Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 51

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 51
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 Payment and Settlement of Foreign Currency Capital of
Foreign-Invested Enterprises (“ SAFE Circular 142”), regulating the conversion by a foreign-invested enterprise of foreign
currency-registered capital into RMB by restricting how the converted RMB may be used. SAFE Circular 142, provides that the RMB capital
converted from foreign currency registered capital of a foreign-invested enterprise may only be used for purposes within the business
scope approved by the applicable government authority and may not be used for equity investments within the PRC.

In addition, SAFE strengthened its oversight of
the flow and use of the RMB capital converted from foreign currency registered capital of foreign-invested enterprises. The use of such
RMB capital may not be changed without SAFE’s approval, and such RMB capital may not, in any case, be used to repay RMB loans if
the proceeds of such loans have not been used. Any violation of Circular 142 may result in severe penalties, including substantial fines.

In November 2012, SAFE promulgated the Circular
of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment, which substantially amends and
simplifies the current foreign exchange procedure. Pursuant to this circular, the opening of various special purpose foreign exchange
accounts, such as pre-establishment expense accounts, foreign exchange capital accounts and guarantee accounts, the reinvestment of RMB
proceeds derived by foreign investors in the PRC, and remittance of foreign exchange profits and dividends by a foreign-invested enterprise
to its foreign shareholders, no longer require approval or verification from SAFE, and multiple capital accounts for the same entity may
be opened in different provinces, which was not possible previously.

In addition, SAFE promulgated another circular
in May 2013, which specifies that the administration by SAFE or its local branches over direct investment by foreign investors in the
PRC must be conducted by way of registration, and banks must process foreign exchange business relating to direct investment in the PRC
based on the registration information provided by SAFE and its branches.

In July 2014, SAFE further reformed the foreign
exchange administration system in order to satisfy and facilitate the business and capital operations of Foreign-Invested Enterprises
and issued the Circular of the State Administration of Foreign Exchange on the Pilot Reform of the Administrative Approach Regarding the
Settlement of the Foreign Exchange Capitals of Foreign-Invested Enterprises in Certain Areas (“ Circular 36”), in July 2014.
This circular suspends the