Here are 1-3 brief analogies for HF Foods (HFFG):

• Sysco for Asian restaurants.
• A specialized US Foods serving the Asian restaurant market.
• Gordon Food Service, but focused exclusively on Asian cuisine and supplies.

• Asian Specialty Food Items: Food products specifically catering to Asian cuisine distributed to restaurants.
• Meat and Poultry Products: Various meat and poultry items supplied to restaurants.
• Seafood: A range of seafood products distributed to restaurants.
• Fresh Produce: Fresh fruits and vegetables supplied to restaurants.
• Packaging and Other Items: Non-food supplies and packaging materials for restaurant operations.
• Commodities: Basic, unspecialized goods distributed by the company.
• Design and Printing Services: Services offered for design and printing needs.
• Logistic Services: Services related to the management and transportation of goods.
• Food Processing Services: Services involved in the preparation and processing of food items.
• Real Estate Holding Activities: The company's involvement in owning and managing real estate.

HF Foods Group Inc. (HFFG) operates as a food service distributor primarily to other businesses, specifically Asian restaurants located in the Southeastern, Pacific, and Mountain West regions of the United States.

Based on the company's public filings, HF Foods serves a highly diversified customer base of approximately 24,000 customers, primarily independent Asian restaurants. No single customer accounts for a significant portion of the company's net sales (typically defined as over 1% or 10% for disclosure purposes). Therefore, HF Foods does not have "major customers" in the sense of large, identifiable companies that contribute a substantial percentage of its revenue, and no specific customer companies can be listed.

1. Allegations of Fraudulent Conduct and Material Weaknesses in Financial Reporting: HF Foods has faced serious allegations and charges related to fraudulent conduct, including materially false and misleading disclosures and misappropriation of funds by former executives. The SEC announced settled charges in June 2024, finding that from August 2018 through 2020, the former Chairman and CEO, along with the former CFO, misappropriated approximately $3.4 million for personal benefit, including luxury vehicles. They were also found to have created a fictitious line of credit to conceal liabilities. Previous reports in 2020 by Hindenburg Research and Watchdog Research highlighted similar concerns regarding undisclosed related-party transactions, shareholder cash used for supercars, and recurring material weaknesses in financial reporting for fiscal years 2018 and 2019. This history of financial impropriety and control deficiencies poses a significant risk to investor confidence, regulatory standing, and the overall integrity of the company's financial operations.
2. Weak Restaurant Traffic and Macroeconomic Headwinds: The company's performance is significantly impacted by external macroeconomic factors, particularly weak restaurant traffic and ongoing tariff pressures. HF Foods continues to struggle with these issues, which limit its ability to improve financial performance. The company has noted a "challenging external environment that includes potential tariff-related cost increases" in various business categories. Furthermore, rising protein costs, new tariffs, and changes in immigration policy threaten customer demand and margins. The foodservice distribution industry, in general, is characterized by low margins, making it highly susceptible to inflation or deflation that can affect product and operational costs and, consequently, profitability.
3. Operational Challenges and Debt Levels: HF Foods faces various operational risks that could impede its efficiency and profitability. These include a potential shortage of qualified labor, which could negatively impact operations and earnings. The company is also exposed to supply chain disruptions caused by geopolitical events, natural disasters, or pandemics. Moreover, HF Foods' growth strategy, which heavily relies on acquisitions, carries integration and financing risks. Financially, the company has concerning debt levels and generates unstable cash flow, with a Debt/EBITDA ratio of 4.3x, making it vulnerable to payment terms and rising interest rates. The company has also recorded significant goodwill impairment charges that have negatively affected its financial results.

U.S. Foodservice Distribution Industry:

• The U.S. foodservice distribution industry recorded sales of $382 billion in 2022.

U.S. Asian Food Market:

• The U.S. Asian food market size is valued at approximately US$ 38.1 billion in 2025 and is projected to reach US$ 52.5 billion by 2032. This market encompasses various formats, including restaurants.

U.S. Specialty Food Market:

• The overall U.S. specialty food market, which includes sales across retail, foodservice, and e-commerce channels, grew to $206.8 billion in 2023. The foodservice segment within the specialty food market experienced an 11.3 percent increase in sales.

Here are the expected drivers of future revenue growth for HF Foods (HFFG) over the next 2-3 years:

1. Organic Growth through Volume and Pricing: HF Foods anticipates revenue growth driven by increased sales volumes and improved pricing strategies, particularly within its existing customer base and across key product categories such as meat, poultry, and seafood. The company has targeted $200 million to $300 million in organic growth opportunities over the next three to five years, primarily within existing accounts.
2. Strategic Acquisitions and Market Expansion: The company plans to expand its geographic reach and enhance its product capabilities through strategic "tuck-in acquisitions" in the Asian specialty foodservice market. Recent acquisitions in regions like Illinois, Texas, and Virginia have already expanded the company's market presence, especially in the seafood category, aiming to access new customers and achieve operational synergies.
3. Expansion of Distribution and Warehouse Capacity: HF Foods is making strategic investments in facility enhancements, including warehouse expansions and renovations in locations such as Charlotte, North Carolina, Chicago, Illinois, and Atlanta, Georgia. These capacity gains are expected to support an increased range of fresh food products and drive higher revenue growth.
4. Capitalizing on Growing Demand for Asian American Cuisine: A core part of HF Foods' strategy is to leverage the increasing demand for Asian American cuisine by expanding its agile distribution network and strengthening relationships with growers and suppliers.
5. Growth in Wholesale and Retail Specialty Food Markets: The company is actively pursuing opportunities in the underserved wholesale specialty food market and expanding its wholesale and retail channels. This strategic focus is expected to continue benefiting the business through increased volumes.

Share Issuance

• HF Foods Group's number of outstanding shares was 51.91 million in 2021, increased to 53.81 million in 2022, and then slightly decreased to 52.73 million in 2024 before rising to 53.03 million in 2025.
• In September 2025, the company announced the authorization of a $100 million at-the-market equity offering program, allowing it to sell shares of common stock.
• Proceeds from this at-the-market program are intended to be used for general corporate purposes, including working capital, capital expenditures, acquisitions, or business expansion.

Outbound Investments

• In September 2025, HF Foods Group entered into a binding purchase agreement for a distribution facility in Chicago, Illinois, which it had previously leased following its acquisition of Great Wall Seafood in 2022.
• This acquisition is part of the company's transformation plan aimed at improving operational efficiency, reducing facility costs, and strengthening organic growth.

Capital Expenditures

• Capital expenditures were approximately $2.21 million in 2021, $6.29 million in 2022, $3.51 million in 2023, and $12.55 million in 2024.
• For the twelve months ending September 30, 2025, capital expenditures totaled approximately $13.13 million.
• HF Foods Group plans to continue investing in its distribution network, including potentially leveraging its at-the-market equity offering program to fund capital expenditures for expansion and strategic acquisitions.