Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 99

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 99
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, the funds or assets may
not be available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions
and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash or assets,” “Risk Factors
— Risks Related to Doing Business in China — We are a holding company and we rely on our subsidiaries for funding dividend
payments, which are subject to restrictions under PRC laws,” and “Risk Factors — Risks Related to Doing Business in
China — Our PRC subsidiaries are subject to restrictions on paying dividends or making other payments to us, which may have a material
adverse effect on our ability to conduct our business.”

As a holding company, 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 on the amount of the funds, subject to satisfaction of applicable government registration,
approval and filing requirements. Erayak HK is also permitted under the laws of Hong Kong to provide funding to ERAYAK Power Solution
Group Inc. and Erayak BVI through dividend distribution without restrictions on the amount of the funds. The PRC has currency and capital
transfer regulations that require us to comply with certain requirements for the movement of capital. The Company is able to transfer
cash (US Dollars) to its PRC subsidiaries through an investment (by increasing the Company’s registered capital in a PRC subsidiary).
The Company’s subsidiaries within China can transfer funds to each other when necessary, through the way of current lending. We
have not been notified of any other restriction which could limit our PRC subsidiaries’ ability to transfer cash between PRC subsidiaries.
As of the date of this prospectus, there has been no distribution of dividends or assets among the holding company or the subsidiaries.
See “Prospectus Summary — Transfers of Cash to and from Our Subsidiaries” on page 4 and “Consolidated Financial
Statements” incorporated by reference into this prospectus.