Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 38

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 38
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 Accordingly, any
future failure to obtain prior approval of the CSRC, CAC, or any other Chinese authorities for the listing and trading of our Class A
Ordinary Shares on a foreign stock exchange could have a material adverse effect upon our business. If we or our subsidiaries inadvertently
conclude that such approval or permission is not required, fail to obtain and maintain such approval or permission required, we or our
subsidiaries may face sanctions by the CSRC, CAC or other PRC regulatory agencies for failure to seek CSRC, CAC approval. These sanctions
may include fines and penalties on our operations in China, limitations on our operations in China, delays in or restrictions on the
repatriation of the proceeds from this offering into the PRC, restrictions on or prohibition of the payments or remittance of dividends
by our subsidiaries in China, or other actions that could have a material adverse effect on our business, financial condition, results
of operations, reputation, prospects, the trading price of our Class A Ordinary Shares, and the ability to offer the securities being
registered to foreign investors.

<div align='center'>S-11</div>

On August 8, 2006, six PRC regulatory agencies
jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which
came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules requires that an offshore special purpose vehicle
formed for overseas listing purposes and controlled directly or indirectly by the PRC Citizens shall obtain the approval of the CSRC prior
to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. Based on our understanding
of the Chinese laws and regulations in effect at the time of this prospectus, we will not be required to submit an application to the
CSRC for its approval of this offering and the listing and trading of our ordinary shares on the Nasdaq under the M&A Rules. However,
there remains some uncertainty as to how the M&A Rules will be interpreted or implemented, and the opinions of our PRC counsel summarized
above are subject to any new laws, rules and regulations or detailed implementations and interpretations in any form relating to the M&A
Rules. We cannot assure you that relevant Chinese government agencies, including the CSRC, would reach the same conclusion.

Recently, the General Office of the Central Committee
of the Communist Party of China and the General