Shanghai Electric : ANNOUNCEMENT ON PROGRESS OF EXTERNAL INVESTMENT

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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 PROGRESS OF EXTERNAL INVESTMENT

Reference is made to the announcement of Shanghai Electric Group Company Limited (the "Company") dated 11 November 2019 in relation to the acquisition of Yinghe Technology (the "Transactions"). Terms defined in the abovementioned announcement shall have the same meaning when used herein unless the context herein requires otherwise.

On 18 December 2019, the Company received the "Securities Transfer Registration Confirmation" issued by China Securities Depository and Clearing Corporation Limited and has completed the Share Transfer in the Transactions. As of the date of this announcement, the Company held 36,589,932 shares of Yinghe Technology, representing 9.73% of the total share capital of Yinghe Technology. Once the number of directors nominated by the Company represents more than half of the number of the seats on the board of Yinghe Technology, and Mr. Wang Weidong and Ms. Xu Xiaoju give up the voting rights attached to the 109,769,800 shares held by them in Yinghe Technology, the Company will become the controlling shareholder of Yinghe Technology and Yinghe Technology will become a subsidiary of the Company.

The Company will fulfill its information disclosure obligations in a timely manner based on the actual progress of the Transactions.

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

Shanghai Electric Group Company Limited

ZHENG Jianhua

Chairman of the Board

Shanghai, the PRC, 18 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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