Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 3

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 3
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 in China-based issuers could significantly limit or completely hinder our ability to offer
or continue to offer our Class A Ordinary Shares to investors and cause the value of our Class A Ordinary Shares to significantly decline
or be worthless. The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies
by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China” on page 21 of the 2024 Annual Report, and
“We may lose the ability to offer or continue to offer securities to investors and cause the value of such securities to significantly
decline or be worthless if the Chinese government may exert more oversight and control over offerings that are conducted overseas and/or
foreign investment in China-based issuers” on page 32 of the 2024 Annual Report.

In particular, as substantially all of our operations
are conducted through the PRC subsidiaries, we are subject to certain legal and operational risks associated with our operations in China,
including those changes in the legal, political and economic policies of the Chinese government, the relations between China and the United
States, or Chinese or United States regulations may materially and adversely affect our business, financial condition and results of operations.
PRC laws and regulations governing our current business operations are sometimes vague and uncertain, and therefore, these risks could
result in a material change in our operations and/or the value of our ordinary shares or could significantly limit or completely hinder
our ability to offer or continue to offer securities to investors and cause the value of our ordinary shares to significantly decline
or be worthless. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations
in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over
China-based companies listed overseas using variable interest entity structure, adopting new measures to extend the scope of cybersecurity
reviews, and expanding the efforts in anti-monopoly enforcement.

As confirmed by our PRC counsel, Gaopeng &
Partners, we will not be subject to cybersecurity review with the Cyberspace Administration of China, or the “CAC,” after
the Cybersecurity Review Measures became effective on February 15, 2022, since we currently do not have over one million users’
personal information and do not anticipate that we will be collecting over one million users’ personal information in the foreseeable
future, which we understand might otherwise subject us to the Cybersecurity Review Measures; we are also not subject to network data security
review