Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 153

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 153
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 may lift restrictions on fluctuations in the RMB exchange
rate and lessen intervention in the foreign exchange market.

Increases in labor costs in the PRC may adversely affect our business and results of operations.

The currently effective PRC Labor Contract Law, or the Labor Contract Law was first adopted on June 29, 2007 and later amended on December 28, 2012. The PRC Labor Contract Law
has reinforced the protection of employees who, under the Labor Contract Law, have the right, among others, to have written employment
contracts, to enter into employment contracts with no fixed term under certain circumstances, to receive overtime wages and to terminate
or alter terms in labor contracts. Furthermore, the Labor Contract Law sets forth additional restrictions and increases the costs involved
with dismissing employees. To the extent that we need to significantly reduce our workforce, the Labor Contract Law could adversely affect
our ability to do so in a timely and cost-effective manner, and our results of operations could be adversely affected. In addition, for
employees whose employment contracts include noncompetition terms, the Labor Contract Law requires us to pay monthly compensation after
such employment is terminated, which will increase our operating expenses.

We expect that our labor costs, including wages
and employee benefits, will continue to increase. Unless we are able to pass on these increased labor costs to our buyers by increasing
the prices of our products and services, our financial condition and results of operations would be materially and adversely affected.

We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information provided by our customers.

We may become subject to a variety of laws and
regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. These laws and regulations are continuously
evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting,
particularly with respect to foreign laws. In particular, there are numerous laws and regulations regarding privacy and the collection,
sharing, use, processing, disclosure, and protection of personal information and other user data. Such laws and regulations often vary
in scope, may be subject to differing interpretations, and may be inconsistent among different jurisdictions.

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We expect to obtain information about various
aspects of our operations as well as regarding our employees and third parties. We also maintain information about various aspects of