Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 30

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 30
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 People’s Court granted
Shilingwei’s application for a property preservation order in the amount of RMB 500,000 (approximately US$69,890.95). On May 4,
2025, Zhejiang Leiya filed a counterclaim against Shilingwei, alleging that the original claim omitted damages Leiya sustained due to
Shilingwei’s use of counterfeit and defective products, and sought RMB 1,393,283.65 (approximately US$194,755.84) in damages. Zhejiang
Leiya further seeks the issuance and delivery of a value-added tax (“VAT”) special invoice in the amount of RMB 588,743.61(approximately
US$82,295.70), as well as reimbursement of its legal fees. The case remains ongoing and is expected to be resolved by the end of 2025,
assuming no appeals are filed.

Transfers of Cash to and from Our Subsidiaries

ERAYAK Power Solution Group Inc. is a holding
company with no operations of its own. We conduct our operations in China primarily through our subsidiaries in China. We may rely on
dividends to be paid by our PRC subsidiaries to fund our cash and financing requirements, including the funds necessary to pay dividends
and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiaries
incur debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other
distributions to us.

ERAYAK Power Solution Group Inc. is permitted
under the Cayman Islands laws to provide funding to our subsidiary in Hong Kong through loans or capital contributions without restrictions
on the amount of the funds, subject to satisfaction of applicable government registration, approval and filing requirements. Erayak HK
is also permitted under the laws of Hong Kong to provide funding to ERAYAK Power Solution Group Inc. and Erayak BVI through dividend distribution
without restrictions on the amount of the funds. The PRC has currency and capital transfer regulations that require us to comply with
certain requirements for the movement of capital. The Company is able to transfer cash (US Dollars) to its PRC subsidiaries through an
investment (by increasing the Company’s registered capital in a PRC subsidiary). The Company’s subsidiaries within China can
transfer funds to each other when necessary, through the way of current lending. We have not been notified of any