Quantum key distribution (QKD) has been extensively studied for practical applications. Advantage distillation (AD) represents a key technique to extract highly correlated bit pairs from weakly correlated ones, thus improving QKD protocol performance, particularly in large-error scenarios. However, its practical implementation remains under-explored. In this study, the AD is integrated into the three-intensity decoy-state BB84 protocol and its performance is demonstrated on a high-speed phase-encoding platform. The experimental system employs an asymmetric Mach-Zehnder interferometer (AMZI) fabricated on a silicon dioxide optical waveguide chip for phase encoding, which is benefited from its low coupling loss and minimum waveguide transmission loss. Phase-randomized weak coherent pulses, generated by a distributed feedback laser at 625 MHz, are modulated into decoy states of varying intensities. The signals are encoded via an AMZI and attenuated to single-photon levels before transmission. At the receiver, another AMZI demodulates the signals detected by avalanche photodiodes in gated mode. Experiments conducted at 50 km and 105 km demonstrate secure key rates of 104 kbits/s and 59 bits/s, respectively. The results at shorter distances closely match theoretical predictions, while slight deviations at 105 km are attributed to signal attenuation and noise. Despite these challenges, the results obtained at 105 km highlight the effectiveness of AD in enhancing secure key rates in the large-error scenario. This study confirms the potential of AD in extending secure communication range of QKD. By leveraging the high integration and scalability of silicon dioxide photonic chips, the proposed system lays a foundation for large-scale QKD deployment, paving the way for developing advanced protocols and real-world quantum networks.