Kerry Logistics Network : Announcement - Appointment of Independent Financial Adviser and Financial Adviser

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in the British Virgin Islands and continued into Bermuda as an exempted company with limited liability)

Stock Code 636

ANNOUNCEMENT

APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER AND

FINANCIAL ADVISER

Reference is made to the announcement jointly published by Kerry Logistics Network Limited (the "Company"), Kerry Properties Limited and Flourish Harmony Holdings Company Limited on 10 February 2021 in relation to the Partial Offer (the "Joint Announcement"). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Joint Announcement.

APPOINTMENT OF INDEPENDENT FINANCIAL ADVISER

This announcement is made pursuant to Rule 2.1 of The Hong Kong Code on Takeovers and Mergers (the "Takeovers Code").

The Board wishes to announce that Somerley Capital Limited, a corporation licensed to carry out Type 1 (dealing in securities) and Type 6 (advising on corporate finance) regulated activities under the SFO, has been appointed as the independent financial adviser of the Company (the "Independent Financial Adviser") to advise the Independent Board Committees in relation to the Partial Offer, the Option Offer and the Special Deal Agreements. Such appointment has been approved by the Code Independent Board Committee pursuant to Rule 2.1 of the Takeovers Code.

The letter of advice of the Independent Financial Adviser in respect of the Special Deal Agreements will be included in the Circular to be despatched to the Shareholders in due course. The letter of advice of the Independent Financial Adviser in respect of the Partial Offer and the Option Offer will be included in the Composite Document to be despatched to the Shareholders and the Optionholders and in compliance with the Takeovers Code.

APPOINTMENT OF FINANCIAL ADVISER

The Board also wishes to announce that the Company has appointed The Hongkong and Shanghai Banking Corporation Limited, which is a registered institution under the SFO, registered to carry out Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 5 (advising on futures contracts), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under the SFO, as the sole financial adviser of the Company to advise the Company on the Partial Offer and the Option Offer.

Shareholders and potential investors of the Company should note that the Partial Offer, the Option Offer and the Special Deal Agreements will be subject to the satisfaction of the Conditions. Accordingly, the Partial Offer, the Option Offer and the Special Deal Agreements may or may not become unconditional. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares. Persons who are in doubt as to the action they should take should consult their professional advisers.

By Order of the Board

Kerry Logistics Network Limited

LEE Pui Nee Company Secretary

Hong Kong, 5 March 2021

As at the date of this announcement, the Directors are as follows:

Executive Directors:

Mr KUOK Khoon Hua, Mr MA Wing Kai William, Mr CHEUNG Ping Chuen Vicky and Mr NG Kin Hang

Non‐executive Director:

Ms TONG Shao Ming

Independent Non‐executive Directors:

Ms KHOO Shulamite N K, Ms WONG Yu Pok Marina, Mr YEO Philip Liat Kok and Mr ZHANG Yi Kevin

The Directors jointly and severally accept full responsibility for the accuracy of information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

This announcement is published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.kln.com).