09:41     SHANGHAI ELECTRIC GROUP COMPANY LIMITED<02727> - Ann. (7)           

    The total number of H Shares being offered under the                      
    Hong Kong Public Offering (after taking account of                        
    any reallocation referred to below) is to be divided                      
    into two pools for allocation purposes: pool A and                        
    pool B. The H Shares in pool A will be allocated on                       
    an equitable basis to applicants who have applied for                     
    H Shares with an aggregate subscription price of HK$5                     
    million (excluding the brokerage, SFC transaction                         
    levy, investor compensation levy and Stock Exchange                       
    trading fee payable) or less. The H Shares in pool                        
    B will be allocated on an equitable basis to                              
    applicants who have applied for H Shares with an                          
    aggregate subscription price of more than HK$5                            
    million (excluding the brokerage, SFC transaction                         
    levy, investor compensation levy and Stock Exchange                       
    trading fee payable) and up to the value of pool B.                       
    Investors should be aware that applications in pool                       
    A and applications in pool B may receive different                        
    allocation ratios. If H Shares in one (but not both)                      
    of the pools are under subscribed, the surplus H                          
    Shares will be transferred to the other pool to                           
    satisfy demand in this other pool and be allocated                        
    accordingly. For the purpose of this paragraph only,                      
    the "subscription price" of H Shares means the price                      
    payable on application therefor (without regard to                        
    the Offer Price as finally determined). Applicants                        
    can only receive an allocation of H Shares from either                    
    pool A or pool B but not from both pools.                                 
                                                                              
    It is expected that the level of indication of                            
    interest in the International Offering, the Offer                         
    Price, the results of applications and the basis of                       
    allotment of Hong Kong Offer Shares will be published                     
    on Wednesday, April 27, 2005 in the South China                           
    Morning Post (in English) and the Hong Kong Economic                      
    Times (in Chinese).                                                       
                                                                              
    If you are applying using a yellow Application Form                       
    or by giving electronic application instructions to                       
    HKSCC and your application is wholly or partially                         
    successful, your H Share certificate will be issued                       
    in the name of HKSCC Nominees Limited and deposited                       
    into CCASS for credit to your CCASS Investor                              
    Participant stock account or the stock account of any                     
    designated CCASS Participant giving electronic                            
    application instructions on your behalf or as                             
    instructed by you in your yellow Application Form at                      
    the close of business on Wednesday, April 27, 2005                        
    or under contingent situations, on any other date as                      
    shall be determined by HKSCC or HKSCC Nominees Limited.                   
    If you are applying through a designated CCASS                            
    Participant (other than a CCASS Investor Participant),                    
    you can check the number of Hong Kong Offer Shares                        
    allocated to you (and the amount of refund money                          
    payable to you if you have instructed a CCASS                             
    Broker/Custodian Participant to give electronic                           
    application instructions on your behalf) with that                        
    CCASS Participant. If you are applying as a CCASS                         
    Investor Participant, you should check the                                
    announcement published by the Company on Wednesday,                       
    April 27, 2005 (for CCASS Investor Participant                            
    applying by giving electronic application                                 
    instructions to HKSCC, they can also check the                            
    application results via the CCASS Phone System and                        
    CCASS Internet Systems) and report any discrepancies                      
    to HKSCC before 5:00 p.m. on Wednesday, April 27, 2005                    
    or such other date as shall be determined by HKSCC                        
    or HKSCC Nominees Limited. Immediately after the                          
    credit of the Hong Kong Offer Shares to your account,                     
    you can also check your new account balance via the                       
    CCASS Phone System and CCASS Internet System (under                       
    the procedures contained in