Core Points - HF Foods Group Inc. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.04 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $314.85 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.34% and increasing from $302.34 million year-over-year [2] - HF Foods Group has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Future Outlook - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $306.24 million, while for the current fiscal year, the estimate is $0.45 on revenues of $1.23 billion [7] - The estimate revisions trend for HF Foods Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Food - Miscellaneous industry, to which HF Foods Group belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Flowers Foods, is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of -19.4%, with revenues projected at $1.27 billion, up 3.6% from the previous year [9][10]

Financial Data and Key Metrics Changes - Net revenue increased by 4.1% year over year to $314.9 million, and gross profit increased by 5.1% to $55.1 million [5][12] - Adjusted EBITDA rose by 31.1% year over year to $13.8 million, while net income surged by 117% to $500,000 [5][14] - Gross profit margin increased by 13 basis points to 17.5% [13] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in the meat and seafood categories [12] - Distribution, selling, and administrative expenses increased by $1.2 million to $51 million, but as a percentage of net revenue, these expenses decreased from 16.5% to 16.2% [13] Market Data and Key Metrics Changes - The company observed lower exit velocity and foot traffic towards the end of Q2 and into Q3, impacting consumer spending [6][21] - The company noted that 99% of its customers are independently run restaurants, with a mix of takeout, dine-in, and buffet types [21] Company Strategy and Development Direction - The company is committed to capital investment and growing capacity, with a focus on digital transformation and infrastructure improvements [6][16] - M&A remains a core pillar of the growth strategy, with a focus on expanding geographic footprint and capturing operational synergies [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth strategy despite short-term uncertainties, emphasizing the importance of strategic investments [6][16] - The company anticipates a lower single-digit growth rate for 2025, around 2% to 2.5%, in line with industry averages [29] Other Important Information - The company successfully deployed a new ERP application across its network, which is expected to enhance efficiency and control [7][8] - The strategic facility enhancements are expected to create organic growth opportunities through expanded cross-selling capabilities [9] Q&A Session Summary Question: How is the Asian Specialty market faring in the current environment? - Management noted that foot traffic has been impacted by recent immigration policy changes, particularly affecting buffet restaurants [20][21] Question: How to prioritize strategic investment projects? - The company is focusing on organic growth through capacity investments and is also evaluating M&A opportunities, with most projects expected to be funded through cash flow [22][25] Question: What are the growth expectations for 2025? - Management expects a growth rate of around 2% to 2.5% for 2025, with significant organic growth opportunities identified over the next three to five years [29][30] Question: What are the tariff impacts on customers? - Management indicated that while tariffs are a concern, foot traffic and consumer spending are more significant factors affecting business volume [36][39] Question: What is the expected margin benefit from the ERP implementation? - Management stated that while it is difficult to quantify exact margin expansion, the goal is to achieve a 5% EBITDA margin over the next three to five years [47]

Financial Performance - Net revenue for the three months ended June 30, 2025, increased by $12.5 million, or 4.1%, compared to the same period in 2024, primarily due to volume increases and improved pricing in Meat & Poultry and Seafood [125]. - Gross profit was $55.1 million for the three months ended June 30, 2025, an increase of $2.7 million, or 5.1%, with a gross profit margin of 17.5% compared to 17.4% in the same period in 2024 [126]. - Net revenue for the six months ended June 30, 2025 increased by $15.3 million, or 2.6%, compared to the same period in 2024, driven by volume growth and improved pricing in key categories [136]. - Gross profit for the six months ended June 30, 2025 was $106.1 million, an increase of $3.2 million, or 3.1%, with a gross profit margin slightly rising to 17.3% [137]. - Adjusted EBITDA for the six months ended June 30, 2025 