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Shanghai Electric can be traced back to 1902, when Shanghai Dalong Machinery Works was established as Shanghai Electric's first large-scale enterprise and an outstanding pioneer of Shanghai's modern machine industry.

In March, with the abolishment of the Heavy Industry Administration, the First Heavy Industry Administration and Second Heavy Industry Administration were established in Shanghai, and the electromechanical industry was put under the administration of the First Heavy Industry Administration.

In August, the Shanghai Mechanical and Electrical Bureau was divided into the Shanghai Machinery Industry Bureau and Shanghai Electric Machine Industry Bureau.

In January, consolidating the strengths of manufacturers of mechanical, electrical, boiler and auxiliary power station equipment, the Shanghai Municipal Government formed Shanghai Electric Associate Company, which was separated out from the Shanghai First Mechanical and Electrical Industry Bureau and put under the administration of the Shanghai Economic Committee. In October, the Shanghai First Mechanical and Electrical Industry Bureau was renamed the Shanghai Mechanical and Electrical Industries Administration.

In May, the Shanghai Mechanical and Electrical Industries Administration was restructured into Shanghai Mechanical and Electrical Holding (Group) Company.

In March, Shanghai Electric (Group) Corporation was restructured into a shareholding company, attracted diversified investors, and established Shanghai Electric Group Limited.

In December, A-shares of Shanghai Electric (601727.SH) were listed, and Shanghai Electric became a public company with both A- and H-share listings.