Shanghai Electric : PROPOSED CHANGE OF EXECUTIVE DIRECTOR

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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

PROPOSED CHANGE OF EXECUTIVE DIRECTOR

The board (the "Board") of directors of Shanghai Electric Group Company Limited (the "Company") hereby announces the followings:

RESIGNATION OF EXECUTIVE DIRECTOR

Due to age reasons, Mr. ZHU Bin ("Mr. ZHU") resigned as an executive director of the Company with effect from the date of this announcement. Mr. ZHU will cease to hold any position in the Company after his resignation.

Mr. ZHU confirms that there is no disagreement between himself and the Board during his term of office and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company (the "Shareholders").

The Company wishes to express its appreciation for the valuable contributions made by Mr. ZHU towards the development of the Company during his term of office.

PROPOSED APPOINTMENT OF EXECUTIVE DIRECTOR

The Board agreed to nominate Mr. GAN Pin ("Mr. GAN") as the candidate for an executive director of the fifth session of the Board of the Company. The term of office of Mr. GAN will be from the date on which his appointment is approved at the general meeting to the end of the term of the fifth session of the Board.

The biography of Mr. GAN is as follows:

Mr. GAN Pin, 58, currently serves as chairman and secretary of the Communist Party Committee of Shanghai Microelectronics Equipment (Group) Co., Ltd. Mr. GAN served as the manager and secretary of the Communist Party Committee of the second car plant of Shanghai Volkswagen Co., Ltd., the general manager of Shanghai Bus Manufacturing Co., Ltd., the executive deputy general manager and secretary of Communist Party Committee of Shanghai Shenwo Bus Co., Ltd., the deputy general manager of SAIC Motor Manufacturing Co., Ltd. Mr. GAN held several positions in Shanghai Automobile Co., Ltd., including the head of an Engine Project, the deputy dean of Automotive

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Engineering Research Institute, deputy director of Technology Center, general manager of Fuel Cell Vehicle Business Unit, deputy leader of New Energy Work Promotion Team, director of Technology Management Office, general manager of New Energy Vehicle Business Unit, and executive director of the New Energy and Technology Management Department. Mr. GAN served as the deputy director and the first-level inspector of the Shanghai Municipal Science and Technology Commission. Mr. Gan Pin graduated from Shanghai Jiao Tong University majoring in marine internal combustion engines. Mr. GAN possesses a master's degree in engineering and business administration and is a professor-level senior engineer.

Mr. GAN has not held any directorship in any other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the past three years. Mr. GAN does not have any relationship with any directors, supervisors, senior management, substantial or controlling shareholders of the Company within the meaning of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). As at the date of this announcement, Mr. GAN does not have any interest in the shares of the Company or its associated companies within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

During term of office of Mr. GAN being an executive director of the Company, the emoluments of Mr. GAN will be determined based on a number of factors, including the operating results of the Company, his responsibilities, performance and market conditions. As at the date of this announcement, the Company has not yet entered into any director service contract with Mr. GAN.

Save as disclosed above, there is no other information in relation to the appointment of Mr. GAN which is required to be disclosed pursuant to the requirements set out in Rules 13.51(2) (h) to (v) of the Listing Rules nor are there any matters which need to be brought to the attention of the Shareholders.

MISCELLANEOUS

A general meeting of the Company will be convened by the Company to approve the proposal to appoint Mr. GAN as an executive director. A circular containing, among other things, details of the appointment will be dispatched to the Shareholders in due course.

By order of the Board

Shanghai Electric Group Company Limited

ZHENG Jianhua

Chairman of the Board

Shanghai, the PRC, 12 April 2021

As at the date of this announcement, the executive directors of the Company are Mr. ZHENG Jianhua, Mr. HUANG Ou and Mr. ZHU Zhaokai; 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

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