Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 145

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 145
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, 2022 and replace the former Measures for Cybersecurity Review (2020).
Measures for Cybersecurity Review (2021) stipulates that operators of critical information infrastructure purchasing network products
and services, and online platform operator (together with the operators of critical information infrastructure, the “Operators”)
carrying out data processing activities that affect or may affect national security, shall conduct a cybersecurity review, any online
platform operator who controls more than one million users’ personal information must go through a cybersecurity review by the cybersecurity
review office if it seeks to be listed in a foreign country. Since we are not an Operator, nor do we control more than one million users’
personal information, we would not be required to apply for a cybersecurity review under the Measures for Cybersecurity Review (2021).

However, if the CSRC or other relevant PRC regulatory
agencies subsequently determine that prior approval is required, failure of obtaining such approval may lead us face regulatory actions
or other sanctions from the CSRC or other PRC regulatory agencies. These regulatory agencies may impose fines and penalties on our operations
in China, limit our ability to pay dividends outside of China, limit our operations in China, delay or restrict the repatriation of the
proceeds from this Offering into China or take other actions that could have a material adverse effect on our business, financial condition,
results of operations and prospects, as well as the Offering of the Shares.

Under the PRC Enterprise Income Tax Law, we may be classified as a “Resident Enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.

China passed the PRC Enterprise Income Tax Law,
or the EIT Law, and its implementing rules, both of which became effective on January 1, 2008, and as amended in December 2018. Under
the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered a “resident
enterprise,” meaning that it can be treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. The
implementing rules of the EIT Law define de facto management as “substantial and overall management and control over the production
and operations, personnel, accounting, and properties” of the enterprise.

On April 22, 2009, the State Administration of
Taxation of China issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese Investment Controlled Enterprises Incorporated
Offshore as Resident