Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 153

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 153
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 U.S. dollar terms. For example, to the extent that we need to convert U.S. dollars we receive from
our initial public offering into RMB for our operations, appreciation of the RMB against the U.S. dollar would have an adverse effect
on RMB amount we would receive from the conversion. Conversely, if we decide to convert our RMB into U.S. dollars for the purpose of paying
dividends on our Class A ordinary shares or for other business purposes, appreciation of the U.S. dollar against the RMB would have a
negative effect on the U.S. dollar amount available to us. In addition, fluctuations of the RMB against other currencies may increase
or decrease the cost of imports and exports, and thus affect the price-competitiveness of our products against products of foreign manufacturers
or products relying on foreign inputs.

Since July 2005, the RMB is no longer pegged to
the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange market to prevent significant
short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly in value against the U.S. dollar in the
medium to long term. Moreover, it is possible that in the future PRC authorities 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