Based on the latest business plan of the Company, Shanghai Juhao has reduced its promotion efforts and marketing expenditures since the second half of 2023, which reduced the cash used in operating activities. Management believes that the above-mentioned factors, including cash on hand of approximately $0.8 million, will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least the next twelve months.
About Jowell Global Ltd.
Jowell Global Ltd. (the "Company") is one of the leading cosmetics, health and nutritional supplements and household products e-commerce platforms in China. We offer our own brand products to customers and also sell and distribute health and nutritional supplements, cosmetic products and certain household products from other companies on our platform. In addition, we allow third parties to open their own stores on our platform for a service fee based upon sale revenues generated from their online stores and we provide them with our unique and valuable information about market needs, enabling them to better manage their sales effort, as well as an effective platform to promote their brands. The Company also sells its products through authorized retail stores all across China, which operate under the brand names of "Love Home Store" or "LHH Store" and "Best Choice Store". For more information, please visit http://ir.1juhao.com/.
Exchange Rate
The Company's financial information is presented in U.S. dollars ("USD"). The functional currency of the Company is the Chinese Yuan, Renminbi ("RMB"), the currency of the PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by the People's Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, "Foreign Currency Matters".
This press release contains translations of certain RMB amounts into U.S. dollars ("USD" or "$") at specified rates solely for the convenience of the reader. The exchange rates in effect as of June 30, 2024 and December 31, 2023 were RMB1 for $0.1403 and $0.1412, respectively. The average exchange rates for the six months ended June 30, 2024 and 2023 were RMB1 for $0.1407 and $0.1444, respectively.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact:
Jowell Global Ltd.
Ms. Jessie Zhao
Email: IR@1juhao.com
Jowell Global Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2024 2023
------------- -------------
(Unaudited)
ASSETS
Current Assets:
Cash $ 805,344 $ 1,250,281
Accounts receivable, net 2,344,481 2,401,056
Accounts receivable - related
parties - 47,040
Advance to suppliers 10,050,688 3,506,432
Advance to suppliers - related
parties 12,493,792 9,874,545
Inventories 4,508,515 8,198,402
Prepaid expenses and other current
assets 1,075,591 1,384,758
------------ ------------
Total current assets 31,278,411 26,662,514
Long-term investment 3,709,340 3,888,377
Property and equipment, net 845,579 681,942
Intangible assets, net 532,810 634,655
Right of use lease assets, net 1,506,729 2,019,300
Other non-current asset 638,723 895,775
Deferred tax assets 512,175 515,364
------------ ------------
Total Assets $ 39,023,767 $ 35,297,927
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Short-term loan $ 210,473 $ 423,567
Accounts payable 2,791,515 3,765,230
Accounts payable - related parties 280,530 194,818
Deferred revenue 11,691,812 2,309,957
Deferred revenue - related parties 40,000 47,059
Current portion of operating lease
liabilities 1,475,947 942,989
Accrued expenses and other
liabilities 975,072 782,048
Due to related parties 414,585 528,472
Taxes payable 1,487 58,233
------------ ------------
Total current liabilities 17,881,421 9,052,373
Non-current portion of operating
lease liabilities - 1,032,235
------------ ------------
Total liabilities 17,881,421 10,084,608
------------ ------------
Commitments and contingencies
Equity
Common stock, $0.0016 par value,
450,000,000 shares authorized,
2,170,475 issued and outstanding
at June 30, 2024 and December 31,
2023, respectively * 3,473 3,473
Preferred stock, $0.0016 par value,
50,000,000 shares authorized,
46,875 issued and outstanding at
June 30, 2024 and December 31,
2023, respectively * 75 75
Additional paid-in capital 52,687,182 52,687,182
Statutory reserves 394,541 394,541
Accumulated deficit (29,768,863) (26,039,567)
Accumulated other comprehensive loss (2,153,720) (1,843,970)
------------ ------------
Total Jowell Global Ltd.
Stockholders' Equity 21,162,688 25,201,734
Noncontrolling interest (20,342) 11,585
------------ ------------
Total Equity 21,142,346 25,213,319
Total Liabilities and Equity $ 39,023,767 $ 35,297,927
============ ============
* On October 25, 2023, the Company consolidated its ordinary
shares at the ratio of one-for-sixteen ("Share Consolidation").
Immediately following the Share Consolidation, the Company
increased the authorized share capital to $80,000 divided into
shares of which (i) 450,000,000 shares are designated as ordinary
shares with a nominal or par value of $0.0016 per share, and (ii)
50,000,000 shares are designated as preferred shares with a
nominal or par value of $0.0016 per share. All shares and per
share data for all the periods presented have been retroactively
restated.
Jowell Global Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(Unaudited)
For the Six Months Ended
June 30,
----------------------------
2024 2023
------------- -------------
Net Revenues $ 85,684,310 $ 84,406,244
Cost and Operating Expenses:
Cost of revenues (84,831,857) (83,763,353)
Fulfillment expenses (838,764) (1,942,595)
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December 19, 2024 16:30 ET (21:30 GMT)
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