Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 72

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 72
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 for household products sold decreased, and we sold approximately 1.7 million, or 14.7%, less units in 2024. The
significant decrease in both weighted average unit price and units sold in 2024 is mainly attributable to the sharp decline in sales
of premium brand products with higher selling prices due to the slow economic recovery from COVID-19 in China and weak consumer
demand.

The average exchange rate for the fiscal years ended December 31, 2024
and 2023, was RMB1.00 to US$0.1404 and RMB1.00 to US$0.1419, respectively, representing a 1.1% unfavorable impact when exchange rates
were used in converting RMB to USD, which was included in the above analysis.

Operating Expenses

Operating expenses primarily consist of cost of
revenues, fulfilment expenses, marketing expenses and general and administrative expenses.

                                           For the Year Ended December 31,                                                                                 
                                           2024                                                                                                            
                                           $                                                                                                               
                                           Amount                                                                                                          
                                           (in thousands, except for percentages)                                                                          
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating Expenses:                                                                                                                                      
  Cost of Revenues                         $                                           131,719       99.1      156,738       98.0      (25,019      (16.0  
  Fulfilment                                                                             2,002        1.5        3,022        1.8       (1,020      (33.8  
  Marketing                                                                              4,635        3.5        7,771        4.9       (3,136      (40.4  
  General and Administrative Expenses                                                    2,716        2.0        3,369        2.1         (653      (19.4  
  Total Operating Expenses                 $                                           141,072      106.1      170,900      106.8      (29,828      (17.5  

Our total operating expenses decreased by about
$30.0 million or 17.5% from $170.9 million in 2023 to $141.0 million in 2024. All categories of our operating expenses decreased in 2024
compared to 2023.

Cost of revenues

Cost of revenues primarily consists of the purchase
price of merchandise that we sell directly