Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 81

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 81
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 balance sheet amounts with the exception of equity as of December
31, 2023 were translated at 1.00 RMB to 0.1412 US$ as compared to 1.00 RMB to 0.1450 US$ as of December 31, 2022. The equity accounts
were stated at their historical rate. The average translation rates applied to the income statements accounts for 2023 and 2022 were 1.00
RMB to 0.1419 US$ and 1.00 RMB to 0.1489 US$, respectively. The change in the value of the RMB relative to the U. S. dollar may affect
our financial results reported in U. S dollar terms without giving effect to any underlying change in our business or results of operation.

Cash flows from operating activities

Net cash provided by operating activities in
2024 was $790 thousand. The principal items accounting for the difference between our net cash provided by operating activities and
our net loss including decrease in advance to suppliers of about $10.2 million and decrease in accounts receivable of about $0.5
million, offset by decrease in accounts payables of about $1.8 million. The decrease in accounts payables is mainly due to shrinking
credit term provided by our third-party vendors. The decrease in accounts receivables is mainly due to a decrease in sales to local
distributors and wholesalers which we provided certain credit terms based on our evaluation of their creditworthiness. The decrease
in advance to suppliers is mainly due to contraction of our operation.

Net cash used in operating activities in
2023 was $13.5 million. The principal items accounting for the difference between our net cash used in operating activities and our
net loss including a decrease in accounts payables of about $4.0 million and contract liabilities of about $15.7 million, offset by
decrease in inventories of about $5.2 million, decrease in advance to suppliers of about $8.1 million and a decrease in accounts
receivable of about $3.4 million. The decrease in accounts payables is mainly due to shrinking credit term provided by our
third-party vendors. The decrease in accounts receivables is mainly due to a decrease in sales to local distributors and wholesalers
which we provided certain credit terms based on our evaluation of their creditworthiness. The decrease in advance to suppliers and
inventories is mainly due to contraction of our operation.