Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 9

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 9
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 Business in China — The
recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies
Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the
qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add
uncertainties to our offering” on page 32 of the 2024 Annual Report.

Our management monitors the cash position of each
entity within our organization regularly and prepare budgets on a monthly basis to ensure each entity has the necessary funds to fulfill
its obligation for the foreseeable future and to ensure adequate liquidity. In the event that there is a need for cash or a potential
liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we will enter into
an intercompany loan for the subsidiary in accordance with the applicable PRC laws and regulations. However, 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. See “Risk Factors —
Risks Related to Doing Business in China — To the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong
Kong entity, 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” on page 22 of the 2024 Annual Report

Under existing PRC foreign exchange regulations,
payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain
procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval
from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC
foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate
shareholders who are PRC residents. Approval from, or registration with