Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 82

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 82
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Net cash used in operating activities in 2022
was $12.0 million. The principal items accounting for the difference between our net cash used in operating activities and our net loss
including increase in accounts receivable of about $1.5 million, increase in inventories of about $3.1 million, increase in advance to
suppliers of about $18.0 million and offset by increase in accounts payables of about $1.6 million and contract liabilities of about $16.9
million. The increase in accounts receivables is mainly due to increase in sales to local distributors and wholesalers which we provided
certain credit terms based on our evaluation of their creditworthiness. The increase in advance to suppliers and inventories is mainly
due to our expansion of our operation and increase in sales. The increase in accounts payables is mainly due to extended credit term provided
by our third-party vendors.

Cash flows from investing activities

Net cash used in investing activities was approximately
$124 thousand, $42 thousand and $1.3 million in 2024, 2023 and 2022, respectively. Cash used in investing activities in 2024 were used
to purchase fixed assets and software. Cash used in investing activities in 2023 were used to purchase fixed assets and software and increased
investment. Cash used in investing activities in 2022 were used to purchase fixed assets and software.

Cash flows from financing activities

Net cash used in financing activities in 2024
was about $18 thousand, including about $421 thousand repayment of short-term loan, partially offset by $403 thousand from the proceeds
from related party loans.

Net cash used in financing activities in 2023
was about $1.6 million, including about $2.4 million repayment of short-term loan, partially offset by $426 thousand from the proceeds
from short-term loans and $354 thousand from the proceeds from related party loans.

Net cash provided by financing activities in 2022
was about $9.9 million, including about $9.9 million proceeds from issuance of Ordinary Shares and $56,000 from the proceeds from related
party loans.

Cash Transfer within the Company and Restrictions
on Dividends Distribution

The Company’s sales, purchases and expense
transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not
freely convertible into foreign currencies under the current law. In China, foreign exchange