was $23.6 million, an increase of $4.4 million, or 22.6%, compared to $19.3 million in the same period in 2024 [142]. - EBITDA for the six months ended June 30, 2025 was $18.0 million, a decrease of $2.3 million compared to $20.3 million in the same period in 2024 [142]. - Net income attributable to HF Foods Group, Inc. was $1.2 million for the three months ended June 30, 2025, compared to $17.0 thousand for the same period in 2024, driven by an increase in income from operations [131]. - Net loss attributable to HF Foods Group Inc. improved to $0.4 million for the six months ended June 30, 2025, compared to a net loss of $0.7 million in the same period in 2024 [141]. Expenses and Costs - Distribution, selling and administrative expenses increased by $1.2 million, or 2.4%, to $51.0 million, while as a percentage of net revenue, it decreased to 16.2% from 16.5% in the same period in 2024 [127]. - Distribution, selling and administrative expenses slightly increased to $100.8 million for the six months ended June 30, 2025, but as a percentage of net revenue decreased to 16.4% [138]. - Interest expense for the three months ended June 30, 2025, was $2.8 million, a slight decrease from $3.1 million in the same period in 2024, with average floating interest rates decreasing by approximately 1.0% [128]. - Interest expense for the six months ended June 30, 2025 decreased by $0.5 million, or 8.9%, due to a reduction in the average daily mortgage-secured term loan balance [139]. - Income tax expense was $521 thousand for the three months ended June 30, 2025, compared to $1.6 million for the same period in 2024, primarily due to discrete tax expense items impacting the prior year's provision [129]. Operational Initiatives - The company has initiated a comprehensive operational transformation plan focused on centralized purchasing, fleet and transportation improvements, digital transformation, and facility upgrades to drive growth and cost savings [111]. - The implementation of a modern ERP solution across all distribution centers is expected to enhance operational efficiency and data-driven decision-making [111]. - The company aims to capitalize on the increasing demand for Asian American restaurant cuisine by leveraging its nationwide distribution network and strong supplier relationships [110]. - The company acquired two frozen seafood suppliers in 2022, expanding its distribution network across multiple states including Illinois, Texas, and along the eastern seaboard [109]. Cash and Debt Management - Net cash provided by operating activities increased by $8.5 million to $10.5 million for the six months ended June 30, 2025, primarily due to an increase in non-cash expense add-backs [152]. - As of June 30, 2025, the company had cash of approximately $15.7 million and access to $57.8 million in additional funds through its line of credit [144]. - As of June 30, 2025, the company's aggregate floating rate debt's outstanding principal balance was $62.9 million, representing 37.7% of total debt [165]. - The company is party to an amortizing interest rate swap contract with JPMorgan Chase for an initial notional amount of $120.0 million, expiring in March 2028 [146]. - The company manages its debt portfolio to maintain a desired proportion of fixed and floating rate debts, utilizing interest rate swaps as necessary [164]. Fair Value and Impairment - The company categorized its fair value determination as Level 3 in the fair value hierarchy due to reliance on internal projections and unobservable inputs [158]. - Sensitivity analyses indicated that a 100 basis point increase in the discount rate could decrease the fair value of the reporting unit by approximately $11.6 million [160]. - The company assessed that there were no events during the six months ended June 30, 2025, that would likely reduce the fair value of the reporting unit below its carrying value [162]. - The assumptions used in impairment testing are subject to change based on market conditions and are interdependent, requiring significant judgment [159]. - The company recorded a goodwill impairment charge of $46.3 million during Q4 2024 due to a decline in stock price, indicating impairment as of December 31, 2024 [156]. Market Conditions - Average diesel fuel prices decreased by 7.8% in Q2 2025 compared to the same period in 2024, although future prices remain unpredictable [166]. - The company does not actively hedge diesel fuel price fluctuations but aims to minimize risk through delivery route optimization and fleet utilization improvements [168]. - A hypothetical 1% change in the applicable rate would result in an approximate $0.6 million change in annual interest expense on floating rate debt [165].

