Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 140

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 140
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We must remit the offering proceeds to China before they may be used to benefit our business in China, and this process may take several months to complete.

The process for sending the proceeds from this offering back to China may take as long as six months after the closing of this offering.

Any loans to the PRC subsidiaries are subject to PRC regulations. For example, loans by us to our subsidiaries in China, which are foreign-invested enterprises, to finance their activities cannot exceed statutory limits and must be registered with SAFE.

To remit the proceeds of the offering, we must take the following steps:

| ● | First, we will open a special                                                                                                       
 foreign exchange account for capital account transactions. To open this account, we must submit to SAFE certain application forms,  
 identity documents, transaction documents, form of foreign exchange registration of overseas investments of the domestic residents, 
 and foreign exchange registration certificate of the invested company. As of the date of this prospectus, we have already opened    
 a special foreign exchange account for capital account transactions.                                                                |

| ● | Second, we will remit the                                     
 offering proceeds into this special foreign exchange account. |

| ● | Third, we will apply for                                                                                                             
 settlement of the foreign exchange. In order to do so, we must submit to SAFE certain application forms, identity documents, payment 
 order to a designated person, and a tax certificate.                                                                                 |

The timing of the process is difficult to estimate because the efficiencies of different SAFE branches can vary significantly. Ordinarily the process takes several months but is required by law to be accomplished within 180 days of application.

We may also decide to finance our subsidiaries by means of capital contributions. These capital contributions must be approved by MOFCOM or its local counterpart. We cannot assure you that we will be able to obtain these government approvals on a timely basis, if at all, with respect to future capital contributions by us to our subsidiaries. If we fail to receive such approvals, our ability to use the proceeds of this offering and to capitalize our Chinese operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business. If we fail to receive such approvals, our ability to use the proceeds of this offering and to capitalize our Chinese operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business.

PRC regulation of loans to and direct investment in PRC entities by offshore holding companies to PRC entities may delay or