Kerry Logistics Network Completes Subsidiary Spin-off, Kerry Express Thailand Debuts on the Stock Exchange of Thailand

HONG KONG SAR – Media OutReach – 24 December 2020 – Kerry
Logistics Network Limited (‘Kerry Logistics Network’; Stock Code 0636.HK) is pleased to announce that it has completed the
spin-off of its subsidiary, Kerry Express Thailand (‘KETH’; Stock Code ‘KEX’),
which commenced trading on the Stock Exchange of Thailand (‘SET’) today. KETH remains
a subsidiary of Kerry Logistics Network after the spin-off.

The
price of KETH’s initial public offering of 300 million shares was fixed
at the upper limit of THB 28 per share. KETH had received very strong investor
interest with more than 23 times oversubscription from institutional investors
and approximately 10 times oversubscription from cornerstone investors.

The
proceeds from the offering are intended to be used for KETH’s express delivery
network expansion and investments in its transportation network to enhance its
operational efficiency, in the development of IT systems, the repayment of
existing indebtedness to banks and as working capital for business operations.

William Ma, Group Managing Director of Kerry Logistics Network, said, “We
are very proud of this successful spin-off and listing, and the enthusiastic
reception from investors. KETH is now a true Thai company that belongs to the
Thai people to serve the Thai [people/population]. Kerry Logistics Network has
nurtured KETH’s growth through the years and has been encouraged by how it has
prospered. By now, Kerry Express Thailand has become a byword for excellence in
delivery service in Thailand. With the leadership of an outstanding management
team and capital from the listing, we are confident that KETH’s future triumphs
will reach new heights and be the standard to which all are measured.”

Alex
Ng, Chief Executive Officer of Kerry Express Thailand, said, “KETH’s listing on
the SET is an important milestone for the company and the culmination of the
KETH team’s hard work. We are truly grateful for the support of our investors,
which in itself is a testament to KETH’s current achievements and brilliant
prospects. The proceeds from the offering will ensure KETH’s continual growth
and thriving future as we further strengthen our infrastructure and enhance our
operations to provide our customers the best service to our ability and create
value for our stakeholders.”

Since
its establishment in 2006, KETH has become an indispensable part of Thai life.
In 2019, KETH delivered an average of 1.1 million parcels per business day to
offices, warehouses, retail shops and households in Thailand. It was recognised
as Thailand’s Most Admired Brand 2020 by marketing magazine Brand Age. During
the COVID-19 pandemic, KETH was deemed one of the essential services by the
Thai government, exempt from mandatory closure, and played a key role in
supporting businesses and consumers in Thailand in these unprecedented times.