• RMB 5.5 billion(~ EUR 700 million) transaction saw DPDHL Group and SF Holding enter a10-year strategic partnership to grow supply chain operations in China
• Yin Zou named CEOof the co-branded business to accelerate expansion ofcustomer base

SHANGHAI, CHINA - Media OutReach - February 18, 2019 - DeutschePost DHL Group ("DPDHL Group"), the world's leading mail and logistics company,has concluded the landmark deal to transfer its supply chain operations inMainland China, Hong Kong and Macau, herein after referred to as "China" to SFHolding ("SF"), a leading premium logistics service provider in the country.The transaction involves the supply chain business, and has no bearing on DPDHLGroup's business activities in international express, freight transport ande-commerce logistics solutions in China.

As part of this transaction, DPDHL Group receivedRMB 5.5 billion (~ EUR 700 million), and will continue to receive revenue-basedpartnership fees for 10 years while DPDHL Group provides the co-brandedbusiness with trademark license, customer referral, employee training, bestpractice sharing and other areas of support. The co-branded business -- SF DHLSupply Chain China -- was announced at the deal closing, and Yin Zou (formerCEO, Greater China of DHL Supply Chain) was appointed CEO of the organization,and along with his existing management team, will continue leading thebusiness. Headquartered in Shanghai, SF DHL Supply Chain China will harnessDPDHL Group's best-in-class supply chain services, management expertise,transportation and warehousing technology, combined with SF's extensivedomestic infrastructure, distribution network and broad base of localcustomers, to drive its growth trajectory.

"Thissupply chain alliance with SF is a strategic milestone for DPDHL Group. Withour joint capabilities we will create a unique platform to meet the need for ahigh quality end-to-end supply chain provider in China. SF's local marketexpertise combined with DPDHL Group's global operations standards and networksupport provide a solid foundation for us to continue exploring furtheropportunities in China in the coming years. China is on course for sustainablegrowth[1], and SF DHL Supply Chain China is well-placed to serve the increasingdemands for world-class supply chain services. The agreement, therefore, is thecornerstone for DPDHL Group to gain unprecedented access to China's immensedomestic market," said Frank Appel, CEO Deutsche Post DHL Group.

"SF's vision is to become a trustworthylogistics-based business partner with comprehensive solutions for ourcustomers, and our partnership with DPDHL, the leading logistics company in theworld, helps us move solidly ahead with this vision. We are expanding ourdomestic footprint through SF DHL Supply Chain China to cater to our customersacross a multitude of industries. This deal with DPDHL Group, a world-classorganization, also helps us to better serve multi-national clients," said DickWong, Chairman, SF Holding.

SF DHL Supply Chain China will have access toDPDHL Group's global expertise, network, operations standards and innovations,across industries from technology, healthcare, retail and automotive toe-commerce. Leveraging SF's market position in China, SF DHL Supply Chain Chinais setting its sights on expanding the service portfolio to SF's customerswhile winning new customers with its enhanced product and service offerings.

Added Yin Zou, CEO, SF DHL Supply Chain China,"This landmark deal gives SF DHL Supply Chain China unparalleled advantage totransform the supply chain industry in China. My team and I are looking forwardto amalgamating the best of what DPDHL Group and SF stand for, and convertingthese into tangible value for existing and new customers. The strong commitmentfrom DPDHL Group and SF has led to the swift and smooth completion of thetransaction, and it is full steam ahead for us to deliver top quality turnkeysupply chain solutions to enterprises in China."

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SF DHL Supply Chain China is a leading supply chain provider in MainlandChina, Hong Kong and Macau. It amalgamates world-class supply chain expertisefrom Deutsche Post DHL Group and extensive domestic infrastructure from SFHolding to positively disrupt the supply chain industry in Mainland China, HongKong and Macau. Headquartered in Shanghai, SF DHL Supply Chain China employsmore than 5,000 people to deliver top quality turnkey supply chain solutions toenterprises in Mainland China, Hong Kong and Macau.

Deutsche Post DHL Group is the world's leading mail and logisticscompany. The Group connects people and markets and is an enabler of globaltrade. It aspires to be the first choice for customers, employees and investorsworldwide. The Group contributes to the world through responsible businesspractices, corporate citizenship and environmental activities. By the year2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.

DeutschePost DHL Group is home to two strong brands: Deutsche Post is Europe's leadingpostal service provider. DHL offers a comprehensive range of internationalexpress, freight transport, and supply chain management services, as well ase-commerce logistics solutions. Deutsche Post DHL Group employs approximately520,000 people in over 220 countries and territories worldwide. The Groupgenerated revenues of more than 60 billion Euros in 2017.

Die Post für Deutschland. Thelogistics company for the world.

SFHolding is a leading integrated logistics service provider inChina. SF provides its customers with integrated logistics services fromtransportation to warehousing management, from sales forecasting and dataanalytics to settlement and cash management, as well as supply chain managementservices.

SF Holding is also a smartlogistics operator with network scale advantages. SF Holding has a vastlogistics network both at home and abroad, including an "aviationnetwork" consisting of all-cargo aircraft, commercial flight, and drones;a "ground network" consisting of service points, transit anddistribution service points, land transportation networks, customer hotlinenetworks, and last mile networks; and an "information network"consisting of various AI automation devices, AI recognition technology forvoice and machine graphics, smart decision-making, SF Maps, big dataecosystems, digital warehouses, and smart packaging. The three networks areintegrated into one "aviation + ground + information" network. This directlyoperated network has domestic and overseas coverage and is a comprehensivelogistics network system and the most unique resources in the industrydomestically.