X0303 4 2010-06-22 0 0001327364 Shengkai Innovations, Inc. VALV 0001436232 GUO WEI SOUTHERN SAUCE COMPANY INC SHENGKAI INDUSTRIAL PARK, WANG GANG ROAD SHUANG GANG, TIANJIN F4 300350 CHINA 1 0 1 0 common stock 2009-08-05 4 C 0 10400000 30 A 17400000 I by spouse Options to purchase common stock 8.13 2010-06-22 4 A 0 100125 0 A 2010-06-22 2015-06-22 common stock 100125 100125 D Options to purchase common stock 8.13 2010-06-22 4 A 0 150000 0 A 2010-06-22 2015-06-22 common stock 150000 250125 I by spouse The Reporting Person is the wife of Mr. Wang Chen, the sole shareholder of Long Sunny Limited ("Long Sunny"), which is a majority shareholder of Shengkai Innovations, Inc. ("the Company") that owns 17,400,000 shares of the Company's common stock. Mr. Wang also directly holds an option to purchase 150,000 shares of the Company's common stock. The Reporting Person's indirect beneficial ownership in the Company is based upon Mr. Wang's ownership of this option and his 100% interest in Long Sunny. Accordingly, 17,400,000 shares of common stock issued to Long Sunny and the option to purchase 150,000 shares of the Company's common stock are indirectly beneficially attributed to the Reporting Person. This option ("the Option") was issued pursuant to the Company's 2010 Incentive Stock Plan and the Nonstatutory Stock Option Agreement ("the Agreement") dated as of June 22, 2010. The Option shall become exercisable during the term of the Reporting Person's employment in three equal annual installments of 33,375 shares each, the first installment to be exercisable immediately upon the execution of the Agreement, and each subsequent installment on every anniversary thereof. /s/Jessica S. Yuan, Attorny-at-Law 2010-06-24