Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 36

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 36
---
 subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess Fortune CPA’s compliance with applicable professional standards. Fortune CPA is headquartered in Orange, California. As of the date of this prospectus, Fortune CPA is not included in the list of PCAOB Identified Firms in the PCAOB Determination Report issued in December 2021.

<div align='center'>S-10</div>

However, we cannot assure you whether Nasdaq or
regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s
audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or
experience as it relates to the audit of our financial statements. See “Risk Factors — Risks Related to Doing Business in
China — The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies
Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification
of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to
our offering” on page 32 of the 2024 Annual Report.

PRC Regulatory Permissions

In accordance with PRC regulations, a domestic
company is required to maintain a surplus reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of
its respective registered capital based on the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used
for specific purposes and may not be distributed as cash dividends. Ruike, Zhejiang Leiya and Wenzhou New Focus were established as domestic
companies; therefore, each is subject to the above-mentioned restrictions on distributable profits.

As a result of PRC laws and regulations that require
annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends, in a general reserve fund, the Company’s
PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend or otherwise.

Regulatory Permissions

Our Subsidiaries currently have obtained all material
permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations in the PRC, including the
business license and agency bookkeeping license. The business license is a permit issued by Market Supervision and Administration that
allows the company to conduct