Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 13

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 13
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 reaches 50% of each of their registered capitals. These reserves are not distributable as cash dividends. See
“Regulations Relating to Dividend Distributions” of the 2024 Annual Report for more information.

Under existing PRC foreign exchange regulations,
payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain
procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval
from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC
foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate
shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where
the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account
transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits,
if any, determined in accordance with Chinese accounting standards and regulations. As of the date of this prospectus, there are no restrictions
or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from
Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities.

To address persistent capital outflows and the
RMB’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and SAFE have implemented
a series of capital control measures in the subsequent months, including stricter vetting procedures for China-based companies to remit
foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. The PRC government may continue to strengthen
its capital controls and our PRC subsidiaries’ dividends and other distributions may be subject to tightened scrutiny in the future.
The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the
PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency
for the payment of dividends from