Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 100

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 100
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The structure of cash flows within our organization,
and as summary of the applicable regulations, is as follows:

1. Our corporate structure is a direct holding
structure without a VIE structure, that is, the overseas entity to be listed in the U.S., ERAYAK Power Solution Group Inc., or Erayak,
wholly owns Wenzhou Wenjie Information Technology Co. Ltd., or Erayak WFOE or the WFOE, and other domestic operating entities indirectly
through holding of the BVI company, Erayak Power Solution Limited, or Erayak BVI, and Hong Kong company, Erayak Power Solution Hong Kong
Limited, or Erayak HK.

2. Within our direct holding structure, the cross-border
transfer of funds within our corporate group is legal and compliant with the laws and regulations of the PRC. After foreign investors’
funds enter Erayak at the close of this offering, the funds can be directly transferred to Erayak BVI and then Erayak HK, and then transferred
to subordinate operating entities through the WFOE.

If the Company intends to distribute dividends,
Ruike or Zhejiang Leiya will transfer the dividends to Erayak WOFE, which then will transfer the dividends to Erayak HK in accordance
with the laws and regulations of the PRC, and then Erayak HK will transfer the dividends to Erayak BVI, which will transfer the dividends
to Erayak, and the dividends will be distributed from Erayak to all shareholders respectively in proportion to the shares they hold, regardless
of whether the shareholders are U.S. investors or investors in other countries or regions.

3. In the reporting periods and as of the date
of this prospectus, except for transfers and loans made by Zhejiang Leiya and Erayak WFOE on behalf of the holding company to fulfill
certain maintenance requirements in Cayman Islands and legal expenses relating to this offering, no dividends or distributions have been
made to date between the holding company and its subsidiaries, or to investors. See “Transfers of Cash to and from Our Subsidiaries”
on page 4. Neither the holding company nor subsidiaries have declared dividends as of the date of this prospectus. For the foreseeable
future, the Company intends to use the earnings for research and development, to develop new products and to expand its operations. As
a result, we do not expect to pay any cash dividends.