70 Years of Excellence: Driving our Community into a Sustainable Future 卓越七十載：引領社區邁向可持續未來

Evolving with the times, Expanding New Territories Entering the 21st century, Zung Fu Group’s progress became steadier and more rapid. In 2002 and 2003, the Group successively acquired two major international car brands, smart from Germany and Hyundai from South Korea, opening up entirely new markets. When the first- generation Tucson was launched, its competitive pricing attracted many customers who queued for test drives, creating a buzz. Later, the launch of the H1 passenger van achieved the impressive feat of selling over a thousand units in a short period, shaking up the commercial vehicle market at the time. In 2014, Zung Fu Group took on the distributorship for Foton, a mainland Chinese commercial vehicle brand. This decision was prompted by the government’s implementation of commercial vehicle emission regulations on 1 st February 2014, which set a 15-year retirement period for all commercial vehicles, including trucks, non-franchised buses and minibuses. This made operators more cautious about investing heavily in new vehicles, prompting a turn towards domestically produced commercial vehicles that offered comparable quality and durability at a much lower price point. Responding to this market demand, Zung Fu Group chose to partner with BAIC Group’s Foton. Foton products have consistently used American Cummins engines and German ZF transmissions, with quality and performance comparable to Japanese brands, thus earning the trust of the industry. As awareness towards sustainability grew, major car manufacturers began to develop new-energy vehicle (NEV) models as alternatives, and EVs were seen an integral part of the future of urban mobility. Anticipating this trend, Mercedes-Benz debuted the Generation EQ concept car in 2016, marking its entry into the EV market. As a committed partner of Mercedes-Benz, Zung Fu swiftly introduced the brand’s first all-electric vehicle the EQC — to the local market in October 2019. The EQC, combining luxury, safety and comfort, boasted an impressive 480km range, which was remarkable at the time. To support the development of all-electric vehicles, Zung Fu established a dedicated EQ product team, website and WhatsApp communication group. Beyond providing round-the-clock consultation services, these channels also enabled EQ owners to book test drives and receive the latest updates about Mercedes-Benz electric vehicles. Zung Fu regularly conducts workshops for the public and vehicle owners to explain the operational differences between traditional internal combustion engine (ICE) and all-electric vehicles. We also provide professional solutions for those looking to install home charging boxes, helping vehicle owners adapt more quickly to the all-electric era. Following the launch of EQC, many Hong Kong residents became greatly interested in Mercedes-Benz’s all- electric vehicles. The government also launched the first phase of the “One-for-one Replacement” scheme as well as the “Hong Kong Roadmap on Popularisation of Electric Vehicles” in 2021. According to the roadmap, the registration of new fuel-powered private cars (including hybrid vehicles) would be ceased in or before 2035, further intensifying the EV trend. 18