Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 0

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 3
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ITEM 3. KEY INFORMATION

Our Holding Company Structure and Contractual
Arrangements with the Consolidated VIE and Its Individual Shareholders in China

We are a Cayman Islands holding company without
material operations and our business is conducted by our variable interest entity (“ VIE”) in China and this structure involves
unique risks to investors. We are not a Chinese operating company and that our business in China is conducted through contractual arrangements
with the VIE. However, the VIE agreements have not been truly tested in the courts in China. Chinese regulatory authorities could disallow
this structure, which would likely result in a material change in our operations and/or a material change in the value of our securities,
including that it could cause the value of such securities to significantly decline or become worthless. See “ Item 3. Key Information - D.
Risk Factors - “ If the PRC government deems that the contractual arrangements in relation to the consolidated variable interest
entities do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the
interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests
in those operations.”and “ Uncertainties and quick change in the interpretation and enforcement of Chinese laws and
regulations with little advance notice could result in a material and negative impact on our business operations, decrease the value of
our securities and limit the legal protections available to you and us.”

There are legal and operational risks associated
with being based in and having our operations in China. Recently, the PRC government initiated a series of regulatory actions and statements
to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market,
enhancing supervision over China-based companies listed overseas using variable interest entity structure, adopting new measures to extend
the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. On July 6, 2021, the General Office of the
Communist Party of China Central Committee and the General Office of the State Council jointly issued an announcement to crack down on
illegal activities in the securities market and promote the high-quality development of the capital market, which, among other things,
requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance
supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the
PRC securities laws.