HF Foods Group Announces the Appointment of BDO as Independent Accountant

Rhea-AI Summary

HF Foods Group Inc. (NASDAQ: HFFG) appointed BDO USA, LLP as its new independent registered public accounting firm effective September 8, 2021, following a competitive selection process by the Audit Committee. This change aims to enhance financial reporting standards, internal controls, and corporate governance. The Company terminated its previous accountant, Friedman LLP. Felix Lin, Chairman of the Audit Committee, expressed enthusiasm about working with BDO to improve the Company’s financial practices.

Positive

• Appointment of BDO USA, LLP could enhance financial reporting and governance.
• Engagement of a top-tier accounting firm may improve investor confidence.

Negative

• Termination of Friedman LLP raises questions about continuity and potential disruption.
• Change in auditors may highlight prior deficiencies in financial oversight.

CITY OF INDUSTRY, Calif., Sept. 10, 2021 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian/Chinese restaurants across the Southeast, Pacific and Mountain West regions of the United States (“HF Group” or the “Company”), announces the appointment of BDO USA, LLP (“BDO”) as the Company’s independently registered public accounting firm as of September 8, 2021.

As part of the Company’s ongoing effort to improve and raise the standard of its financial reporting, internal controls and corporate governance, the Audit Committee (the “Committee”) of the Board of Directors of HF Group conducted a competitive selection process to determine the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021. As a result, the Committee selected and approved the appointment of BDO USA, LLP (“BDO”) as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2021, and the Company formally engaged BDO on September 8, 2021. The Company terminated the engagement of its former independent registered public accounting firm, Friedman LLP (“Friedman”) as of September 8, 2021.

Mr. Felix Lin, Chairman of the Audit Committee of the Board of Directors said: “On behalf of the Company, we are excited to engage BDO, an internationally renowned and top tier Public Accounting firm as our public accountants. I look forward to working with BDO to review and improve our financial reporting standard, internal controls and governance processes.”

About HF Foods Group Inc.
HF Foods Group Inc., headquartered in City of Industry, California, is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian/Chinese restaurants and other foodservice customers throughout the Southeast, Pacific and Mountain West regions of the United States. With 14 distribution centers along the U.S. eastern and western seaboards, HF Foods aims to supply the increasing demand for Asian American restaurant cuisine. With an in-house proprietary ordering and inventory control network, more than 10,000 established customers in 21 states, and strong relations with growers and suppliers of food products in the US and China, HF Foods Group is able to offer fresh, high-quality specialty restaurant foods and supplies at economical prices to its large and growing base of customers. For more information, please visit www.hffoodsgroup.com.

Forward-Looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as “anticipates,” “believes,” “could,” “expects,” “intends,” “may,” “should” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, unfavorable macroeconomic conditions in the United States, competition in the food service distribution industry, particularly the entry of new competitors into the Chinese/Asian restaurant market niche, increases in fuel costs or commodity prices, disruption of relationships with vendors and increases in product prices, U.S. government tariffs on products imported into the United States, particularly from China, changes in consumer eating and dining out habits, disruption of relationships with or loss of customers, our ability to execute our acquisition strategy, availability of financing to execute our acquisition strategy, failure to retain our senior management and other key personnel, our ability to attract, train and retain employees, changes in and enforcement of immigration laws, failure to comply with various federal, state and local rules and regulations regarding food safety, sanitation, transportation, minimum wage, overtime and other health and safety laws, product recalls, voluntary recalls or withdrawals if any of the products we distribute are alleged to have caused illness, been mislabeled, misbranded or adulterated or to otherwise have violated applicable government regulations, failure to protect our intellectual property rights, any cyber security incident, other technology disruption, or delay in implementing our information technology systems, statements of assumption underlying any of the foregoing, and other factors disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.

Investor Relations Contact:
Gateway Investor Relations
Cody Slach
Tel 1-949-574-3860
HFFG@gatewayir.com

FAQ

Why did HF Foods Group appoint BDO USA, LLP as its new accounting firm?

HF Foods Group appointed BDO USA, LLP to improve its financial reporting standards, internal controls, and corporate governance.

What happened to HF Foods Group's previous accounting firm?

HF Foods Group terminated its engagement with Friedman LLP on September 8, 2021, the same day it engaged BDO USA, LLP.

What is the expected impact of BDO's appointment on HF Foods Group?

The appointment of BDO may enhance financial reporting and governance, potentially boosting investor confidence.

When was BDO USA, LLP officially engaged by HF Foods Group?

BDO USA, LLP was officially engaged by HF Foods Group on September 8, 2021.