HONG KONG, CHINA - Media OutReach - 30 August2018 - Kerry Logistics Network Limited ('Kerry Logistics' or together with itssubsidiaries, the 'Group';Stock Code 0636.HK) today announced the Group's interim results for the six months ended 30 June 2018.

The Group's Financial Highlights

• Turnover increased by 27% to HK$17,461million (2017 1H: HK$13,705 million)
• Coreoperating profit increased by 19% to HK$1,216 million (2017 1H: HK$1,019 million)
• Core net profit increased by 22% to HK$700 million (2017 1H: HK$576million)
• Profit attributable to the Shareholders increased by 20% to HK$948million (2017 1H: HK$788 million)
• IntegratedLogistics ('IL') business recorded a segment profit of HK$1,107 million (2017 1H: HK$884 million) and International Freight Forwarding ('IFF') business recorded HK$235 million (2017 1H: HK$222 million),which represent an increase of 25% and 6%, respectively
• Interim dividend of 9 HK cents per Share, together with a specialdividend of 12 HK cents per Share, totalling 21 HK cents per Share, to bepayable on Friday, 5 October, 2018

William Ma, Group Managing Directorof Kerry Logistics, said,"Although the world economy experienced growth in 2018 1H, global demand hasbeen flat. Nevertheless, the China-US trade dispute has caused manufacturingcapacities to shift from Mainland China to other Asian countries, bringingabout an increase in shipping volume and production activities in Asia.Southeast Asia, in particular, has enjoyed the fastest growth in the region.Leveraging the strongest network in Asia and our diversified business portfolio,the Group achieved double digit growth in turnover, core operating profit, andcore net profit in 2018 1H."

ILDevelopment Accelerated

Having benefitted from the booming intra-Asia trade and e-commercebusiness, the IL division achieved a 25% rise in segment profit in 2018 1H. TheIL business in Hong Kong, Taiwan, and Asia as a whole is expected to remain amajor earnings driver for the rest of the year.

In Hong Kong, driven by stable growth in revenue from existing customersand new customer gains, the segment profit of the logistics business grew by71% in 2018 1H. The Group's business in Taiwan saw a profit recovery in 20181H, and the IL segment profit is expected to pick up in 2018 2H.

Sustained by strong intra-Asia trade and increasing shipping volumes in the region resulting from the China-UStrade tensions, the IL segment profit of Asia posted a 54% growth in 2018 1H.In Thailand, the Group's IL segment profit recorded an 84% growth riding on theflourishing e-commerce business. In July 2018, Kerry Express Thailand enteredinto a strategic partnership with VGI Global Media Public Company Limited('VGI'), the subsidiary of Bangkok Mass Transit System Public Company Limited,and becomes the only express logistics partner of VGI and Bangkok Mass TransitSystem. Furthermore, the seaport business in Thailand has shown encouragingimprovement following the berth extension at the Kerry Siam Seaport since March2018.

In Mainland China, rising labour costs, subpar performance of certaincustomers in the electronics sector, and the China-US trade conflict continuedto undermine the Group's business. Despite its decelerating pace of growth, thedecline in its profit eased in 2018 1H.

IFF Momentum Maintained

Supported by stable trade activities, the IFF division maintained growthin volume in 2018 1H, particularly in the North American and Indian Peninsularegions, resulting in a 6% increase in segment profit. Nevertheless, bothprofit and profit margin contributed by the IFF division have contracted as aresult of the drop in performance in Mainland China.

Adhering to its long-term IFF strategy to expand its coverage worldwide,the Group acquired the Johannesburg-based Shipping and Airfreight Services(Pty) Ltd in May 2018 to expand its service offerings in South Africa.

In June 2018, the Group strengthened its project logistics capabilitiesthrough the acquisition of a majority stake in the Milan-based Saga ItaliaS.p.A., which is specialised in project logistics, heavy lift services, andmaterial management. In the same month, the Group deepened its rail and roadfreight capabilities by launching new cross-border rail and trucking servicesfrom Mainland China through Kazakhstan to Caucasus and Turkey, so as to capturethe growing trades in new markets and Europe.

In July 2018, the Group's member company Globalink and Georgia's AnakliaCity JSC signed a memorandum of understanding to cooperate in the developmentof the Anaklia Deep Sea Port and Special Economic Zone in Georgia. The port,scheduled for opening in 2020, is expected to become one of the largest in theBlack Sea region.

The Group also established new subsidiary Kerry Freight Pakistan(Private) Limited to extend its foothold in Pakistan and leverage its firstmover advantage along the China-Pakistan Economic Corridor.

Asset Portfolio Broadened

Berth extension at the Kerry Siam Seaport in Thailand was completed in2018 Q1 with its total length increased to 2.8 km. Phase two of the KerryBangna Logistics Centre in Thailand was completed in 2018 Q1. Moreover, Phaseone of the inland ports in Mandalay, Myanmar was completed in 2018 Q2.Logistics facilities in Changsha and Wuhan, Mainland China, and Guanyin, Taiwanare under construction.

Asset Value Unleashed

While strategically strengthening its asset portfolio, the Group alsoconsidered different options to unleash the value of its current portfolio. InMainland China, the Group disposed of the underperforming Kerry Chengdu LogisticsCentre, in Shuangliu County, Chengdu in May 2018. In July 2018, the Groupdisposed of a 17% interest in Kerry Express Thailand to VGI.

George Yeo, Chairman of Kerry Logistics, concluded,"The ongoing trade spat between Mainland China and the US is reshaping traderoutes and global supply chains. While the trade volume between the twoeconomies is expected to reduce in the near future, certain markets in Asia arelikely to benefit conversely from the increased intra-Asia trade as customerslook for alternative supply sources beyond Mainland China and the US. Moreover,Asia has been experiencing the fastest trade volume growth for both imports andexports driven by rising domestic consumption and increased investment. Weexpect our Asian business to continue to grow and contribute to a major part ofthe Group's profit in three to five years' time. Leveraging our expandingglobal network and solid coverage particularly in South and Southeast Asia, weare optimistic to maintain growth in the remainder of the year throughexploiting new business opportunities and promising prospects in Asia and newmarkets along the Belt and Road trade paths."

About Kerry Logistics Network Limited (Stock Code 0636.HK)

Kerry Logistics is an Asia-based, global 3PLwith the strongest network in Asia. Its core competency is providing highlycustomised solutions to multinational corporations and international brands toenhance their supply chain efficiency, reduce overall costs and improveresponse time to market. Kerry Logistics has a network covering 53 countriesand territories, and is managing 53 million sq ft of land and logisticsfacilities worldwide, providing customers with high reliability and flexibilityto support their expansion and long-term growth. Kerry Logistics NetworkLimited is listed on the Main Board of the Hong Kong Stock Exchange and is aselected Member of the Hang Seng Corporate Sustainability Index Series 2017-2018.