Company: RAYA
Filing Date: 2025-07-28
Form Type: 424B5
Source: 0001213900-25-067907
Chunk: 150

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-07-28
Form: 424B5
Chunk 150
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The Enterprise Bankruptcy Law of the PRC, or the
Bankruptcy Law, came into effect on June 1, 2007. The Bankruptcy Law provides that an enterprise will be liquidated if the enterprise
fails to settle its debts as and when they fall due and if the enterprise’s assets are, or are demonstrably, insufficient to clear
such debts.

Our PRC subsidiaries hold certain assets that
are important to our business operations. If our PRC subsidiaries undergo a voluntary or involuntary liquidation proceeding, unrelated
third-party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business, which could
materially and adversely affect our business, financial condition and results of operations.

Fluctuations in exchange rates could adversely affect our business and the value of our securities.

Changes in the value of the RMB against the U.S.
dollar, Euro and other foreign currencies are affected by, among other things, changes in China’s political and economic conditions.
Any significant revaluation of the RMB may have a material adverse effect on our revenues and financial condition, and the value of, and
any dividends payable on our shares in U.S. dollar terms. For example, to the extent that we need to convert U.S. dollars we receive from
our initial public offering into RMB for our operations, appreciation of the RMB against the U.S. dollar would have an adverse effect
on RMB amount we would receive from the conversion. Conversely, if we decide to convert our RMB into U.S. dollars for the purpose of paying
dividends on our Class A ordinary shares or for other business purposes, appreciation of the U.S. dollar against the RMB would have a
negative effect on the U.S. dollar amount available to us. In addition, fluctuations of the RMB against other currencies may increase
or decrease the cost of imports and exports, and thus affect the price-competitiveness of our products against products of foreign manufacturers
or products relying on foreign inputs.

Since July 2005, the RMB is no longer pegged to
the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange market to prevent significant
short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly in value against the U.S. dollar in the
medium to long term. Moreover, it is possible that in the future PRC authorities may lift restrictions on fluctuations in the RMB