Kerry Logistics Expands Food Cold Chain Business in China

HONG KONG, CHINA - Media OutReach - 7 May 2019 - Kerry Logistics Network Limited ('Kerry Logistics'; Stock Code 0636.HK) has expanded its food-related cold chain capability in Mainland China through the establishment of Kerry Cold Chain Solution Ltd ('Kerry Cold Chain'), to tap into the fast-growing domestic market of niche food products.

Kerry Cold Chain is a joint venture company formed with Shanghai Zhizhen Logistics Co Ltd ('Zhizhen Logistics') in which Kerry Logistics holds the majority interest. It provides comprehensive integrated cold chain logistics solutions from upstream to downstream. Using self-owned cold chain facilities and partnering with local expertise, Kerry Cold Chain will handle a wide range of food products, from raw ingredients to dairy product additives.

Edwardo Erni, Managing Director - China and North Asia of Kerry Logistics, said, "The market for food-related cold chain logistics in Mainland China is immense with enormous growth potential. There is also ample room for technological growth to reach international standards. Intending to fill a gap in the market, we welcome the collaboration with Zhizhen Logistics, which marks an important strategic step for Kerry Logistics to extend its footprint in the domestic cold chain logistics market, enhancing our service offerings and competitiveness."

Kerry Cold Chain currently operates more than 1 million sq ft of ambient and cold chain facilities in China, including a temperature-controlled facility of over 50,000 sq ft in Shanghai featuring automated storage and retrieval systems.

Founded in 2008, Zhizhen Logistics serves the logistics needs of both domestic and international customers from locations across China including Beijing, Tianjin, Wuhan, Guangzhou, and Shenzhen. It commands a 90% market share for imported food essences in the Shanghai region.

With a wealth of experience in cold chain logistics, Kerry Logistics offers seamless F&B solutions with complete cold chain integrity to food chain stores and restaurants in Hong Kong as well as hypermarkets and frozen food retailers in Taiwan. The Group also runs cold chain facilities of 70,000 sq ft in Oceania, serving supermarket chains, convenience stores, independent retailers, and food importers.

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

Kerry Logistics is an Asia-based, global 3PL with the strongest network in Asia. Its core competency is providing highly customised solutions to multinational corporations and international brands to enhance their supply chain efficiency, reduce overall costs, and improve response time to market. Kerry Logistics has a network covering 53 countries and territories, and is managing 60 million sq ft of land and logistics facilities worldwide, providing customers with high reliability and flexibility to support their expansion and long-term growth. Kerry Logistics Network Limited is listed on the Main Board of the Hong Kong Stock Exchange and is a selected Member of the Hang Seng Corporate Sustainability Index Series 2017-2018.