Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 78

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 78
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9.8%, less units in 2023. The significant increase in the weighted
average unit price for products sold is mainly due to the increase in sales of premium brand products. The decline in units sold is
because the units sold were counted by the smallest unit in 2022, while they were counted by whole box in 2023.

The average exchange rate for the fiscal years
ended December 31, 2023 and 2022, was RMB1 to $0.1419and RMB 1 to $0.1489, respectively, representing a 4.7% unfavorable impact when exchange
rates were used in converting RMB to USD, which was included in the above analysis.

Operating Expenses

Operating expenses primarily consist of cost of
revenues, fulfilment expenses, marketing expenses and general and administrative expenses.

                                           For the Year Ended December 31,                                                                                 
                                           2023                                                                                                            
                                           $                                                                                                               
                                           Amount                                                                                                          
                                           (in thousands, except for percentages)                                                                          
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating Expenses:                                                                                                                                      
  Cost of Revenues                         $                                           156,738       98.0      203,738       97.0      (47,000      (23.1  
  Fulfilment                                                                             3,022        1.8        3,700        1.8         (678      (18.3  
  Marketing                                                                              7,771        4.9        8,795        4.2       (1,024      (11.6  
  General and Administrative Expenses                                                    3,369        2.1        5,789        2.8       (2,420      (41.8  
  Total Operating Expenses                 $                                           170,900      106.8      222,022      105.8      (51,122      (23.0  

Our total operating expenses decreased by about
$51.1 million or 23.0% from $222.0 million in 2022 to $170.9 million in 2023. All categories of our operating expenses decreased in 2023
compared to 2022.

Cost of revenues

Cost of revenues primarily consists of the purchase
price of merchandise that we sell directly on our platform and inbound shipping costs.

Cost of revenues of cosmetic products decreased