Safety Godown : PROFIT UPDATE

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SAFETY GODOWN COMPANY, LIMITED

(Incorporated in Hong Kong with Limited Liability)

(Stock Code: 237)

PROFIT UPDATE

This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and Inside Information Provisions under Part XIVA of the SFO.

The Board wishes to inform the Shareholders and potential investors that, based on the Board's preliminary assessment of the Group's latest unaudited consolidated management accounts and the information currently available to the Company, the Group is expected to record a loss for the six months ended 30 September 2019 as compared to a profit of HK$155.70 million recorded for the previous corresponding financial period.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

This announcement is made by Safety Godown Company, Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company and potential investors that, based on the Board's preliminary assessment of the Group's latest unaudited consolidated management accounts and the information currently available to the Company, the Group is expected to record a loss for the six months ended 30 September 2019 (the "Period") as compared to a profit of HK$155.70 million recorded for the previous corresponding financial period. Such expected loss was primarily due to a fair value loss arising from revaluations of the investment properties of the Group (whereas a fair value gain was recorded for the previous corresponding financial period), amounting to approximately HK$66.90 million. Excluding such fair value loss, the profit for the period attributable to owners of the Company is expected to increase.

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Despite the aforesaid, the Board believes that the overall operation of the Group remains sound and intact, and the financial position of the Group remains solid.

The Company is still in the process of finalizing the unaudited interim results of the Group for the Period. The information contained in this announcement is only based on the information currently available to the Company and such information has not been audited or reviewed by the Company's auditor or Audit Committee. Shareholders and potential investors are advised to read carefully the unaudited interim results announcement of the Company for the Period which is expected to be published in late November 2019.

Shareholders of the Company and potential investors are advised to exercise caution when dealing

in the securities of the Company.

By order of the Board

Safety Godown Company, Limited

Mui Ngar May, Joel

Company Secretary

Hong Kong, 29 October 2019

As at the date of this announcement, the Board comprises one Executive Director, Mr. Lu Wing Yee, Wayne; one Non-executive Director, Mr. Lee Ka Sze, Carmelo; and three Independent Non-executive Directors, namely Mr. Gan Khai Choon, Mr. Lam Ming Leung and Mr. Leung Man Chiu, Lawrence.

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