Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 54

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 54
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 who had contributed
legitimate onshore or offshore interests or assets to SPVs but had not obtained registration as required before the implementation of
SAFE Circular 37 must register their ownership interests or control in the SPVs with qualified banks. An amendment to the registration
is required if there is a material change with respect to the SPV registered, such as any change of basic information (including change
of the PRC residents, name and operation term), increases or decreases in investment amount, transfers or exchanges of shares, and mergers
or divisions. Failure to comply with the registration procedures set forth in SAFE Circular 37 and the subsequent notice, or making misrepresentations
about or failure to disclose controllers of the foreign-invested enterprise that is established through round-trip investment, may result
in restrictions being imposed on the foreign exchange activities of the relevant foreign-invested enterprise, including payment of dividends
and other distributions, such as proceeds from any reduction in capital, share transfer or liquidation, to its offshore parent or affiliate,
and the capital inflow from the offshore parent, and may also subject relevant PRC residents or entities to penalties under PRC foreign
exchange administration regulations.

The major shareholders of the Company have completed
the initial registrations with the local SAFE branch or qualified banks as required by SAFE Circular 37. To our knowledge, certain of
our minority shareholders of the Company who are also PRC resident individual shareholders have not completed their SAFE Circular 37 registration
yet. Failure to comply with the registration procedures set forth in the Circular 37 may result in restrictions being imposed on the foreign
exchange activities of the relevant onshore company, including the payment of dividends and other distributions to its offshore parent
or affiliate, the capital inflow from the offshore entities and settlement of foreign exchange capital, and may also subject relevant
onshore company or PRC residents to penalties under PRC foreign exchange administration regulations.

Regulations on Stock Incentive Plans

SAFE promulgated the Stock Option Rules in February 2012,
replacing the previous rules issued by SAFE in March 2007. Under the Stock Option Rules and other relevant rules and regulations,
PRC residents who participate in stock incentive plans in an overseas publicly-listed company are required to register with SAFE or its
local branches and complete certain other procedures. Participants of a stock incentive plan who are PRC residents must retain a qualified
PRC agent, which could be a PRC subsidiary of the overseas publicly listed company or another qualified institution selected by the P