HF Foods Group Inc.

is now my pleasure to introduce your host, John DiDomenico, Vice President, Investor Relations. Please go ahead.

Hello, everyone. Welcome to HF Foods Group's second quarter 2025 earnings conference call. Joining me on today's call are Felix Lin, the company's President and Chief Executive Officer, and Cindy Yao, the company's Chief Financial Officer. Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on management's current beliefs and expectations about future events, which are subject to several known and unknown risks and uncertainties. If you refer to HF Foods' earnings release, as well as the company's most recent SEC filings, you will see a discussion of factors that could cause the company's actual results to differ materially from those expressed or implied by these forward-looking statements. The company undertakes no obligation to update or revise these forward-looking statements in the future. In these remarks, the company will make several references to non-GAAP financial measures, including adjusted EBITDA. We believe that these measures provide investors with a useful perspective on the underlying growth trends of the business and have included in the earnings release a full reconciliation of non-GAAP financial measures to the most comparable GAAP measures. Now, I will turn the call over to Felix.

Hello, everyone. Welcome to HF Foods' second quarter 2025 earnings call. I'll provide a business update, and Cindy will speak to our second quarter financial results. Then we will open up the line for Q&A. I am pleased to announce that we continue our momentum in the second quarter of 2025 and are reporting the highest net revenue and gross profit ever recorded at HF. Net revenue increased 4.1% year-over-year to $314.9 million, and gross profit increased 5.1% to $55.1 million. Also, notably, adjusted EBITDA increased 31.1% year-over-year to $13.8 million. Our results reflect our continued disciplined execution against our strategic initiatives, even amid a dynamic and uncertain macro environment characterized by tears, persistent inflationary pressures, and shifts in consumer spending behaviors. These results are a testament to the resilience of our business model and the strength of our operational focus. Our results have been impressive despite the current business environment including the implications of tariffs and the impact of immigration concerns creating continued economic headwinds. In response to the evolving tariff landscape, we have been actively diversifying our supplier base and exploring alternative sourcing strategies to ensure continuity and cost effectiveness in our supply chain. Our strategic inventory management and proactive price increases allow us to effectively navigate the changing environment. delivering solid net revenue growth and significant adjusted EBITDA growth. We're encouraged by our strong performance in the second quarter and the solid foundation we built. Consistent with what the broader industry has been experiencing, we have seen lower exit velocity and foot traffic toward the end of Q2 and continue into the beginning of Q3 as consumers pull back from spending amid economic uncertainty. There will also be natural seasonality pullback associated with Q3 as compared to Q2. That said, we remain extremely confident in our long-term growth strategy. Hence, we are committed to our capital investment and growing our capacity. We aim to continue the momentum we build for the rest of the year. As discussed on our last call, our digital transformation initiative reached a major milestone on May 1st with successful deployment of a new modern ERP application across our entire network. All of our locations are now operating on a single unified ERP platform that will help us to achieve breakthrough levels of efficiency, visibility, and control across our operations, unlocking the full potential of our centralized purchasing capabilities over time. I am pleased to report that the ERP system has been running as planned and without issue. The next phase of this program is focused on rationalizing our sales force. With our operations unified on a single system, we now plan to restructure our sales operation, which will reduce costs over time and further strengthen our competitive positioning. Our strategic facility enhancement initiatives continue to advance across multiple regions. We're nearing completion of renovations at our Charlotte Distribution Center and continue to make steady progress on our Atlanta State-to-Art Facility project, which we expect will create meaningful organic growth opportunities through expanded cross-sailing capabilities. The cold storage capacity expansion in Atlanta will double our capacity in the region and enable us to significantly increase frozen seafood sales to our existing customer base along the eastern seaboard, significantly expanding our southeast presence. These exciting infrastructure investments reflect our ongoing commitment to optimizing our distribution network and creating a stronger foundation for sustainable growth. M&A remains a core pillar of our growth strategy. HF Foods is the only scale food service provider in the Asian specialty market in the United States, and we believe we are the strategic acquirer of choice within our space. We are focused on expanding our geographic footprint in high potential markets, capturing operational synergies, broadening our customer base, and enhancing our product and service capabilities. We remain disciplined but optimistic about M&A opportunities in 2025 and beyond. We're actively evaluating opportunities in our proven ability to successfully navigate a terrier landscape, positions us uniquely to identify and execute attractive tuck-in acquisitions that will benefit from our operational expertise and skill. Now over to you, Cindy.