Company overview

Erayak Power Solution Group Inc. makes equipment that converts electricity or generates power for vehicles, appliances, outdoor use and backup supply. Inverters, which convert direct current into alternating current, and gasoline generators bring in most of its revenue. Its main buyers are wholesalers, distributors and retailers; China accounts for most sales, with overseas markets providing the rest.

Manufacturing takes place primarily through its Chinese subsidiaries. Zhejiang Leiya builds products to customer specifications: it checks whether a design is feasible, supplies a prototype and quote for approval, then buys materials, manufactures and delivers the order. Erayak also sells directly through retail channels, including Amazon. Revenue depends on customer orders and their timing rather than one dominant buyer, while cash flow depends on customers paying their bills.

The listed company is a holding company whose funding depends on payments from its Chinese subsidiaries. Chinese rules limit subsidiary dividends to distributable profits and restrict currency conversion and cross-border transfers, so cash earned in China is not freely available to the offshore parent.