— Full Year Revenue of $170.9 million, up 76.4% year-over-year —

SHANGHAI, China, April 25, 2022 (GLOBE NEWSWIRE) — Jowell Global Ltd. (“Jowell” or the “Company”) (NASDAQ: JWEL), one of the leading cosmetics, health and nutritional supplements, and household products e-commerce platforms in China, today announced its financial results for the full year ended December 31, 2021.

Full Year 2021 Financial and Operational Highlights

  • Total revenues were $170.9 million, an increase of 76.4% from $96.9 million in 2020.
  • Net loss was $6.4 million, a decrease of 278.1% compared to net income of $3.6 million in 2020.
  • Total VIP members1 as of December 31, 2021 were approximately 2.2 million, an increase of 13.6% compared to approximately 2.0 million as of December 31, 2020.
  • Total LHH stores2 as of December 31, 2021 were 26,043, an increase of 6.2% compared to 24,513 as of December 31, 2020.

Mr. Zhiwei Xu, Chief Executive Officer and Chairman of Jowell Global Ltd., commented: “We are very pleased to report our strong growth in 2021, which was a milestone year for Jowell. Our initial public offering on the Nasdaq Capital Market further enhanced our industry leadership and brand reach. Our total revenue accelerated to a new record, reaching $170.9 million. Despite the challenges brought by the pandemic and various uncertainties of macroeconomics, our performance proves that Jowell’s positioning in the new retail era is satisfying the needs of the new generation of consumers.”

Mr. Xu continued: “By continuously expanding partnerships with leading consumer brands and marketing activities, we are able to bring premium local and international products to millions of families in China. Additionally, we enhanced customer loyalty and further expanded our customer base by relentlessly optimizing both online and offline shopping experiences for our consumers. By the end of 2021, our VIP members reached 2.2 million, a new record high.

“Looking ahead to 2022, in spite of the complex and ever-evolving market environment and the lasting impacts of the pandemic, we remain confident about the market opportunities in the new retail market. Our cross-platform online and offline sales and distribution networks offer convenient shopping and delivery solutions upon customers’ various needs. Leveraging our expertise reaching consumers via diversified channels, we are able to provide efficient sales and marketing solutions for our branded partners. We will continue to optimize our platforms and product offerings to meet the increasingly diverse consumer demands.”

Ms. Mei Cai, Chief Financial Officer, added: “Jowell recorded exceptional revenue growth in 2021, a year over year increase of 76.4%, and grew LHH stores to 26,043, which demonstrated our strong execution and successful marketing strategy to cope with unprecedented challenges in retail market during the pandemic. During 2021, we made substantial marketing efforts along with Jowell’s IPO on Nasdaq. Although the effective implementation of our market strategies and increased marketing expenses resulted in a net loss in 2021, we are convinced that such investments are critical to driving our user traffic, increasing our revenues, and expanding our customer and distributor base. Going forward, we will remain committed to executing our long term growth strategy.”

Impact of COVID-19 Pandemic

Beginning in late 2019, there was an outbreak of COVID-19 (coronavirus) which spread quickly across many parts of China, the U.S. and worldwide. In March 2020, the World Health Organization declared the COVID-19 a pandemic. With an aim to contain the COVID-19 outbreak, the Chinese government imposed various measures across the country that includes, but is not limited to, travel restrictions, mandatory quarantine requirements, and postponed resumption of business operations until after the 2020 Chinese New Year holiday. Starting from March 2020, businesses in China began to reopen and interruptions to businesses were gradually removed. However, due to the recent outbreak of Omicron variant in China, many cities in China have imposed new restrictions and quarantine requirements with office closures, including Shanghai, the location of our headquarters. Employees of our VIE in Shanghai office have been working from home since March 30, 2022.

Our operations in 2021 were not significantly impacted by the pandemic as COVID-19 is considered generally under control in China in 2021 and Jowell is an online retailer and retail platform. However, it is not possible to determine the impact of the COVID-19 pandemic on our business operations and financial results for 2022, which is highly dependent on numerous factors beyond our control, such as the duration and spread of the pandemic, possible COVID-19 resurgence or new variants like Omicron, COVID-19 vaccine efficacy and distribution, and COVID-19 containment actions implemented by government authorities or other entities in China and elsewhere, like the current restrictions and office closures in Shanghai, almost all of which are beyond our control.

Full Year 2021 Financial Results

Total Revenues

Total revenues were $170.9 million, representing an increase of 76.4% from $96.9 million in 2020, primarily due to an increase in our brand reach to distribute more premium branded products, with an increase in both the units sold and average unit price. Cosmetics continued to lead the growth, with an increase of 321.6%.

(in thousand)
  Full Year Ended December 31   %
  2021   2020   change
  US$   US$   YoY
Product sales                
  78,841   18,701   321.6  
  • Health and nutritional supplements
  56,104   52,372   7.1  
  35,943   25,733   39.7  
  24   73   (67.1 )
Total   170,912   96,879   76.4  

Total operating expenses were $177.9 million, an increase of 93.9% from the $91.8 million in 2020.

