Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 114

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 114
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 not been disclosed for the years ended December 31, 2024 and 2023, respectively..SalesBelow is a summary of sales to related parties recorded for the years ended December 31, 2024, 2023 and 2022, respectively:Year Ended December 31,(In thousands)202420232022(a)ABC Food Trading, LLC$1,916 $2,078 $3,949 (b)Asahi Food, Inc.565 791 639 (a)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC)1,016 928 1,285 (c)Eagle Food Service, LLC— 1,942 879 (d)First Choice Seafood, Inc.29 31 35 (d)Fortune One Foods, Inc.215 42 115 (e)N&F Logistics, Inc.— 6 40 (f)Union Food LLC— 27 — Total$3,741 $5,845 $6,942 _______________(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)Tina Ni, one of Mr. Zhou Min Ni’s family members, owns an equity interest in this entity indirectly through its parent company.(d)Mr. Zhou Min Ni owns an equity interest in this entity indirectly through its parent company.  (e)Mr. Zhou Min Ni owns an equity interest in this entity.(f)Tina Ni, one of Mr. Zhou Min Ni’s family members, owns an equity interest in this entity.

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Lease AgreementsThe Company leases various facilities to related parties.In 2020, the Company renewed a warehouse lease from Yoan Chang Trading Inc. under an operating lease agreement which expired on December 31, 2020. In February 2021, the Company executed a new five-year operating lease agreement with Yoan Chang Trading Inc., effective January 1, 2021 and expiring on December 31, 2025. Rent expense was $0.3 million, $0.3 million and $0.3 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is included in distribution, selling and administrative expenses in the consolidated statements of operations and comprehensive income