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) HF Foods Group Inc. reports strong Q2 2025 financial results, driven by strategic initiatives and operational efficiencies [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported record net revenue and gross profit for Q2 2025, attributing success to transformation initiatives, ERP implementation, and active M&A evaluation - Reported **record quarterly net revenue and gross profit**, demonstrating momentum from transformation initiatives[3](index=3&type=chunk) - Successfully completed the implementation of its ERP system across the entire network, creating a unified platform to enhance operational efficiency[3](index=3&type=chunk) - Actively evaluating attractive M&A opportunities to expand geographic footprint and enhance product capabilities[3](index=3&type=chunk) [Second Quarter 2025 Results Summary](index=1&type=section&id=Second%20Quarter%202025%20Results%20Summary) HF Foods achieved strong Q2 2025 growth with net revenue up 4.1% to $314.9 million, gross profit up 5.1% to $55.1 million, and Adjusted EBITDA up 31.1% to $13.8 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $314.9M | $302.3M | +$12.6M | +4.1% | | Gross Profit | $55.1M | $52.5M | +$2.6M | +5.1% | | Gross Margin | 17.5% | 17.4% | +13 bps | - | | Net Income | $0.5M | $0.2M | +$0.3M | +117.0% | | Adjusted EBITDA | $13.8M | $10.6M | +$3.2M | +31.1% | | GAAP Diluted EPS | $0.02 | $0.00 | +$0.02 | - | | Non-GAAP Diluted EPS | $0.12 | $0.04 | +$0.08 | +200.0% | [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) Revenue growth was driven by higher volumes and pricing in Meat & Poultry and Seafood, with improved operational efficiency leading to a 117.0% increase in net income - Revenue growth was primarily driven by **volume increases and improved pricing** in Meat & Poultry and Seafood[4](index=4&type=chunk)[6](index=6&type=chunk) - Distribution, selling and administrative expenses as a percentage of net revenue decreased from **16.5% to 16.2%** year-over-year, mainly due to increased net revenue and lower professional fees[7](index=7&type=chunk) - The significant increase in net income was driven by a **$1.5 million rise in income from operations**[8](index=8&type=chunk) [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) Operating cash flow significantly increased to $10.5 million for the six months ended June 30, 2025, with strong cash reserves and available credit Cash Flow and Liquidity Summary (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $10.5M | $1.9M | | **As of June 30, 2025** | | | | Cash | $15.7M | - | | Available Line of Credit | ~$57.8M | - | [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements provide a detailed overview of the company's balance sheet, income statement, and cash flows for Q2 2025 and the six-month period [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $593.5 million by June 30, 2025, driven by inventories, while liabilities also rose due to accounts payable and line of credit increases Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$202,166** | **$178,103** | | Inventories | $127,240 | $97,783 | | **Total Assets** | **$593,537** | **$549,991** | | **Total Current Liabilities** | **$169,699** | **$145,199** | | Line of credit | $60,815 | $57,483 | | Accounts payable | $68,251 | $50,644 | | **Total Liabilities** | **$352,420** | **$308,697** | | **Total Shareholders' Equity** | **$241,117** | **$241,294** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net revenue was $314.9 million and net income $0.5 million, while the six-month period recorded a net loss of $1.0 million Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $314,853 | $302,342 | | Gross profit | $55,132 | $52,465 | | Income from operations | $4,119 | $2,625 | | Net Income | $510 | $235 | | Diluted EPS | $0.02 | $0.00 | Statement of Operations Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $613,281 | $597,996 | | Gross profit | $106,091 | $102,876 | | Income from operations | $5,273 | $2,540 | | Net Loss | $(1,020) | $(324) | | Diluted EPS | $(0.01) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $10.5 million for the six months ended June 30, 2025, resulting in a $1.2 million net increase in cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,468 | $1,941 | | Net cash used in investing activities | $(6,592) | $(6,331) | | Net cash (used in) provided by financing activities | $(2,693) | $3,126 | | **Net increase (decrease) in cash** | **$1,183** | **$(1,264)** | | Cash at end of the period | $15,650 | $13,968 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures, including EBITDA, Adjusted EBITDA, non-GAAP net income, and EPS, to GAAP results [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures like Adjusted EBITDA and non-GAAP EPS provide investors with a clearer view of core operating performance by excluding non-recurring items - The company uses non-GAAP measures to provide additional tools for investors to evaluate ongoing operating results and trends[15](index=15&type=chunk) - Adjusted EBITDA is used to measure operating performance, excluding items like