Company: HFFG
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001680873-25-000022
Chunk: 38

Company: HF Foods Group Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 38
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 served in the role of Interim Chief Financial Officer until Ms. Yao was appointed Chief Financial Officer, effective May 1, 2024. Mr. Lin received an additional $20,000 for each month served as Interim Chief Financial Officer. On October 24, 2024, the Company terminated Mr. Zhang as Chief Executive Officer of the Company, without cause. Mr. Zhang currently serves as a director of the Company and is not standing for re-election at the Annual Meeting. On October 24, 2024, Mr. Lin was appointed to serve as Interim Chief Executive Officer while continuing to serve as the Company’s Chief Operating Officer and President. Mr. Lin received an additional $15,000 for each month served as Interim Chief Executive Officer.

Subsequent Events

On December 17, 2024, the Company appointed Mr. Lin to serve as the Company’s Chief Executive Officer, effective January 1, 2025. In connection with his appointment, his base salary was increased to $675,000.

Annual Cash Incentive Compensation

The Company approves an annual management incentive program (“AIP”) pursuant to which named executive officers are entitled to receive cash bonuses based on achievement of certain company performance metrics. For 2024, seventy percent (70%) of each NEO’s target cash incentive was tied to the Company’s financial performance, and thirty percent (30%) was tied to achievement of three individual initiative-based targets. The financial targets for 2024 and results were as follows:

| Metric                   |     | Weighting of Total 70% |     | $ Target      |     | $ Result      |     | % of Target |
| Net Revenue              |     | 10%                    |     | 1.155 billion |     | 1.202 billion |     | 104%        |
| Gross Profit             |     | 45%                    |     | 209.9 million |     | 205.2 million |     | 98%         |
| Internal Adjusted EBITDA |     | 45%                    |     | 50.1 million  |     | 44.3 million  |     | 88%         |

The individual initiative-based targets for Mr. Lin included reducing the number of material weaknesses, implementing a new inventory and distribution system for all distribution centers, and achieving less than 17% of distribution, selling and administrative expenses as a percentage of total net revenue. For Ms. Yao, the individual initiatives included reducing the number