  • Costs of revenues were $159.3 million, an increase of 84.3% from the $86.4 million in 2020. The increase was primarily due to the increased units sold, as well as the increased weighted average unit cost as we added more leading brands into our cosmetic brands portfolio. Cost of sales as a percentage of total revenues was 93.2%, up from 89.2% in 2020.
  • Fulfillment expenses were $3.8 million, an increase of 65.6% from the $2.3 million in 2020. The increase in our fulfillment expenses is primarily attributable to the increase in warehouse rent as we rented more spaces in 2021 to store products. The fulfillment expenses as a percentage of total revenues was 2.2 %, down from 2.3% in 2020. The decrease was mainly due to more customers elected to self-pickup products purchased from the Company’s facilities which reduced outbound freight costs.
  • Sales and marketing expenses were $9.4 million, an increase of 812.5% from the $1.0 million in 2020. The increase was primarily due to the increased marketing and promotion activities and the increased expenditure for further enhancing brand awareness in strategic geographic areas. Sales and marketing expense as percentage of total revenues was 5.5%, up from 1.1% in 2020.
  • General and administration expenses were $5.5 million, an increase of 166.8% from $2.1 million in 2020. The increase was primarily due to an increase in general and administrative personnel, share-based compensation expenses and additional expenses related to being a publicly traded company. General and administration expenses as percentage of total revenues was 3.2%, up from 2.1% in 2020.

Operating loss

Operating loss was $7.0 million, compared with the operating income of $5.1 million in 2020, which was mainly attributable to the implementation of our business expansion with significant increase in our marketing expenses and general and administration expenses and cost of revenues.

Net loss

Net loss was $6.4 million, a decrease of 278.1% compared with net income of $3.6 million in 2020.

Earnings per share

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). The Company’s each Preferred Share has voting rights equal to two Ordinary Shares of the Company and each Preferred Share is convertible into one Ordinary Share at any time. Except for voting rights and conversion rights, the Ordinary Shares and the Preferred Shares shall rank pari passu with one another and shall have the same rights, preferences, privileges and restrictions. For the full year ended December 31, 2021 and 2020, the Company had no potential ordinary shares outstanding that could potentially dilute EPS in the future.

Cash and cash equivalents

As of December 31, 2021, the Company had cash and cash equivalents and restricted cash of $21.2 million, compared to the $18.2 million as of December 31, 2020.

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 “Juhao 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 December 31, 2021 and December 31, 2020 were RMB1 for $0.1572 and $0.1531, respectively. The average exchange rates for the Full Year ended December 31, 2021 and 2020 were RMB1 for $0.1550 and $0.1450, 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:

In China:

Jowell Global Ltd.
Ms. Jessie Zhao
Email: [email protected]

The Blueshirt Group
Ms. Ally Wang
Email: [email protected]

In the United States:

The Blueshirt Group
Ms. Julia Qian
Email: [email protected]


    December 31,     December 31,  
    2021     2020  
Current Assets:                
Cash   $ 18,249,737     $ 18,244,055  
Restricted cash     2,999,990        
Accounts receivable     4,966,226       306,450  
Accounts receivable – related parties     480,111       682,315  
Advance to suppliers     5,211,542       2,125,548  
Advance to suppliers – related parties           583,387  
Inventories, net     12,316,766       7,398,248  
Deferred offering costs           420,968  
Prepaid expenses and other current assets     2,082,409       253,673  
Total current assets     46,306,781       30,014,644  
Long-term investment     4,861,824        
Property and equipment, net     524,428       12,794  
Intangible assets, net     386,510       34,933  
Right of use lease assets, net     5,284,379       3,674,255  
Other non-current asset     1,090,471       121,848  
Deferred tax assets     273,525       6,380  
Total Assets   $ 58,727,918     $ 33,864,854  
Current Liabilities:                
Short-term loan   $ 2,672,366     $  
Accounts payable     5,054,867       5,688,809  
Accounts payable – related parties     2,333,455        
Trade notes payable           580,896  
Deferred revenue     2,060,872       1,701,321  
Deferred revenue – related parties     93,170        
Current portion of operating lease liabilities     1,317,006       721,003  
Accrued expenses and other liabilities     1,341,690       1,209,105  
Due to related parties     134,381       1,240,008  
Taxes payable     43,019       1,011,775  
Total current liabilities     15,050,826       12,152,917  
Non-current portion of operating lease liabilities     3,993,641       2,967,193  
Total liabilities     19,044,467       15,120,110  
Commitments and contingencies                
Stockholders’ Equity                
Common stock, $0.0001 par value, 450,000,000 shares authorized, 25,677,965 and 21,149,425 issued and outstanding at December 31, 2021 and 2020, respectively     2,568       2,115  
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, 750,000 issued and outstanding at December 31, 2021 and 2020, respectively     75       75  
Additional paid-in capital     40,827,231       14,171,120  
Statutory reserves     394,541       394,541  
Retained earnings (Accumulated deficit)     (3,036,045 )     3,353,031  
Accumulated other comprehensive income     1,495,081       823,862  
Total Stockholders’ Equity     39,683,451       18,744,744  
Total Liabilities and Stockholders’ Equity   $ 58,727,918     $ 33,864,854  


