Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 99

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 99
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 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.

The structure of cash flows within our organization,
and as summary of the applicable regulations, is as follows:

1. Our corporate structure is a direct holding
structure without a VIE structure, that is, the overseas entity to be listed in the U.S., ERAYAK Power Solution Group Inc., or Erayak,
wholly owns Wenzhou Wenjie Information Technology Co. Ltd., or Erayak WFOE or the WFOE, and other domestic operating entities indirectly
through holding of the BVI company, Erayak Power Solution Limited, or Erayak BVI, and Hong Kong company, Erayak Power Solution Hong Kong
Limited, or Erayak HK.

2. Within our direct holding structure, the cross-border
transfer of funds within our corporate group is legal and compliant with the laws and regulations of the PRC. After foreign investors’
funds enter Erayak at the close of this offering, the funds can be directly transferred to Erayak BVI and then Erayak HK, and then transferred
to subordinate operating entities through the WFOE.

If the Company intends to distribute dividends,
Ruike or Zhejiang Leiya will transfer the dividends to Erayak WOFE, which then will transfer the dividends to