Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 147

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 147
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 issued with respect to the new “resident enterprise” classification could result in a
situation in which the dividends we pay with respect to our ordinary shares, or the gain our non-PRC shareholders may realize from the
transfer of our ordinary shares, may be treated as PRC-sourced income and may therefore be subject to a 10% PRC withholding tax. The EIT
Law and its implementing regulations are, however, relatively new and ambiguities exist with respect to the interpretation and identification
of PRC-sourced income, and the application and assessment of withholding taxes. If we are required under the EIT Law and its implementing
regulations to withhold PRC income tax on dividends payable to our non-PRC shareholders, or if non-PRC shareholders are required to pay
PRC income tax on gains on the transfer of their ordinary shares, our business could be negatively impacted and the value of your investment
may be materially reduced. Further, if we were treated as a “resident enterprise” by PRC tax authorities, we would be subject
to taxation in both China and such countries in which we have taxable income, and our PRC tax may not be creditable against such other
taxes.

We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law.

In connection with this offering, we will become
subject to the U.S. Foreign Corrupt Practices Act (the “FCPA”), and other laws that prohibit improper payments or offers of
payments to foreign governments and their officials and political parties by U.S. persons and issuers as defined by the statute for the
purpose of obtaining or retaining business. We are also subject to Chinese anti-corruption laws, which strictly prohibit the payment of
bribes to government officials. We have operations agreements with third parties, and make sales in China, which may experience corruption.
Our activities in China create the risk of unauthorized payments.

Although we believe, to date, we have complied
in all material respects with the provisions of the FCPA and Chinese anti-corruption law, our existing safeguards and any future improvements
may prove to be less than effective, and the employees, consultants, or distributors may engage in conduct for which we might be held
responsible. Violations of the FCPA or Chinese anti-corruption law may result in severe criminal or civil sanctions, and we may be subject
to other liabilities, which could negatively affect our business, operating results and financial condition. In addition, the