    For the Years Ended December 31,    
    2021     2020    
Net Revenues                  
Revenues – third party   $ 169,390,433     $ 95,356,627    
Revenues – related party     1,521,566       1,522,546    
Total Net Revenues     170,911,999       96,879,173    
Operating Expenses:                  
Cost of revenues     (159,259,496 )     (86,404,697 )  
Fulfillment expenses     (3,757,991 )     (2,269,768 )  
Marketing expenses     (9,380,401 )     (1,027,895 )  
General and administrative expenses     (5,506,614 )     (2,063,997 )  
Total operating expenses     (177,904,502 )     (91,766,357 )  
Income (Loss) From Operations     (6,992,503 )     5,112,816    
Other Income (Expenses), net                  
Interest expense     (92,257 )        
Investment income     301,778          
Government subsidy income     318,783          
Other income (expense), net     (115,393 )     6,106    
Other Income, net     412,911       6,106    
Income (Loss) Before Income Taxes     (6,579,592 )     5,118,922    
Provision (Benefit) for Income Taxes     (190,516 )     1,532,230    
Net Income (loss)   $ (6,389,076 )   $ 3,586,692    
Earnings Per share – Basic and Diluted   $ (0.26 )   $ 0.18    
Weighted Average Shares Outstanding – Basic and diluted     24,562,248       20,222,976    
Net Income (loss)   $ (6,389,076 )   $ 3,586,692    
Other Comprehensive income, net of tax                  
Foreign currency translation gain     671,219       783,406    
Comprehensive Income (Loss)   $ (5,717,857 )   $ 4,370,098    


    For the Years Ended December 31,    
    2021     2020    
Cash flows from operating activities:              
Net income (loss)   $ (6,389,076 )   $ 3,586,692    
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization     185,484       25,926    
Income from long-term investment     (143,849 )        
Allowance for doubtful accounts     451,127          
Amortization of operating lease right-of-use assets     880,551       156,543    
Inventory reserve     329,639       24,172    
Deferred income taxes     (263,249 )     (6,044 )  
Share-based compensation     971,200          
Changes in operating assets and liabilities:                  
Accounts receivables                
Accounts receivables     (4,688,990 )     (289,767 )  
Accounts receivable – related Parties     217,500       (646,285 )  
Inventories     (4,983,104 )     (4,518,720 )  
Advance to suppliers     (3,335,276 )     (1,861,778 )  
Advance to suppliers – related parties     590,738       7,583,425    
Prepaid expenses and other current assets     (1,375,344 )     218,550    
Accounts payables     (776,146 )     2,445,100    
Accounts payables – related parties     2,234,057          
Trade notes payable     (588,215 )     550,221    
Deferred revenue     401,233       (396,109 )  
Operating lease liabilities     (868,766 )     (143,339 )  
Taxes payable     (982,105 )     830,726    
Accrued expenses and other liabilities     98,632       (669,939 )  
Net cash provided by (used in) operating activities     (18,033,959 )     6,889,374    
Cash flows from investing activities:                  
Long-term investment     (4,650,150 )        
Advance for purchase of fixed assets     (951,874 )     (115,414 )  
Purchase of intangible assets     (426,370 )        
Purchase of equipment     (609,014 )     (1,332 )  
Net cash used in investing activities     (6,637,408 )     (116,746 )  
Cash flows from financing activities:                  
Issuance of Ordinary Shares           10,000,000    
Deferred offering costs           (379,961 )  
Net proceeds from the Initial Public Offering     25,685,364          
Proceeds from short-term loans     2,635,085          
Capital injection              
Dividend paid              
Repayment of related party loans     (1,108,311 )     1,174,546    
Net cash provided by financing activities     27,212,138       10,794,585    
Effect of exchange rate changes on cash and restricted cash     464,900       665,331    
Net increase in cash and restricted cash     3,005,672       18,232,544    
Cash and restricted cash, beginning of year     18,244,055       11,511    
Cash and restricted cash, end of year   $ 21,249,727     $ 18,244,055    
Supplemental disclosure information:                  
Cash paid for income tax   $ 988,445     $ 839,325    
Cash paid for interest   $ 92,257     $    
Supplemental non-cash activities:                  
Cash paid in prior year for purchase of fixed assets   $ 123,384     $    
Right of use assets obtained in exchange for operating lease obligations   $ 2,370,655     $ 3,480,231    

“Total VIP members refers to the total number of members registered on Jowell’s platform as of December 31, 2021.
2 LHH stores: the brand name of “Love Home Store”. Authorized retailers may operate as independent stores or store-in-shop (an integrated store), selling products they purchased through Jowell’s online platform LHH Mall under their retailer accounts which provides them with major discounts.


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