these VIE agreements have not been truly tested in the courts in China. Investors of our securities of will not
own any equity interests in the VIE, but instead own shares of a Cayman holding company. Chinese regulatory authorities could disallow
the VIE structure, which would likely result in a material change in our operations and/or value of our securities, including that it
could cause the value of our securities to significantly decline or become worthless.

The VIE structure is subject
to various risks. For example, the contractual arrangements may not be as effective as direct ownership in providing us with exerting
the right over Shanghai Juhao. We expect to rely on the performance by the VIE shareholders of their respective obligations under the
contracts to consolidate financial results of the VIE in our financial statements under U.S. GAAP. The VIE shareholders may not act in
the best interests of our company or may not perform their obligations under these contracts. Such risks will exist throughout the period
in which we operate our business in China through the contractual arrangements. If any dispute relating to these contracts remains unresolved,
we will have to enforce our rights under these contracts through the operations of PRC law and arbitration, litigation or other legal
proceedings which could be a lengthy process and very costly.

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Shanghai Juhao is incorporated and operating in mainland China and
they have received all required permissions from Chinese authorities to operate its current business in China, including Business License,
EDI (Electronic Data Interchange) Certificate, Retail License for Alcoholic Products, Food Business License and International Trade Business
Filing Form. Other than these permits, the VIE is not required to obtain permit and approval from Chinese authorities to operate our business.
We, our subsidiaries, or VIE are not covered by permissions requirements from the China Securities Regulatory Commission (CSRC), Cyberspace
Administration of China (CAC) or any other governmental agency that is required to approve the VIE’s business and operations.