HF Foods Group (HFFG) investor relations material

Market position and growth opportunities

• Holds a 16% market share in the $15B Asian specialty food service segment, the fastest-growing part of the broader food service industry.

• Serves 94,000 Asian restaurants, mostly independent, with high customer retention rates in the 90% range.

• Sees significant runway for growth, with a $50B addressable market and current revenues of $1.2B.

• Differentiates through cultural connections, language, and a specialized product portfolio of over 20,000 SKUs, half of which are Asian specialty items.

Competitive advantages and business model

• Focuses on independent restaurants, which offer higher margin opportunities compared to large chains.

• Maintains flexibility by operating on a spot market basis without long-term commitments, allowing quick adaptation to market changes.

• Leverages strong supplier and customer relationships, creating a unique moat in the industry.

Strategic initiatives and capital deployment

• Recent transformation includes system, facility, and fleet upgrades, with ongoing investments in capacity and capability.

• Actively pursuing M&A, targeting synergistic acquisitions in existing markets and planning geographic expansion, especially in the Mid Atlantic and New England.

• Past M&A success includes expanding frozen seafood operations, growing that category from $300M to $400M.

• Organic growth focus includes cross-selling, facility expansion, and increasing share of wallet with existing customers.