Company: RAYA
Filing Date: 2025-07-28
Form Type: 424B5
Source: 0001213900-25-067907
Chunk: 146

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-07-28
Form: 424B5
Chunk 146
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 that may
have a retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after the violation.
In addition, any litigation in China may be protracted and result in substantial costs and diversion of resources and management attention.

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PRC regulation of loans and direct investment
by offshore holding companies to PRC entities may delay or prevent us from using the proceeds of this offering to make loans or additional
capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand
our business.

In utilizing the proceeds of this offering in
the manner described in “Use of Proceeds” on page 37 of this prospectus, as an offshore holding company of our PRC operating
subsidiaries, we may make loans to our PRC subsidiaries, or we may make additional capital contributions to our PRC subsidiaries.

Any loans to our PRC subsidiaries are subject
to PRC regulations. For example, loans by us to our subsidiaries in China, which are foreign invested entities (“FIEs”), to
finance their activities cannot exceed statutory limits and must 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.