Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 11

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 11
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 prior consent of Shanghai Jowell. Also, pursuant to
the equity interest pledge agreement between the shareholders of Shanghai Juhao and Shanghai Jowell, such shareholders pledged all of
their equity interests in Shanghai Juhao to Shanghai Jowell, to guarantee Shanghai Juhao’s performance of its obligations under
the Exclusive Business Cooperation and Management Agreement. Without Shanghai Jowell’s prior written consent, the shareholders of
Shanghai Juhao shall not transfer or assign the pledged equity interests, or incur or allow any encumbrance that would jeopardize Shanghai
Jowell’s interests. If Shanghai Juhao breaches its contractual obligations under the aforesaid agreement, Shanghai Jowell, as the
pledgee, will be entitled to certain rights and entitlements, including priority in receiving payments by the evaluation or proceeds from
the auction or sale of all or part of the pledged equity interests of Shanghai Juhao, in accordance with legal procedures. In essence,
Shanghai Jowell has been able to consolidate the financials of Shanghai Juhao. Therefore, Shanghai Juhao is considered a VIE under the
Statement of Financial Accounting Standards Board (“ FASB”) Accounting Standards Codification (“ ASC”) 810 “ Consolidation”,
because the equity investments in Shanghai Juhao no longer have the characteristics of a controlling financial interest, and the Company,
through Shanghai Jowell, is the primary beneficiary of Shanghai Juhao.

On November 6, 2020, the Company effected a reverse
stock split of its Ordinary Shares at a ratio of 1-for-3 pursuant to which all existing shareholders of record on that date surrendered
an aggregate of 42,298,849 Ordinary Shares, or 66.67% of the then outstanding Ordinary Shares to the Company for no consideration. The
shares surrendered were subsequently cancelled (“ Reverse Split”).

On December 20, 2022, Shanghai Juhao incorporated
Juhao Yuan Brand Management (Hangzhou) Co., Ltd. (“ Juhao Yuan”) with a third-party in Hangzhou City and Shanghai Juhao owns
55% and the third party owns 45% equity interest of Juhao Yuan, respectively. Shanghai Juhao sold its 55% ownership to the 45% shareholder
at $0 in August 2024 as Juhao Yuan has suffered consecutive losses since its establishment.

On April 13, 2023, Shanghai Jowell incorporated
a wholly owned subsidiary Shanghai Lianfu in Shanghai city.

On