HONG KONG, CHINA - Media OutReach - 28 February 2019 - KerryLogistics Network Limited ('Kerry Logistics'; Stock Code 0636.HK) strives to reinforceits commitment to technological innovation, as demonstrated by its firstHackathon organised in February 2019, when eight teams competed at the two-dayevent. Combining robotics, machine learning, and artificial intelligence, theteams devised applications for autonomous drones to enhance operationalefficiency and accuracy.

Thewinning team was commended for its outstanding ability to bridge the gapbetween innovative ideas and practical use. The competitors incorporatedinnovative technological solutions including autonomous drone navigatingand computer vision in their bid to realise the theme of "DroneWarehouse Stocktaking". Proposals to adopt advanced technologies such as RadioFrequency IDentification (RFID) and Light Detection and Ranging (LIDAR) havealso been presented.

Theevent was a testimony of Kerry Logistics' dedication to motivating innovationand harnessing creativity as it stepped up to the demands of the digital age.Kerry Logistics has long embraced automation and robotics in its operation andhas recently adopted blockchain technology and Internet of Things solutions tooptimise supply chain visibility. Drone Warehouse is one of the six majoringredients in Kerry Logistics' Warehouse 4.0 initiative for automation, whichis the key to improve efficiency amidst increasing labour cost, as well as toenhance the capability to replicate the service level in Hong Kong globally tofulfil customers' ever-changing demands and expectations.

WilsonLee, Group Director of Information Technology, Kerry Logistics, said,"Innovation is crucial to the logistics industry, which is all-encompassing andessential to a wide range of business sectors from e-commerce and fashion tomanufacturing and high-tech. The utilisation of advanced technology in ouroperations helps to foster business sustainability and drive long-term growth.As we have witnessed at the Hackathon, the contestants have demonstrated theirattitude of thinking outside the box, which is what innovation is all about.New perspectives and imagination will enable the existing operational model toevolve and improve, allowing us to maintain our competitive edge in valuecreation and disrupt the market rather than being disrupted."

KerryLogistics sees the Hackathon as a major platform to explore ideas, as well as away to connect to the younger generations with limitless creativity, and willcontinue to maintain such a platform internally and externally to push forwardthe innovative mindset in all Kerry Logistics associates.

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.