HF Foods Bundle
Who Really Owns HF Foods Company?
Unraveling the ownership of HF Foods Company is key to understanding its trajectory in the competitive food distribution landscape. From its humble beginnings as a family-owned business to its current status as a publicly traded entity, the HF Foods SWOT Analysis reveals critical insights. This transition significantly reshaped its shareholder base and strategic direction.
HF Foods' evolution from a private entity to a publicly listed company, following a reverse merger in August 2018, fundamentally altered its ownership structure. Understanding the dynamics of HF Foods ownership—from its founders to institutional investors—is crucial for anyone tracking HF Foods stock or assessing its long-term potential. This analysis will explore the key players and their influence on the company's future, including details on HF Foods investors and HF Foods financials.
Who Founded HF Foods?
The story of HF Foods Company, now known as HF Foods Group Inc., began in 1997. It was founded by Zhou Min Ni and his spouse in Kernersville, North Carolina. The company initially operated as HF Group Holding Corp. before its transformation.
Zhou Min Ni served as the CEO from the company's inception until August 2018. Before going public, the primary ownership of HF Foods was held by Zhou Min Ni and his family. Jonathan Ni, Zhou Min Ni's son, joined as a consultant in 2003 and later became the CFO in 2015, assisting in the financial restructuring before the company's public listing.
The early years of HF Foods, operating as a privately held S corporation until the end of 2017, saw significant expansion. Han Feng, part of the original HF Group, grew to serve over 3,200 Chinese restaurants across 10 states, supported by three distribution centers. In preparation for becoming a public company, Han Feng converted to a privately held C corporation on January 1, 2018.
Early Ownership Structure
While the exact initial equity distribution among the founders and early backers is not publicly detailed, Zhou Min Ni and his family were the primary owners. Later legal proceedings shed light on potential internal disputes regarding the distribution of company funds.
- A settlement agreement from May 5, 2023, revealed alleged payments of company funds to entities owned by Zhou Min Ni and his niece, based on monthly invoices for 'service charges'.
- There were also alleged cash 'advances' provided to an entity owned by Raymond Ni, the son of Zhou Min Ni and Chan Sin Wong.
- These details, found in SEC filings, highlight the focus on serving the Asian restaurant market, but also the scrutiny of the founding team's control and the distribution of benefits.
- For further insights into the company's trajectory, you can explore the Growth Strategy of HF Foods.
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How Has HF Foods’s Ownership Changed Over Time?
The ownership structure of HF Foods Company, also known as HF Foods Group Inc., has evolved significantly. In August 2018, HF Group Holding Corp. became a publicly listed company through a reverse merger with Atlantic Acquisition Corp., a Special Purpose Acquisition Company (SPAC). This move provided HF Foods access to public markets. The company then further expanded its reach in November 2019 by merging with B&R Global Holdings Inc., making B&R Global a wholly-owned subsidiary. This strategic decision aimed to improve operational efficiency and expand market presence, particularly on the West Coast, complementing the existing East Coast operations.
This transformation into a public entity and subsequent mergers have broadened the shareholder base, influencing the company's strategic focus on growth and operational changes. The shift to public ownership has allowed for greater visibility and access to capital, which is crucial for driving expansion and achieving long-term goals within the competitive food distribution market. The company's journey reflects a strategic adaptation to leverage market opportunities and enhance its operational capabilities.
| Key Event | Date | Impact |
|---|---|---|
| Reverse Merger with Atlantic Acquisition Corp. | August 2018 | HF Foods became a publicly listed company. |
| Merger with B&R Global Holdings Inc. | November 2019 | B&R Global became a wholly-owned subsidiary, expanding market reach. |
| Public Trading on Nasdaq Capital Market | Ongoing | Attracts institutional and individual investors. |
As of June 4, 2025, institutional investors held a significant portion of HF Foods stock. BlackRock, Inc. was a major institutional holder with 2,535,589 shares as of March 31, 2025, followed by Vanguard Group Inc. with 2,079,849 shares. Other key institutional investors include Zhang Financial LLC, Geode Capital Management, LLC, and State Street Corp. A total of 166 institutional owners and shareholders have filed 13D/G or 13F forms with the SEC, holding a total of 12,549,658 shares. Insider holdings increased from 7.13% to 7.47% in May 2025. Notable individual stakeholders include Raymond Ni, who held 10.6% of the company's shares, totaling 5,591,553 shares, as of April 7, 2025. Xiao Mou Zhang (Peter Zhang), who served as Co-Chief Executive Officer following the B&R Global merger and later as sole CEO, also holds a significant stake and has been a director since November 2019. For more insights into the competitive environment, consider reviewing the Competitors Landscape of HF Foods.
HF Foods Ownership Insights
HF Foods' ownership structure is a mix of institutional and individual investors, shaped by key events like the reverse merger and subsequent acquisitions.
