Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 165

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 165
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 HFCAA. A company will be required to
comply with these rules if the SEC identifies it as having a “non-inspection” year under a process to be subsequently established
by the SEC. The SEC is assessing how to implement other requirements of the HFCAA, including the listing and trading prohibition requirements
described above.

Despite that we have a U.S.-based auditor that
is registered with the PCAOB and subject to PCAOB inspection, there are still risks to the company and investors if it is later determined
that the PCAOB is unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction.
Such risks include, but are not limited to that trading in our securities may be prohibited under the HFCAA and as a result an exchange
may determine to delist our securities.

The approval of the China Securities Regulatory Commission may be required in connection with this offering, and, if required, we cannot predict whether we will be able to obtain such approval.

The Regulations on Mergers and Acquisitions of
Domestic Companies by Foreign Investors, or the M&A Rules, adopted by six PRC regulatory agencies requires an overseas special purpose
vehicle formed for listing purposes through acquisitions of PRC domestic companies and controlled by PRC companies or individuals to obtain
the approval of the China Securities Regulatory Commission, or the CSRC, prior to the listing and trading of such special purpose vehicle’s
securities on an overseas stock exchange.

We believe that the CSRC’s approval is not
required for the listing and trading of our Class A ordinary shares on Nasdaq in the context of this offering, given that: (i) our PRC
subsidiary was incorporated as a wholly foreign-owned enterprise by means of direct investment rather than by merger or acquisition of
equity interest or assets of a PRC domestic company owned by PRC companies or individuals as defined under the M&A Rules that are
our beneficial owners; (ii) the CSRC currently has not issued any definitive rule or interpretation concerning whether offerings like
ours under this prospectus are subject to the M&A Rules; and (iii) no provision in the M&A Rules clearly classifies contractual
arrangements as a type of transaction subject to the M&A Rules.

However, there remains some uncertainties as to
how the M&A Rules will be interpreted or implemented in the context of an overseas offering and its opinions summarized above are
subject to any new laws, rules and regulations or detailed implementations and interpretations in any form