Kerry Logistics Reinforces its Commitment to Technological Innovation Through Harnessing Creativity at its First Hackathon

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

The winning team was commended for its outstanding ability to bridge the gap between innovative ideas and practical use. The competitors incorporated innovative technological solutions including autonomous drone navigating and computer vision in their bid to realise the theme of "Drone Warehouse Stocktaking". Proposals to adopt advanced technologies such as Radio Frequency IDentification (RFID) and Light Detection and Ranging (LIDAR) have also been presented.

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

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

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

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 53 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.