interest, taxes, depreciation, amortization, and other non-recurring or non-cash expenses[16](index=16&type=chunk) - Non-GAAP net income and EPS exclude items not reflective of core operating performance to facilitate period-over-period comparisons[17](index=17&type=chunk) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 increased to $13.8 million, reconciled from net income by adjusting for interest, taxes, D&A, and specific non-recurring items Adjusted EBITDA Reconciliation for Q2 (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income** | **$510** | **$235** | | Interest expense, net | $2,775 | $3,119 | | Income tax expense | $521 | $1,599 | | Depreciation and amortization | $7,261 | $6,590 | | **EBITDA** | **$11,067** | **$11,543** | | Lease guarantee income | — | $(5,433) | | SEC settlement | — | $3,900 | | Executive transition | $829 | — | | **Adjusted EBITDA** | **$13,845** | **$10,561** | [Reconciliation to Non-GAAP Net Income and EPS](index=8&type=section&id=Reconciliation%20to%20Non-GAAP%20Net%20Income%20and%20EPS) Non-GAAP net income for Q2 2025 was $6.4 million, leading to a Non-GAAP diluted EPS of $0.12, after adjusting for various non-core items Non-GAAP Net Income & EPS Reconciliation for Q2 (in thousands, except per share) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income attributable to HF Foods** | **$1,216** | **$17** | | Amortization of intangibles | $4,021 | $4,070 | | Lease guarantee income | — | $(5,433) | | SEC settlement | — | $3,900 | | **Non-GAAP net income** | **$6,383** | **$2,329** | | **GAAP diluted EPS** | **$0.02** | **$0.00** | | **Non-GAAP diluted EPS** | **$0.12** | **$0.04** | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of HF Foods Group Inc.'s business and includes important disclosures regarding forward-looking statements [Company Overview](index=2&type=section&id=Company%20Overview) HF Foods Group Inc. is a leading distributor of food and non-food products to Asian restaurants across the United States - HF Foods is a leading distributor of foodservice products to primarily Asian restaurants throughout the United States[12](index=12&type=chunk) - The company aims to supply the increasing demand for Asian American restaurant cuisine via its nationwide distribution network[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, and readers are cautioned against undue reliance - The report includes forward-looking statements based on current expectations, which are subject to risks and uncertainties[14](index=14&type=chunk) - Key risks include the ability to execute the operational transformation plan, impacts of demographic trends, and potential tariff-related costs[14](index=14&type=chunk)

Core Insights - HF Foods Group Inc. reported record net revenue and gross profit for the second quarter of 2025, reflecting the success of its transformation initiatives and strategic priorities [3][4][10] Financial Performance - Net revenue for Q2 2025 was $314.9 million, an increase of $12.5 million or 4.1% from $302.3 million in Q2 2024, driven by volume increases and improved pricing in Meat & Poultry and Seafood [4][10] - Gross profit rose to $55.1 million, up $2.7 million or 5.1% from $52.5 million in the prior year, with a gross profit margin increase to 17.5% from 17.4% [5][10] - Net income surged 117.0% to $0.5 million compared to $0.2 million in the same quarter last year, primarily due to an increase in income from operations [7][10] - Adjusted EBITDA increased by 31.1% to $13.8 million from $10.6 million in the prior year [8][10] Expense Management - Distribution, selling, and administrative expenses rose by $1.2 million or 2.4%, but as a percentage of net revenue, they decreased from 16.5% to 16.2% due to higher net revenue and lower professional fees [6][10] Cash Flow and Liquidity - Cash provided by operating activities was $10.5 million for the first half of 2025, significantly up from $1.9 million in the same period last year, attributed to an increase in non-cash expense add-backs [11][10] - As of June 30, 2025, the company had cash of $15.7 million and access to approximately $57.8 million in additional funds through a line of credit [11][10] Strategic Outlook - The company is focused on expanding its geographic footprint and enhancing product capabilities through strategic investments and potential M&A opportunities [3][10]

Core Viewpoint - HF Foods Group Inc. will report its financial results for the second quarter ended June 30, 2025, on August 11, 2025, after market close [1][2]. Company Overview - HF Foods Group Inc. is a leading distributor of international foodservice solutions, primarily serving Asian restaurants and other businesses across the United States [3]. - The company specializes in fresh produce, frozen and dry food, and non-food products, aiming to meet the growing demand for Asian American cuisine [3]. - HF Foods operates a nationwide network of distribution centers and maintains strong relationships with growers and suppliers in the US and Asia [3]. - The company is headquartered in Las Vegas, Nevada, and trades on Nasdaq under the symbol "HFFG" [3].

