Company: RAYA
Filing Date: 2025-07-28
Form Type: 424B5
Source: 0001213900-25-067907
Chunk: 96

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-07-28
Form: 424B5
Chunk 96
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transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits,
if any, determined in accordance with Chinese accounting standards and regulations. As of the date of this prospectus, there are no restrictions
or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from
Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities. Cayman Islands law prescribes
that a company may only pay dividends out of its profits or share premium, and that a company may only pay dividends if, immediately following
the date on which the dividend is paid, the company remains able to pay its debts as they fall due in the ordinary course of business.
Other than that, there is no restrictions on Erayak’s ability to pay dividends to its shareholders. See “Prospectus Summary
— Transfers of Cash to and from Our Subsidiaries,” and “Risk Factors — Risks Related to Doing Business in China
— To the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong Kong entity, the funds or assets may
not be available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions
and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash or assets,” “Risk Factors
— Risks Related to Doing Business in China — We are a holding company and we rely on our subsidiaries for funding dividend
payments, which are subject to restrictions under PRC laws,” and “Risk Factors — Risks Related to Doing Business in
China — Our PRC subsidiaries are subject to restrictions on paying dividends or making other payments to us, which may have a material
adverse effect on our ability to conduct our business.”

As a holding company, may rely on dividends to
be paid by our PRC subsidiaries to fund our cash and financing requirements, including the funds necessary to pay dividends and other
cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiaries incur
debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us. ERAYAK Power Solution Group Inc. is permitted under the Cayman Islands laws to provide funding to our subsidiary in Hong Kong through
loans or capital