Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 85

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 85
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 and Qualitative Disclosures about
Market Risks

Liquidity risk

We are exposed to liquidity risk, which is the
risk that we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity
risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to other
financial institutions to obtain short-term funding to meet the liquidity shortage.

Inflation risk

Inflationary factors, such as increases in personnel
and overhead costs, could impair our operating results. Although we do not believe that inflation has had a material impact on our financial
position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain
current levels of gross margin and operating expenses as a percentage of sales revenue if the revenues from our products do not increase
with such increased costs.

Interest rate risk

Our exposure to interest rate risk primarily relates
to the interest rate that our deposited cash can earn, on the other hand, interest-earning instruments carry a degree of interest rate
risk. We have not been exposed to material risks due to changes in interest rates. An increase, however, may raise the cost of any debt
we incur in the future.

Foreign currency translation and transaction

Our operating transactions and assets and liabilities
are mainly denominated in RMB. RMB is not freely convertible into foreign currencies for capital account transactions. The value of RMB
against the U. S. dollar and other currencies is affected by, among other things, changes in China’s political and economic
conditions and China’s foreign exchange policies. To date, we have not entered into any hedging transactions in an effort to reduce
our exposure to foreign currency exchange risk.

Recently Issued Accounting Pronouncements

In September 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency
and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including
total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested
possible enhancements to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the
ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions,
and (3)