Group 1 - HF Foods Group (NASDAQ: HFFG) experienced a significant stock increase of over 180% after achieving a double beat in March, raising concerns about potential negative impacts from a double miss in future performance [1] - The analysis of restaurant stocks encompasses various segments, including QSR, fast casual, casual dining, fine dining, and family dining, utilizing advanced analytical models and specialized valuation techniques [1] - The company aims to provide detailed insights and actionable strategies to assist investors in making informed decisions within the U.S. restaurant market [1]

Core Insights - HF Foods Group Inc. reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.13 per share, representing an earnings surprise of -46.15% [1] - The company posted revenues of $298.43 million for the quarter, which was 1.73% below the Zacks Consensus Estimate, but an increase from $295.65 million year-over-year [2] - The stock has increased approximately 35.5% since the beginning of the year, contrasting with a -3.8% decline in the S&P 500 [3] Earnings Performance - Over the last four quarters, HF Foods Group has surpassed consensus EPS estimates only once [2] - The company had a favorable trend in estimate revisions ahead of the earnings release, currently holding a Zacks Rank 2 (Buy) [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $310.37 million, and for the current fiscal year, it is $0.50 on revenues of $1.23 billion [7] - The outlook for the industry, specifically the Food - Miscellaneous sector, is in the bottom 44% of Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Net revenue increased by 0.9% year over year to $298.4 million from $295.7 million in the prior year quarter [12] - Adjusted EBITDA increased by 12.3% year over year to $9.8 million from $8.7 million [15] - Gross profit increased by 1.1% to $51 million compared to $50.4 million in the same period in 2024 [12] - Operating income improved to $1.2 million from an operating loss of $0.1 million in the prior year quarter [14] - Net loss increased to $1.5 million from a net loss of $0.6 million in the prior year quarter, primarily due to unfavorable changes in interest rate swaps [14] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in commodity, meat, poultry, and seafood categories [12] - Gross profit margin remained consistent at 17.1% compared to the same period in 2024 [13] - Distribution, selling, and administrative expenses decreased by $0.7 million to $49.7 million due to cost optimization efforts [13] Market Data and Key Metrics Changes - The industry continues to face macro headwinds, particularly due to new tariff policies and supply chain disruptions [6] - The company is actively diversifying its supplier base and exploring alternative sourcing strategies to mitigate these challenges [6] Company Strategy and Development Direction - The company is focused on executing comprehensive transformation initiatives, with 2025 being a year of strategic investment [16] - Investments in digital transformation and infrastructure are aimed at driving organic growth and complementing expansion with targeted M&A initiatives [16] - The company aims to optimize its distribution network and enhance its operational capabilities through strategic facility enhancements [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and long-term plans despite short-term uncertainties [5][16] - The successful implementation of a new ERP application is expected to improve efficiency and decision-making across operations [7] - The company remains optimistic about M&A opportunities in 2025 and beyond, focusing on expanding its geographic footprint and enhancing product capabilities [10] Other Important Information - The company launched a new e-commerce platform designed specifically for food service customers, enhancing its distribution capabilities [8] - The strategic facility enhancement initiatives are on track, with renovations at the Charlotte distribution center expected to be completed by the end of Q2 2025 [9] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Net revenue increased by 0.9% year over year to $298.4 million from $295.7 million in the prior year quarter [11] - Adjusted EBITDA rose by 12.3% year over year to $9.8 million, up from $8.7 million in the prior year quarter [14] - Gross profit increased by 1.1% to $51 million compared to $50.4 million in the same period in 2024 [11] - Operating income improved to $1.2 million from an operating loss of $0.1 million in the prior year quarter [13] - Net loss increased to $1.5 million from a net loss of $0.6 million in the prior year quarter, primarily due to unfavorable changes in interest rate swaps [13] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in the commodity, meat, poultry, and seafood categories [11] - Distribution, selling, and administrative expenses decreased by $0.7 million to $49.7 million due to cost optimization efforts [12] Market Data and Key Metrics Changes - The industry continues to face macro headwinds, particularly due to new tariff policies and supply chain disruptions [6] - The company is actively diversifying its supplier base and exploring alternative sourcing strategies to mitigate these challenges [6] Company Strategy and Development Direction - The company is focused on executing comprehensive transformation initiatives, with 2025 being a year of strategic investment [15] - Investments in digital infrastructure and operations are aimed at establishing a strong foundation for future growth [15] - The company aims to leverage its position as a leading nationwide Asian specialty distributor to capitalize on the growing demand for authentic Asian cuisine [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and long-term plans despite short-term uncertainties [6][15] - The successful implementation of a new ERP application is expected to enhance efficiency and decision-making across operations [7] - The company remains disciplined but optimistic about M&A opportunities in 2025 and beyond [9] Other Important Information - The company finalized a comprehensive plan to reduce cash distribution, selling, and administrative expenses by 3% to 5% by the end of 2025 while preserving core growth initiatives [12] - Strategic facility enhancements are underway, with renovations at the Charlotte distribution center expected to be completed by the end of Q2 2025 [8] Q&A Session Summary - No specific questions and answers were provided in the content.