Company: HFFG
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001680873-25-000036
Chunk: 13

Company: HF Foods Group Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 13
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 he and certain of his immediate family members have ownership interests in related parties involved in (i) the distribution of food and related products to restaurants and other retailers and (ii) the supply of fresh food, frozen food, and packaging supplies to distributors.The related party transactions as of March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025, and 2024, are identified as follows:Related Party Sales, Purchases, and Lease AgreementsPurchasesBelow is a summary of purchases of goods and services from related parties recorded for the three months ended March 31, 2025 and 2024, respectively:Three Months Ended March 31,(In thousands)Nature20252024(a)Asahi Food, Inc.Trade$25 $27 (b)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC)Trade1,024 1,150 (c)Ocean Pacific Seafood Group, Inc.Trade73 80 (c)Rainfield Ranches, LPTrade21 57 Total$1,143 $1,314 _______________(a)The Company, through its subsidiary Mountain Food, LLC, owns an equity interest in this entity.(b)An equity interest is held by three Irrevocable Trusts for the benefit of Mr. Zhang’s children.(c)Mr. Zhou Min Ni owns an equity interest in this entity.

14

SalesBelow is a summary of sales to related parties recorded for the three months ended March 31, 2025 and 2024, respectively:Three Months Ended March 31,(In thousands)20252024(a)ABC Food Trading, LLC$427 $403 (b)Asahi Food, Inc.152 139 (a)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC)342 253 (c)First Choice Seafood, Inc.6 7 (c)Fortune One Foods, Inc.28 16 Total$955 $818 _______________(a)An equity interest is held by three Irrevocable Trusts for the benefit of Mr. Zhang’s children.(b)The Company, through its subsidiary Mountain Food, LLC, owns an equity interest in this entity.(c)Mr. Zhou Min Ni owns an equity interest in this entity indirectly through its parent company.  Lease AgreementsThe Company leases various facilities to related parties.In 2020, the Company renewed a