Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 4

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 4
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 by the CAC if the Draft Regulations on the Network Data Security Administration are enacted as proposed, since we currently do
not have over one million users’ personal information and do not collect data that affects or may affect national security and we
do not anticipate that we will be collecting over one million users’ personal information or data that affects or may affect national
security in the foreseeable future, which we understand might otherwise subject us to the Security Administration Draft. See “Risk
Factors — Risks Related to Doing Business in China” on page 16 of the 2024 Annual Report.

On February 17, 2023, the China Securities Regulatory
Commission, or the CSRC, announced the Circular on the Administrative Arrangements for Filing of Securities Offering and Listing by Domestic
Companies, or the Circular, and released a set of new regulations which consists of the Trial Administrative Measures of Overseas Securities
Offering and Listing by Domestic Companies, or the Trial Measures, and five supporting guidelines. On the same date, the CSRC also released
the Notice on the Arrangements for the Filing Management of Overseas Listing of Domestic Companies, or the Notice. The Trial Measures
came into effect on March 31, 2023. The Trial Measures refine the regulatory system by subjecting both direct and indirect overseas offering
and listing activities to the CSRC filing-based administration. Requirements for filing entities, time points and procedures are specified.
A PRC domestic company that seeks to offer and list securities in overseas markets shall fulfill the filing procedure with the CSRC per
the requirements of the Trial Measures. Where a PRC domestic company seeks to indirectly offer and list securities in overseas markets,
the issuer shall designate a major domestic operating entity, which shall, as the domestic responsible entity, file with the CSRC. The
Trial Measures also lay out requirements for the reporting of material events. Breaches of the Trial Measures, such as offering and listing
securities overseas without fulfilling the filing procedures, shall bear legal liabilities, including a fine between RMB 1.0 million (approximately
$150,000) and RMB 10.0 million (approximately $1.5 million), and the Trial Measures increase the cost for offenders by enforcing accountability
with administrative penalties and incorporating the compliance status of relevant market participants into the Securities Market Integrity
Archives.

According to the Circular, since the date of effectiveness
of the Trial Measures on March 31, 2023, PRC domestic enterprises falling within the scope of