Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 139

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 139
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 individuals enforcing the contracts.
There is a risk that the benefits of ownership between the Company and the VIEs may not be aligned in the future. Given the significance
and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced.

The Company’s operations
depend on the VIEs to honour their contractual agreements with the Company and the enforceability, and therefore the benefits depend on
the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs.
The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the
possibility that it will no longer be able to be the ultimate primary beneficiary and consolidate the VIE as a result of the aforementioned
risks and uncertainties is remote.

The Company’s ability
to be the ultimate primary beneficiary of the VIEs also depends on the Power of Attorney the shareholders have to vote on all matters
requiring shareholder approval in the VIEs. As noted above, the Company believes these Power of Attorney are legally enforceable but may
not be as effective as direct equity ownership.

In addition, if the Company’s corporate structure or the contractual
arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities
could, within their respective jurisdictions:

  revoke the business licenses and/or operating licenses of  

  confiscate any of the Company’s income that they deem  

  discontinue or place restrictions or onerous conditions on  

  place restrictions on the Company’s right to collect  

  shut down the Company’s servers or block the Company’s  

  require the Company to restructure the operations in such                                                                                

  impose additional conditions or requirements with which the  
  Company may not be able to comply;                           
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  taking other regulatory or enforcement actions against the   

  impose fines on the Group.  

The Company’s ability to conduct its business
may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may
not be able to consolidate the VIE in the consolidated financial statements as it may lose the ability to exert control over the VIE and
its shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions
would result in the