Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 149

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 149
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 be registered with SAFE. On March 30, 2015, SAFE promulgated Hui Fa 2015
No.19, a notice regulating the conversion by a foreign-invested company of foreign currency into RMB. The foreign exchange capital, for
which the monetary contribution has been confirmed by the foreign exchange authorities (or for which the monetary contribution has been
registered for account entry) in the capital account of a foreign-invested enterprise may be settled at a bank as required by the enterprise’s
actual management needs. Foreign-invested enterprises with investment as their main business (including foreign-oriented companies, foreign-invested
venture capital enterprises and foreign-invested equity investment enterprises) are allowed to, under the premise of authenticity and
compliance of their domestic investment projects, carry out based on their actual investment scales direct settlement of foreign exchange
capital or transfer the RMB funds in the foreign exchange settlement account for pending payment to the invested enterprises’ accounts.

On May 10, 2013, SAFE released Circular 21, which
came into effect on May 13, 2013. According to Circular 21, SAFE has simplified the foreign exchange administration procedures with respect
to the registration, account openings and conversions, settlements of FDI-related foreign exchange, as well as fund remittances.

Circular 21 may significantly limit our ability
to convert, transfer and use the net proceeds from this offering and any offering of additional equity securities in China, which may
adversely affect our liquidity and our ability to fund and expand our business in the PRC.

We may also decide to finance our subsidiaries
by means of capital contributions. These capital contributions must be approved by MOFCOM or its local counterpart, which usually takes
no more than 30 working days to complete. We may not be able to obtain these government approvals on a timely basis, if at all, with respect
to future capital contributions by us to our PRC subsidiaries. If we fail to receive such approvals, we will not be able to capitalize
our PRC operations, which could adversely affect our liquidity and our ability to fund and expand our business.

Governmental control of currency conversion may affect the value of your investment.

The PRC government imposes controls on the convertibility
of the RMB into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our
revenues in RMB. Under our current corporate structure, our income is primarily derived from