HF Foods Group Inc. 10-K

ITEM 2. PROPERTIES We operate sixteen distribution centers with a total of approximately 1.4 million square feet of warehouse space, including approximately 404,000 square feet of cold storage, for distribution, warehousing inventory, service and administrative functions. We own approximately 0.9 million square feet of our distribution centers (or 67% of the total square feet), and the remainder (or 33% of the total square feet) is occupied under leasing arrangements. The following table sets forth the approximate aggregate square footage by state for these distribution facilities as of December 31, 2025. Location Number of Facilities Total Square Feet Arizona 1 68,000 California 4 355,000 Colorado 1 56,000 Florida 1 136,000 Georgia (a) 1 182,000 Illinois 1 140,000 North Carolina 1 172,000 Texas 2 60,000 Utah 2 93,000 Virginia 1 44,000 Washington 1 70,000 Total 16 1,376,000 _______________ (a) These figures do not include one facility located in Atlanta, GA that was being vacated due to the transition to a new location. The lease on the vacated facility expired as of December 31, 2025. We also operate a 50,000 square foot specialty oil manufacturing and packaging facility in Kansas and four cross-docks which are located in California, Nevada, Ohio and Oregon. Additionally, we own a 118,000 square foot distribution facility in North Carolina which we are preparing for operations to commence in 2026. We lease our corporate headquarters located in Las Vegas, Nevada, consisting of approximately 13,000 square feet with a term of 6.5 years that began on March 17, 2021. We also lease office space for a corporate location in Los Angeles, California. 20 Opening of a State-of-the-Art Distribution Warehouse in Powder Springs, GA On December 18, 2025, the Company officially opened its newest 182,000 square foot distribution center located outside Atlanta, in Powder Springs, Georgia. This brand-new facility includes warehouse, freezer, cooler, and office space and provides significant opportunities for expanding our existing operations in Atlanta and the surrounding cities and states. The Company plans to incorporate automated material handling and warehouse management technologies at the facility to support operating efficiency. The new distribution center will continue to service over 1,000 customers from HF Food’s previous Atlanta location and is now open to deliver more business throughout Georgia, Alabama, Mississippi, and Tennessee. The distribution center is located at 4795 Innovative Highway, Powder Springs, GA 30127, and currently employs over 50 individuals with plans to expand operations throughout 2026. We believe that, in the aggregate, our real estate is suitable and adequate to serve the needs of our business.