Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 141

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 141
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 prevent us from making loans or additional capital contributions to our PRC operating subsidiaries.

As an offshore holding company of our PRC subsidiaries, we may make loans to our PRC subsidiaries or may make additional capital contributions to our PRC subsidiaries, subject to satisfaction of applicable governmental registration and approval requirements.

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Any loans we extend to our PRC subsidiaries cannot
exceed the statutory limit and must be registered with the local counterpart of the SAFE.

We may also decide to finance our PRC subsidiaries
by means of capital contributions. According to the relevant PRC regulations on foreign-invested enterprises in China, these capital contributions
are subject to registration with or approval by the MOFCOM or its local counterparts. In addition, the PRC government also restricts the
convertibility of foreign currencies into Renminbi and use of the proceeds. On March 30, 2015, SAFE promulgated Circular 19, which took
effect and replaced certain previous SAFE regulations from June 1, 2015. SAFE further promulgated Circular 16, effective on June 9, 2016,
which, among other things, amend certain provisions of Circular 19. According to SAFE Circular 19 and SAFE Circular 16, the flow and use
of the Renminbi capital converted from foreign currency denominated registered capital of a foreign-invested company is regulated such
that Renminbi capital may not be used for business beyond its business scope or to provide loans to persons other than affiliates unless
otherwise permitted under its business scope. Violations of the applicable circulars and rules may result in severe penalties, including
substantial fines as set forth in the Foreign Exchange Administration Regulations. SAFE Circular 19 and SAFE Circular 16 may significantly
limit our ability to use Renminbi converted from the net proceeds of this offering to fund our PRC operating subsidiaries, to invest in
or acquire any other PRC companies through our PRC Subsidiaries, which may adversely affect our business, financial condition and results
of operations.

Adverse changes in political and economic policies of the PRC government could have a material adverse effect on the overall economic growth of China, which could reduce the demand for our products and services and materially and adversely affect our competitive position.

Substantially all of our business operations are
conducted in China. Accordingly, our business, results of operations, financial condition and prospects are subject to economic, political
and legal developments in China. Although the Chinese