Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 2

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 2
---
 People’s Republic of China, or the PRC or China. Because of our corporate
structure as a Cayman Islands holding company with operations conducted by our PRC subsidiaries, it involves unique risks to investors.
Furthermore, Chinese regulatory authorities could change the rules and regulations regarding foreign ownership in the industry in which
the company operates, which would likely result in a material change in our operations and/or a material change in the value of the securities
we are registering for sale, including that it could cause the value of such securities to significantly decline or become worthless.
Investors in our Class A Ordinary Shares should be aware that they will not and may never directly hold equity interests in the PRC operating
entities, but rather purchasing equity solely in Erayak, our Cayman Islands holding company. Furthermore, shareholders may face difficulties
enforcing their legal rights under United States securities laws against our directors and officers who are located outside of the United
States.

Investing in our Class A Ordinary Shares involves a high degree of risk. Before buying any Class A Ordinary Shares, you should carefully read the discussion of material risks of investing in our Class A Ordinary Shares in “Risk Factors” beginning on page S-18 of this prospectus and our most recent annual report on Form 20-F.

The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest
ourselves of any interest we then hold in Chinese properties. See “Risk Factors — Risks Related to Doing Business in China
— Uncertainties in the interpretation and enforcement of Chinese laws
and regulations could limit the legal protections available to us” on page 34 of the 2024 Annual Report, “Any actions by the Chinese government to exert more oversight and control over offerings that
are conducted overseas and foreign investment