HF Foods Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>HF Foods Group Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

HF Foods Group Inc. (HFFG) filed a Annual Report (10-K) with the SEC on March 26, 2024. HF Foods Group Inc. filed its 2023 Form 10-K on March 26, 2024, reporting on the fiscal year ending December 31, 2023. The company's principal business is wholesale groceries and related products, operating under SIC code 5140. HF Foods Group Inc. was formerly known as Atlantic Acquisition Corp. and Stars Acquisition Corp. The filing includes financial data for the fiscal years 2023, 2022, and 2021. The company's business address is located at 6325 South Rainbow Boulevard, Suite 420, Las Vegas, NV.

Why It Matters

For investors and stakeholders tracking HF Foods Group Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of HF Foods Group Inc.'s financial health and strategic direction for the fiscal year 2023, crucial for investors assessing its performance. As a wholesale grocery distributor, the company's annual report offers insights into its market position, operational efficiency, and potential growth opportunities within the food supply chain.

Risk Assessment

Risk Level: medium — HF Foods Group Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains a broad range of information. Specific risks are detailed within the full report, but the absence of immediate, glaring negative financial indicators in the header suggests a medium risk profile for now.

Analyst Insight

Investors should review the full 10-K filing to understand the company's financial performance, risk factors, and management's outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-26 — Filing Date (Date of submission)
• 001-38180 — SEC File Number (Company's SEC file number)
• 812717873 — IRS Number (Company's IRS number)

Key Players & Entities

• HF Foods Group Inc. (company) — Filer name
• Atlantic Acquisition Corp. (company) — Former company name
• Stars Acquisition Corp. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-26 (date) — Filing date
• 5140 (other) — Standard Industrial Classification
• 6325 South Rainbow Boulevard, Suite 420, Las Vegas, NV (location) — Business address

FAQ

Industry Context

HF Foods Group Inc. operates in the wholesale grocery and related products sector, a critical part of the food supply chain.

Regulatory Implications

As a publicly traded company, HF Foods Group Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of annual reports on Form 10-K.

What Investors Should Do

1. Review the full 10-K for detailed financial statements and performance metrics.
2. Analyze the 'Risk Factors' section for potential challenges and uncertainties.
3. Examine management's discussion and analysis (MD&A) for strategic insights and future outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-26: Filing Date — Date HF Foods Group Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing. A comparison to the previous year's filing would require access to that document.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value HFFG Nasdaq Capital Market

Filing Documents

• hffg-20231231.htm (10-K) — 2213KB
• a202310k-ex45.htm (EX-4.5) — 48KB
• a202310k-ex211.htm (EX-21.1) — 35KB
• a202310k-ex231.htm (EX-23.1) — 2KB
• a202310k-ex311.htm (EX-31.1) — 10KB
• a202310k-ex312.htm (EX-31.2) — 9KB
• a202310k-ex321.htm (EX-32.1) — 4KB
• a202310k-ex322.htm (EX-32.2) — 4KB
• a202310k-ex971.htm (EX-97.1) — 36KB
• hffg-20231231_g1.jpg (GRAPHIC) — 85KB
• 0001680873-24-000010.txt (&nbsp;) — 12018KB
• hffg-20231231.xsd (EX-101.SCH) — 79KB
• hffg-20231231_cal.xml (EX-101.CAL) — 114KB
• hffg-20231231_def.xml (EX-101.DEF) — 567KB
• hffg-20231231_lab.xml (EX-101.LAB) — 889KB
• hffg-20231231_pre.xml (EX-101.PRE) — 754KB
• hffg-20231231_htm.xml (XML) — 1680KB

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 24

Cybersecurity

Item 1C. Cybersecurity 24

Properties

Item 2. Properties 25

Legal Proceedings

Item 3. Legal Proceedings 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 26 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27

[Reserved]

Item 6. [Reserved] 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 37

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 38

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 79

Controls and Procedures

Item 9A. Controls and Procedures 79

Other Information

Item 9B. Other Information 82

D isclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. D isclosure Regarding Foreign Jurisdictions that Prevent Inspections 82 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 83

Executive Compensation

Item 11. Executive Compensation 83

Security Ownership of Certain Beneficial Owners and Management and Related Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Matters 83

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 83

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 83 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 83

Form 10-K Summary

Item 16. Form 10-K Summary 86 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY This Annual Report on Form 10-K for HF Foods Group Inc. ("HF Foods", the "Company," "we," "us," or "our") contains forward-looking statements. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "will" or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, include without limitation: Low margins in the foodservice distribution industry and periods of significant or prolonged inflation or deflation; Qualified labor shortages; Unfavorable macroeconomic conditions in the United States; Competition in the foodservice distribution industry particularly the entry of new competitors into the Chinese/Asian restaurant supply market niche; Increases in fuel costs; Disruption of relationships with vendors and increases in product prices; Dependency on the timely delivery of products from vendors, particula

BUSINESS

ITEM 1. BUSINESS. Overview HF Foods Group Inc., operating through our subsidiaries, is a leading foodservice distributor to Asian restaurants, primarily Chinese restaurants located throughout the United States. HF Foods was formed through a merger between two complementary market leaders, HF Foods and B&R Global Holdings, Inc. ("B&R Global"), on November 4, 2019. With 18 distribution centers and cross-docks and a fleet of over 400 refrigerated vehicles, our distribution network now spans 46 states covering approximately 95% of the contiguous United States. Capitalizing on our deep understanding of the Chinese culture, with over 1,000 employees and subcontractors, and supported by two outsourced call centers in China, we have become a trusted partner serving approximately 15,000 Asian restaurants providing sales and service support to customers who mainly converse in Mandarin or Chinese dialects. We are committed to providing excellent customer service by delivering a distinctive product portfolio built from an indelible partnership with both foreign and domestic suppliers. These relationships ensure that we deliver an outstanding array of products at competitive prices. Our relationships with suppliers and knowledge of the market are the cornerstones of our negotiating power with suppliers and enable us to better manage potential supply chain disruptions and stockouts, gain price concessions and increase delivery schedules. Corporate History HF Foods was originally incorporated in the State of Delaware on May 19, 2016 as a special purpose acquisition company under the name Atlantic Acquisition Corp. ("Atlantic"), in order to acquire, through a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with, one or more businesses or entities. On August 22, 2018, Atlantic consummated a reverse acquisition transaction resulting in the shareholders of HF Group Holding Corporation ("HF Holdin

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View this 10-K filing on SEC EDGAR