Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 7

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 3
Chunk 7
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 or regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement
between mainland China and the Hong Kong Special Administrative Region, the withholding tax rate in respect to the payment of dividends
by a PRC enterprise to a Hong Kong enterprise may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities
determine that our transactions or arrangements are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities
may adjust the favorable withholding tax in the future. Accordingly, there is no assurance that the reduced 5% withholding rate will apply
to dividends received by our Hong Kong subsidiary from our PRC subsidiaries. This withholding tax will reduce the amount of dividends
we may receive from our PRC subsidiary.

As of the date of this report, neither WFOE, its
subsidiary nor any of our subsidiary in Hong Kong has made any dividends or distributions to the Company, the Company has not made any
dividends or distribution to its investors. We intend to keep any future earnings to re-invest in and finance the expansion of our business,
and we do not anticipate that any cash dividends will be paid in the foreseeable future. Under the Cayman Islands law, a Cayman Islands
company may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend
be paid if this would result in the company being unable to pay its debts due in the ordinary course of business. We currently do not
have cash management policies and procedures in place that dictate how funds are transferred through our organization. Rather, the funds
can be transferred in accordance with the applicable laws and regulations.

As of the date of this report, no dividends or
distributions have been made between the holding company, its subsidiaries, and consolidated VIE, or to investors including the U. S. investors,
except the VIE Shanghai Juhao made a cash dividend of $1.6 million to its shareholders in July 2019.

The holding company, its subsidiaries, and VIE
do not have any plan to distribute dividend or settle amounts owed under the VIE Agreements in the foreseeable future. The cash transfer
among the holding company, its subsidiaries and VIE is typically transferred through payment for intercompany services or intercompany
borrowing between holding company, subsidiaries and VIE.

Selected Condensed Consolidated Financial Schedule of the Company
and Its Subsidiaries and VIE