Company: RAYA
Filing Date: 2025-07-28
Form Type: 424B5
Source: 0001213900-25-067907
Chunk: 153

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-07-28
Form: 424B5
Chunk 153
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 (“CSL”), which became effective in June 2017.
The CSL is the first PRC law that systematically lays out the regulatory requirements on cybersecurity and data protection, subjecting
many previously under-regulated or unregulated activities in cyberspace to government scrutiny. The legal consequences of violation of
the CSL include penalties of warning, confiscation of illegal income, suspension of related business, winding up for rectification, shutting
down the websites, and revocation of business license or relevant permits. In April 2020, the Cyberspace Administration of China and certain
other PRC regulatory authorities promulgated the Cybersecurity Review Measures, which became effective in June 2020. Pursuant to the Cybersecurity
Review Measures, operators of critical information infrastructure must pass a cybersecurity review when purchasing network products and
services which do or may affect national security. On July 10, 2021, the Cyberspace Administration of China issued a revised draft of
the Measures for Cybersecurity Review for public comments (“Draft Measures”), which required that, in addition to “operator
of critical information infrastructure,” any “data processor” carrying out data processing activities that affect or
may affect national security should also be subject to cybersecurity review, and further elaborated the factors to be considered when
assessing the national security risks of the relevant activities, including, among others, (i) the risk of core data, important data or
a large amount of personal information being stolen, leaked, destroyed, and illegally used or exited the country; and (ii) the risk of
critical information infrastructure, core data, important data or a large amount of personal information being affected, controlled, or
maliciously used by foreign governments after listing abroad. The Cyberspace Administration of China has said that under the proposed
rules companies holding data on more than 1,000,000 users must now apply for cybersecurity approval when seeking listings in other nations
because of the risk that such data and personal information could be “affected, controlled, and maliciously exploited by foreign
governments,” The cybersecurity review will also investigate the potential national security risks from overseas IPOs. We do not
know what regulations will be adopted or how such regulations will affect us and our listing on Nasdaq. In the event that the Cyberspace
Administration of China determines that we are subject to these regulations, we may be required to delist from Nasdaq and we may be subject
to fines and penalties. On June 10,