Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 53

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 53
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 of tax filing records and audited financial statements; and (ii) domestic entities shall hold income to account for
previous years’ losses before remitting profits. Moreover, pursuant to Circular 3, domestic entities shall make detailed explanations
of the sources of capital and utilization arrangements, and provide board resolutions, contracts and other proof when completing the registration
procedures in connection with an outbound investment.

Based on the foregoing, if we intend to provide
funding to our wholly foreign owned subsidiaries through capital injection at or after their establishment, we should file with the State
Administration for Market Regulation or its local counterparts, via the foreign investment comprehensive administrative system and register
such funding with local banks for foreign exchange related matters.

In October 2019, SAFE promulgated the Circular
28 to further promote facilitation of cross-border trade and investment and relaxed certain restrictions on foreign exchange settlement.

Regulations on Foreign Exchange Registration
of Overseas Investment by PRC Residents

SAFE issued SAFE Circular on Relevant Issues Relating
to Domestic Resident’s Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37,
that became effective in July 2014, replacing the previous SAFE Circular 75. SAFE Circular 37 regulates foreign exchange matters
in relation to the use of special purpose vehicles, or SPVs, by PRC residents or entities to seek offshore investment and financing or
conduct round trip investment in China. Under SAFE Circular 37, a SPV refers to an offshore entity established or controlled, directly
or indirectly, by PRC residents or entities for the purpose of seeking offshore financing or making offshore investments, using legitimate
onshore or offshore assets or interests, while “round trip investment” refers to direct investment in China by PRC residents
or entities through SPVs, namely, establishing foreign-invested enterprises to hold the ownership, control rights and management rights.
SAFE Circular 37 provides that, before making contribution into an SPV, PRC residents or entities are required to complete foreign exchange
registration with SAFE or its local branch. SAFE promulgated the Notice on Further Simplifying and Improving the Administration of the
Foreign Exchange Concerning Direct Investment in February 2015, which took effect on June 1, 2015. This notice has amended SAFE Circular
37 requiring PRC residents or entities to register with qualified banks rather than SAFE or its local branch in connection with their
establishment or control of an offshore entity established for the purpose of overseas investment or financing.

PRC residents or entities