Shengkai Innovations, Inc. reported consolidated unaudited earnings results for the first quarter ended September 30, 2012. For the quarter, the company reported revenues of $4,674,285 compared with $11,011,127 for the same period last year. Income from operations was $128,268 compared with $356,961 for the same period last year. Income before income taxes was $236,382 compared with $1,463,013 for the same period last year. Net income was $52,777 or $0.003 diluted per share compared with $944,338 or $0.052 diluted per share for the same period last year. Net cash provided by operating activities was $2,220,450 compared with $1,962,346 for the same period last year. Purchase of property, plant and equipment was $808 compared with $403,440 for the same period last year. Non-GAAP operating income was approximately $0.3 million compared with non-GAAP operating income of approximately $2.5 million for the comparable period in fiscal year of 2012. The decrease was primarily due to the decline in revenues resulting from slowdown in PRC economy and operational transition, coupled with higher raw material costs. Non-GAAP earnings were $0.015 per diluted share compared with $0.12 per diluted share in the first quarter of fiscal year of 2012.

The company expects that in the immediately following quarter ended December 31, 2012, total revenues would remain flat, and major contribution to its sales would be from the petrochemical and chemical industry.