Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 29

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 29
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 Our future roadmap includes: smart functions such as WiFi control, auto-start, on/off-grid switching; high-power hybrid
systems including 3,000W and above for home and light commercial use; EV-related development including V2L/V2G compatibility and mobile
energy systems; global integration including localized assembly and aftersales network for major regions.

Legal Proceedings

On March 21, 2025, Shenzhen Shilingwei Electronic
Technology Co., Ltd. (“Shilingwei”) initiated legal proceedings against Zhejiang Leiya in connection with a contract dispute,
seeking damages in the amount of RMB 681,691.25 (approximately US$95,288.10). On April 14, 2025, the Wenzhou People’s Court granted
Shilingwei’s application for a property preservation order in the amount of RMB 500,000 (approximately US$69,890.95). On May 4,
2025, Zhejiang Leiya filed a counterclaim against Shilingwei, alleging that the original claim omitted damages Leiya sustained due to
Shilingwei’s use of counterfeit and defective products, and sought RMB 1,393,283.65 (approximately US$194,755.84) in damages. Zhejiang
Leiya further seeks the issuance and delivery of a value-added tax (“VAT”) special invoice in the amount of RMB 588,743.61(approximately
US$82,295.70), as well as reimbursement of its legal fees. The case remains ongoing and is expected to be resolved by the end of 2025,
assuming no appeals are filed.

Transfers of Cash to and from Our Subsidiaries

ERAYAK Power Solution Group Inc. is a holding
company with no operations of its own. We conduct our operations in China primarily through our subsidiaries in China. We may rely on
dividends to be paid by our PRC subsidiaries to fund our cash and financing requirements, including the funds necessary to pay dividends
and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiaries
incur debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other
distributions to us.

ERAYAK Power Solution Group Inc. is permitted
under the Cayman Islands laws to provide funding to our subsidiary in Hong Kong through loans or capital contributions without restrictions