Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 63

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 63
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OA”); 4) Powers of Attorney (“ POA”) and 5) Spousal Consent Letters. Through these agreements, Shanghai Jowell
has established the exclusive rights to receive the profits and obligation to absorb losses from Shanghai Juhao. The agreements remain
in effect unless all parties agree to its termination, except the EOA which has an effective term of 10 years and can be renewed for an
additional 10 years upon the end of the initial term. Until such termination, Shanghai Juhao may not enter into another agreement for
the similar provision without obtaining consent from Shanghai Jowell. Shanghai Jowell has gained control over Shanghai Juhao and Shanghai
Juhao is considered a Variable Interest Entity (“ VIE”) under the Statement of Financial Accounting Standards Board (“ FASB”)
Accounting Standards Codification (“ ASC”) 810 “ Consolidation”.

Jowell Global and Jowell Tech are holding
companies with no material operations of their own and do not hold any material assets. We conduct our operations primarily through
the VIE in China. We established the VIE structure through aforementioned VIE agreements. These VIE agreements are subject to
restrictions under current PRC laws and regulations. In the opinion of our PRC counsel, Yiyou Tianyuan Law Firm, our current
ownership structure, the ownership structure of our PRC subsidiary and the consolidated VIE, and the contractual arrangements among
WFOE, the VIE and the shareholders of the VIE are common practices for the companies listed on stock exchange in Hong Kong or the
U. S. engaging in the businesses on Negative List in China and these contractual arrangements are valid and binding in accordance
with their terms and applicable PRC laws and regulations currently in effect. However, Yiyou Tianyuan Law Firm has also advised us
that there are substantial uncertainties regarding the interpretation and application of current or future PRC laws and regulations
and there can be no assurance that the PRC government will ultimately take a view that is consistent with the opinion of our PRC
counsel. If the PRC government finds that our contractual arrangements do not comply with its restrictions on foreign investment in
the online data processing and transaction processing services business, the relevant PRC regulatory authorities, including the
China Securities Regulatory Commission (CSRC), would have broad discretion in dealing with such violations or failures, including,
without limitation: requiring us to restructure our ownership structure or operations, including terminating the contractual
arrangements with the VIE