Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 160

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 160
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to monitor and oversee cross-border securities activities, such regulatory cooperation with the securities regulatory authorities in the
U.S. may not be efficient in the absence of a practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities
Law, or “Article 177,” which became effective in March 2020, no overseas securities regulator is allowed to directly conduct
investigations or evidence collection activities within the territory of the PRC. Article 177 further provides that Chinese entities and
individuals are not allowed to provide documents or materials related to securities business activities to foreign agencies without prior
consent from the securities regulatory authority of the PRC State Council and the competent departments of the PRC State Council. While
the detailed interpretation of or implementing of rules under Article 177 have to be promulgated, the inability of an overseas securities
regulator to directly conduct investigation or evidence collection activities within China may further increase the difficulties faced
by you in protecting your interests.

You may face difficulties in protecting your interests and exercising your rights as a shareholder since we conduct substantially all of our operations in China, and all of our officers and directors reside outside the U.S.

Although we are incorporated in the Cayman Islands,
we conduct substantially all of our operations in China. All of our current officers and all of our directors reside outside the U.S.
and substantially all of the assets of those persons are located outside of the U.S. It may be difficult for you to conduct due diligence
on the Company or such directors in your election of the directors and attend shareholders meeting if the meeting is held in China. We
plan to have one shareholder meeting each year at a location to be determined, potentially in China. As a result of all of the above,
our public shareholders may have more difficulty in protecting their interests through actions against our management, directors or major
shareholders than would shareholders of a corporation doing business entirely or predominantly within the U.S.

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Our financial and operating performance may be adversely affected by general economic conditions, natural catastrophic events, epidemics, and public health crises that impact the metaverse industry.

Our operating results will be subject to fluctuations
based on general economic conditions, in particular those conditions that impact the metaverse industry. Deterioration in economic conditions
could cause decreases in both volume and reduce and/or negatively impact our short-term ability to grow our revenues. Further, any decreased
collectability of accounts receivable or early termination of agreements due to deterioration