Company: SEAH
Filing Date: 2025-08-29
Form Type: DRS/A
Source: 0001213900-25-082696
Chunk: 66

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-08-29
Form: DRS/A
Chunk 66
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%, respectively. This represents an improvement in our gross profit margin of 2.1%, primarily attribute to our revenue growth outpaced the increase in cost of revenue, which was mainly driven by (i) a 36.9% increase in the average selling price of waste paper and scrap metal in recycling sales, compared to a 34.0% increase in the average purchase price, and (ii) contribution from our technology licensing revenue, which also added approximately 0.3% to the gross profit margin. We also continued our effort in expanding our market reach and further optimization in standardized operations processes, which led to improvement in overall cost control. Operating expenses Selling and marketing expenses Our selling and marketing expenses increased by 83.9%, from approximately US$0.67 million for the year ended March 31, 2024 to approximately US$1.24 million for the year ended March 31, 2025, which was mainly attributable to: (i) an increase in logistics expenses from approximately US$0.45 million for the year ended March 31, 2024 to approximately US$0.97 million for the year ended March 31, 2025 due to the increase in sales volume of waste paper, partially offset by the decreased sales volume of scrap metal, which is associated with shipping to customers in line with the growth in recycling sales, (ii) a slight increase in customs clearance fee and other miscellaneous expenses related to sales personnel totaling approximately US$0.08 million, partially offset by a slight decrease in payroll expenses. General and administrative expenses Our general and administrative expenses decreased by 40.4%, from approximately US$1.36 million for the year ended March 31, 2024 to approximately US$0.81 million for the year ended March 31, 2025, primarily due to: (i) a decrease in payroll expenses from approximately US$0.55 million for the year ended March 31, 2024 to approximately US$0.41 million for the year ended March 31, 2025 due to a reduction in director’s salary, (ii) a decrease in expected credit loss of approximately US$0.34 million due to the improved recovery of receivables, (iii) a slight decrease in service charge, rental expenses, professional service expenses and travel expenses totaling approximately US$0.06 million, partially offset by the increase in depreciation and amortization expenses of approximately US$0.03 million. 44 Gain from disposal of property,