Shanghai Electric : ANNOUNCEMENT ON LAND RESUMPTION PROGRESS

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SHANGHAI ELECTRIC GROUP COMPANY LIMITED

上海電氣集團股份有限公司

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02727)

ANNOUNCEMENT ON LAND RESUMPTION PROGRESS

This announcement is made by the board of directors of Shanghai Electric Group Company Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and with reference to Rule 13.10B of the Listing Rules.

Reference is made to the announcement of the Company dated 27 December 2019 in relation to the entering into of the State-owned Land Use Rights Resumption Contract by the Company and Jing'an Land Reserve Center of Shanghai (the "Land Reserve Center"), pursuant to which, both parties reached consensus on the Land Reserve Center's resumption of the state- owned land use rights of the properties located at No. 400 Wenshui Road and No. 450 Wenshui Road, Jing'an District held by the Company (the "Transaction"). Terms defined in the abovementioned announcement shall have the same meaning when used herein unless the context herein requires otherwise.

As of 27 December 2019, the Company has completed the transfer of the properties located at No. 400 Wenshui Road and No. 450 Wenshui Road and has received all the resumption contract payment in the total amount of RMB1,576.32 million. As of the date of this announcement, the Transaction has been completed.

By order of the Board

Shanghai Electric Group Company Limited

ZHENG Jianhua

Chairman of the Board

Shanghai, the PRC, 30 December 2019

As at the date of this announcement, the executive directors of the Company are Mr. ZHENG Jianhua, Mr. HUANG Ou, Mr. ZHU Zhaokai and Mr. ZHU Bin; the non-executive directors of the Company are Ms. YAO Minfang and Ms. LI An; and the independent non-executive directors of the Company are Dr. CHU Junhao, Dr. XI Juntong and Dr. XU Jianxin.

* For identification purpose only

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