Awarded “AAA Credit Enterprise” in 2024

In 2024, Shanghai Electric Group Shanghai Electric Machine Co., Ltd. was awarded the “AAA Credit Enterprise” title by authoritative institutions. This rating reflects a comprehensive evaluation and high recognition of the Company’s credit status, compliance operations, financial stability, contract performance, and social responsibility, indicating that the Company has reached an excellent standard in business reputation and corporate governance within the industry.

During the evaluation process, the reviewing institutions conducted a thorough assessment based on multiple criteria, including but not limited to: corporate governance structure and internal control mechanisms, recent financial statements’ stability and debt repayment capacity, contract performance records and trade credit history, compliance in tax and social insurance payments, execution of quality, safety, and environmental responsibilities, and corporate integrity records (such as administrative penalties or legal disputes). Based on sustained stable operations, transparent and standardized financial and compliance management, and strong credit records with customers and suppliers, the Company was ultimately rated AAA and received this honor.

To achieve and maintain this high-level rating, the Company has implemented systematic measures: establishing and refining credit management systems and risk control frameworks, standardizing contract management and credit approval processes; implementing digital management and financial transparency to enhance accounting compliance and fund operation efficiency; strengthening lawful taxation and social responsibility practices to ensure compliant records in tax and social insurance; applying strict credit checks and account period management in supply chain operations to ensure mutual trust and long-term cooperation with partners; and conducting internal audits and external compliance training to promote continuous implementation of internal controls and a compliance-oriented culture.

Receiving the “AAA Credit Enterprise” title holds significant strategic importance for the Company: it further consolidates the Company’s credibility in the industry and market, enhancing competitiveness in bidding, partnership negotiations, and government procurement; it helps optimize financial institutions’ credit evaluation perspectives, facilitating better terms and costs for financing, factoring, and trade credit; and it strengthens customer and partner confidence in the Company’s contract performance and long-term cooperation value.

Looking forward, the Company will take this credit evaluation as a new starting point, continuously maintaining and improving its credit management systems and risk control capabilities, promoting standardized governance, transparency, and law-compliant operations. The Company is committed to adhering to honesty, integrity, and fair trading principles in all business activities, continuing to serve customers, partners, and society with high credit standards, and striving to convert the “AAA” credit rating into a sustainable long-term competitive advantage.