Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 39

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 39
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RC, restrictions on or prohibition of the payments or remittance of dividends
by our subsidiaries in China, or other actions that could have a material adverse effect on our business, financial condition, results
of operations, reputation, prospects, the trading price of our Class A Ordinary Shares, and the ability to offer the securities being
registered to foreign investors.

<div align='center'>S-12</div>

On August 8, 2006, six PRC regulatory agencies
jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which
came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules requires that an offshore special purpose vehicle
formed for overseas listing purposes and controlled directly or indirectly by the PRC Citizens shall obtain the approval of the CSRC prior
to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. Based on our understanding
of the Chinese laws and regulations in effect at the time of this prospectus, we will not be required to submit an application to the
CSRC for its approval of this offering and the listing and trading of our ordinary shares on the Nasdaq under the M&A Rules. However,
there remains some uncertainty as to how the M&A Rules will be interpreted or implemented, and the opinions of our PRC counsel summarized
above are subject to any new laws, rules and regulations or detailed implementations and interpretations in any form relating to the M&A
Rules. We cannot assure you that relevant Chinese government agencies, including the CSRC, would reach the same conclusion.

Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Strictly Cracking Down on Illegal
Securities Activities, which were made available to the public on July 6, 2021. The Opinions on Strictly Cracking Down on Illegal Securities
Activities emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision
over overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems will
be taken to deal with the risks and incidents of China-based overseas listed companies, and cybersecurity and data privacy protection
requirements and similar matters. It is still uncertain how PRC governmental authorities will regulate overseas listing in general and
whether we are required to obtain any specific regulatory approvals. Furthermore, if the