Company: SEAH
Filing Date: 2025-07-24
Form Type: DRS
Source: 0001213900-25-067275
Chunk: 56

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-07-24
Form: DRS
Chunk 56
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. While large industrial groups dominate some downstream activities, market entry is limited by licensing hurdles, local supplier dependencies, and strict environmental regulations. Our ability to scale within this fragmented landscape, while maintaining compliance and competitiveness, materially affects our growth prospects. Product and Geographic Diversification We operate across both waste paper and scrap metal categories and conduct cross -bordertrade across Japan, East Asia, Southeast Asia, and North America. This dual diversification mitigates concentration risks, helps us smooth cyclical volatility, and contributes to the stability of our operations. Commitment to Environmental Compliance and Green Economy We are committed to promoting resource reuse and aligning our operations with Japan’s 2050 carbon neutrality goals. This green positioning has helped us attract customers and improve market credibility, supporting revenue opportunities in an increasingly ESG -orientedeconomy. Brand Development and Market Awareness Our future growth depends in part on enhancing the visibility and credibility of our brand among suppliers and customers. Limited brand recognition could constrain our ability to expand business partnerships and may impact our ability to acquire or retain customers efficiently. Supply Chain and Revenue Concentration Risks Our business operations depend on a limited number of major suppliers and customers. While we continue to expand our network, our results of operations could be adversely affected by disruptions, changes in contractual terms, or deteriorating relationships with key trading partners. Macroeconomic and Geopolitical Risks Our results are sensitive to economic slowdowns, fluctuations in consumer demand, inflation, geopolitical conflicts, and trade restrictions in Japan and our key international markets. Events such as the COVID -19pandemic, Middle East conflicts, and regional instability may negatively impact supply chains and customer demand. Key Components of Results of Operations Revenues Our revenues are derived principally from (i) recycling sales, primarily consisting of sales of waste paper and scrap metal, and (ii) technology licensing revenues. For the years ended March 31, 2025 and 2024, our total revenues were approximately US$65.40 million and approximately US$51.00 million, respectively. The following table sets 39

forth a breakdown of our revenues, in absolute amounts and as percentages of total revenues, for the periods indicated. Our revenues increased from approximately US$51.00 million for the year ended March 31, 2024 to approximately US$65.40 million for the year ended March 31, 2025 primarily driven by a 17% increase in average selling price of waste paper, a 39% increase in the average selling price of scrap metal, and a