Shanghai Electric : ANNOUNCEMENT ON THE PROGESS OF THE NON-PUBLIC ISSUANCE OF EXCHANGEABLE CORPORATE BONDS BY THE CONTROLLING SHAREHOLDER

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.

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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 THE PROGESS OF THE NON-PUBLIC ISSUANCE OF EXCHANGEABLE CORPORATE BONDS BY THE CONTROLLING SHAREHOLDER

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.

References are made to the announcements of the Company dated 2 July 2018 in relation to the proposed non-public issuance of exchangeable corporate bonds (the "Exchangeable Bonds") by Shanghai Electric (Group) Corporation ("SEC"), the controlling shareholder of the Company; the announcement of the Company dated 9 January 2020 in relation to the No Objection Letter of the Exchangeable Bonds obtained by SEC and SEC's completion of application to pledge 1,120,000,000 A shares of the Company (representing 7.39% of the Company's total issued share capital by then); the announcement of the Company dated 17 January 2020 in relation to the completion of registration procedures for the share pledge on 15 January 2020 and the completion of transfer of the 1,120,000,000 A shares to "Shanghai Electric (Group) Corporation-Shanghai Electric (Group) Corporation 2020 Non-Public Offering of Exchangeable Corporate Bonds (Phase 1) Designated Shares Pledge Account"; the announcement of the Company dated 4 February 2020 in relation to the successful issuance of the Exchangeable Bonds (Phase 1); the announcement of the Company dated 9 March 2021 in relation to the non-public issuance of exchangeable corporate bonds (the Exchangeable Bonds shall be issued in tranches, and this tranche is the second one, which is the first issuance of such kind for 2021) to be issued by SEC using the A shares of the Company held by it and its yields as the exchange objects, and the submission of application documents to open a special account for the pledge of exchangeable corporate bonds (the "Share Pledge"); and the announcement of the Company dated 15 March 2021, in relation to the completion of the Share Pledge. Terms defined in the abovementioned announcements shall have the same meaning when used herein unless the context herein requires otherwise.

The Company has recently received a notice from SEC that the offering of Shanghai Electric (Group) Corporation-Shanghai Electric (Group) Corporation 2021 Non-Public Offering of Exchangeable Corporate Bonds (Phase 1) (the "Phase 1 Exchangeable Bonds") was completed on 23 March 2021. The Phase 1 Exchangeable Bonds is abbreviated as "21 Electric EB" and its bond code is "137119". The actual offering size of the Phase 1 Exchangeable Bonds is RMB1 billion with a term of 3 years anda coupon rate of 0.01%. The share exchange period of the Phase 1 Exchangeable Bonds is from the first trading day after six months after the end of the offering to the maturity date of the Phase 1 Exchangeable Bonds (in the event of a statutory holiday or a weekend, it will be extended to the next workday thereafter).

In relation to the issuance of the Exchangeable Bonds and subsequent events, the Company will make disclosure in a timely manner in accordance with relevant regulatory requirements.

By order of the Board

Shanghai Electric Group Company Limited

ZHENG Jianhua

Chairman of the Board

Shanghai, the PRC, 23 March 2021

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. XI Juntong, Dr. XU Jianxin and Dr. LIU Yunhong.

* For identification purpose only