- BlackRock and Vanguard are major institutional holders.
- Raymond Ni and Xiao Mou Zhang are significant individual stakeholders.
- The company's strategic focus is influenced by its diverse shareholder base.
- HF Foods stock is traded on the Nasdaq Capital Market.
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Who Sits on HF Foods’s Board?
As of June 2025, the board of directors of HF Foods Company includes key figures steering the company. Felix Lin holds the positions of Chief Executive Officer, President, and Board Member. Maria Ross serves as the Lead Independent Director, effective from June 4, 2025. Dennis Lam was appointed as an independent director on June 4, 2025, filling a vacancy and will serve as Chair of the Audit Committee and a member of the Compensation and Nominating and Governance Committees. Other members include Richard Diaz, an Independent Director Nominee, Xiao Mou Zhang, and Yujie Wang, another Independent Director.
Recent changes to the board saw Lisa Lim and Charlotte Westfall resign effective June 2, 2025, and they did not stand for re-election at the annual meeting on June 3, 2025. The board is actively searching for a new independent director to fill the remaining vacancy. The Compensation Committee approved changes to the compensation of independent directors, effective July 1, 2025, increasing the annual cash retainer from $30,000 to $40,000 and the annual equity grant from a fair value of $30,000 to $40,000.
| Board Member | Title | Role |
|---|---|---|
| Felix Lin | CEO, President | Board Member |
| Maria Ross | Lead Independent Director | |
| Dennis Lam | Independent Director | Chair of Audit Committee, Member of Compensation and Nominating and Governance Committees |
| Richard Diaz | Independent Director Nominee | |
| Xiao Mou Zhang | Director | |
| Yujie Wang | Independent Director |
The voting structure of HF Foods Group Inc. generally follows a one-share-one-vote principle, typical for companies listed on Nasdaq. The presence of independent directors in key committee roles suggests a focus on good corporate governance. Past actions, such as the internal investigation and recommendations by a Special Investigation Committee (SIC), reflect a commitment to improving compliance and decision-making processes. For further insights into the business, consider exploring the Revenue Streams & Business Model of HF Foods.
Key Takeaways on HF Foods Board and Voting
The board is composed of a mix of executive and independent directors, with recent changes reflecting a focus on governance. Independent directors play crucial roles in committees, indicating a commitment to oversight. The voting structure is standard, with a one-share-one-vote system.
- Felix Lin is the CEO and President.
- Maria Ross is the Lead Independent Director.
- Dennis Lam chairs the Audit Committee.
- Independent directors' compensation has been increased.
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What Recent Changes Have Shaped HF Foods’s Ownership Landscape?
Over the past few years, HF Foods has seen notable shifts in its ownership and leadership. Felix Lin was appointed as the permanent Chief Executive Officer on January 1, 2025, after serving as Interim CEO since October 2024. This followed the termination of Xiao Mou (Peter) Zhang as CEO on October 24, 2024. These moves are part of a broader strategy to stabilize the company and drive its transformation plan, which includes enhancing offerings to Asian restaurants and expanding into specialty grocery and e-commerce.
Institutional ownership of HF Foods has remained relatively stable, at 18.84% as of May 2025. However, there have been shifts within institutional holdings. For instance, in Q1 2025, SEGALL BRYANT & HAMILL, LLC added 139,030 shares, while BlackRock, Inc. removed 40,705 shares. JPMorgan Chase & Co. significantly increased its position in Q4 2024 by 100.2%, adding 75,319 shares. In Q1 2025, 35 institutional investors added shares to their portfolios, while 16 decreased their positions. Insider holdings saw a slight increase from 7.13% to 7.47% in May 2025.
| Metric | Value | Date |
|---|---|---|
| Market Cap | $182 million | June 13, 2025 |
| Trailing 12-Month Revenue | $1.2 billion | March 31, 2025 |
| Institutional Ownership | 18.84% | May 2025 |
The company also secured a revolving credit agreement of up to $125 million in February 2025, which provides enhanced financial flexibility. As of March 31, 2025, HF Foods reported a trailing 12-month revenue of $1.2 billion, and its market cap was $182 million as of June 13, 2025. Analysts anticipate the company to return to profitability in 2025. These developments reflect industry trends toward consolidation and operational efficiency in the food distribution sector, influencing HF Foods' financials and the interests of HF Foods investors.
Ownership Stability
Institutional ownership has remained relatively stable, with some shifts in holdings among investors. This includes changes in the number of shares held by major institutions.
Leadership Transition
The appointment of Felix Lin as CEO marks a key move for stability and strategic direction. This follows a period of interim leadership and aims to drive growth.
Financial Strategy
Securing a $125 million revolving credit agreement enhances financial flexibility. This supports the company's growth strategy and operational efficiency.
Market Outlook
Analysts predict a return to profitability in 2025. The company's focus is on expanding into high-growth channels and improving its market position.
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